Trial balance with currency exchange (was: gnucash-user Digest, Vol 51, Issue 25)
daniel.carrera at zmsl.com
Thu Jun 21 15:15:35 EDT 2007
Carlo Marinoni wrote:
>> Daniel <daniel.carrera at zmsl.com> writes:
>>> Oh, here is another thought: I deal with more than one currency. Could
>>> that be the problem? ...
>>> If I have income and expenses in more than one currency, I guess
>>> currency fluctuations could ruin the trial balance.
>>> Do you think this might be the problem?
>> Yes, it could be!
> It surely is; I had the same problem, with EUR and GBP exchanges...
> ... The solution I adopted was to re-enter all the currency
> transactions with the same exchange rate as the first one...
Ok. Good to know what the problem is. But with your solution the
balances on your ledger (GnuCash) won't match your bank statements.
You know what would be nice? To have GnuCash automatically add an
Expense/Income entry called "Currency Exchange". So, if the currencies
fluctuation in a way that cause you to make money, it's an income, and
if you lose money, add an expense.
This would have the nice property that it matches the real world well.
If you make money through currency speculation, that *is* income. If you
lose money to spread, that *is* an expense.
I currently deal with three currencies regularly (my income is in GBP
and my expenses are in CAD and EUR). I expect to start dealing with USD
as well soon. I would love to have a good way to deal with currency
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