custom separate trading accounts
gnucash.133518b at telus.net
gnucash.133518b at telus.net
Thu May 22 04:53:11 EDT 2014
I have two separate reasons to enable GnuCash trading accounts. The
first is because I have bank and expense accounts in two different
currencies and wish to benefit from the advantages documented by Peter
Selinger:
http://www.mscs.dal.ca/~selinger/accounting/tutorial.html
The second reason relates to investments and derives from the section in
that document entitled "Realized and unrealized gains and losses". I
happen to live in Canada which uses the adjusted cost base method. To
quote Peter, "in the adjusted cost base system, it is possible to
calculate the amount of the realized gain or loss without looking at the
entire history of purchases and sales. ... you will discover that the
adjusted cost base at any given time is exactly equal to the CAD portion
of the trading account. ... the trading account precisely mirrors the
historical cost of shares. The realized gain or loss of a sales
transaction can therefore be calculated simply by looking at the trading
account balance just prior to the sale. Of course, this only works if
there is a separate trading account for each kind of shares owned". I
believe it would greatly simplify ACB calculations for me if I can
implement those separate trading accounts Peter speaks of.
GnuCash automagically creates and populates whatever trading accounts
are required. This is very convenient, but it does NOT create separate
accounts for each kind of share and its corresponding currency. For
example, no matter how many different investment accounts might hold the
Canadian SHA share, all will automatically use these same two trading
accounts, namely Trading:TSX:SHA and Trading:CURRENCY:CAD. Moreover,
Trading:CURRENCY:CAD is also being used for simple CAD/USD expense
transactions. What this means is that Trading:CURRENCY:CAD is of no use
to me in determining the current ACB for the SHA shares in any
particular investment account because it aggregates everything.
Instead of using Trading:TSX:SHA and Trading:CURRENCY:CAD, what I really
need is for Assets:Investments:ThisStockAccount to utilize something
like Trading:ThisStockAccount:SHA and Trading:ThisStockAccount:CAD. It
would be great if this was a configurable item, but it doesn't seem to
be (feature request). It does seem I can manually create those separate
trading accounts and then manually modify each transaction to use them,
but before I commit to that path I would like to know whether there are
any pitfalls in doing this, especially since I don't know how much
automatic behaviour is behind the trading account implementation. Any
typos or errors in entering a transaction like this have the very
irritating side effect of automatically tossing in an extra pair of
Trading:TSX:SHA and Trading:CURRENCY:CAD splits that have to be manually
weeded back out, but I'm hoping this is survivable. Are there any
reasons why I will regret manually forcing custom separate trading
accounts like this?
Carl
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