[Gnucash-changes] r13938 - gnucash-docs/trunk - update with Bengt
Thuree & Dave Herman's revisions
Chris Lyttle
wilddev at cvs.gnucash.org
Sun May 7 01:36:23 EDT 2006
Author: wilddev
Date: 2006-05-07 01:36:07 -0400 (Sun, 07 May 2006)
New Revision: 13938
Trac: http://svn.gnucash.org/trac/changeset/13938
Added:
gnucash-docs/trunk/guide/C/figures/currency_AfterGetOnlineQuotes.png
gnucash-docs/trunk/guide/C/figures/currency_BeforeGetOnlineQuotes.png
gnucash-docs/trunk/guide/C/figures/currency_PutTogether_AfterMoney.png
gnucash-docs/trunk/guide/C/figures/currency_PutTogether_AussieHouse.png
gnucash-docs/trunk/guide/C/figures/currency_main3.png
gnucash-docs/trunk/guide/C/figures/currency_purchase_AfterBoat.png
gnucash-docs/trunk/guide/C/figures/currency_purchase_AfterStocks.png
gnucash-docs/trunk/guide/C/figures/currency_purchase_BeforeBoat.png
gnucash-docs/trunk/guide/C/figures/currency_purchase_BeforeStocks.png
gnucash-docs/trunk/guide/C/figures/currency_purchase_Commodities.png
gnucash-docs/trunk/guide/C/figures/currency_purchase_MoveMoney.png
gnucash-docs/trunk/guide/C/figures/currency_purchase_SetExchangeRate.png
gnucash-docs/trunk/guide/C/figures/currency_purchase_ToAmount.png
gnucash-docs/trunk/guide/C/figures/invest_dividendcash.png
gnucash-docs/trunk/guide/C/figures/invest_dividendreinvest1.png
gnucash-docs/trunk/guide/C/figures/invest_dividendreinvest2.png
gnucash-docs/trunk/guide/C/figures/txns_registersplit4.png
gnucash-docs/trunk/guide/C/figures/txns_registersplit5.png
gnucash-docs/trunk/guide/C/figures/txns_registersplit6.png
Modified:
gnucash-docs/trunk/ChangeLog
gnucash-docs/trunk/guide/C/ch_accts.xml
gnucash-docs/trunk/guide/C/ch_basics.xml
gnucash-docs/trunk/guide/C/ch_currency.xml
gnucash-docs/trunk/guide/C/ch_invest.xml
gnucash-docs/trunk/guide/C/ch_loans.xml
gnucash-docs/trunk/guide/C/ch_oview.xml
gnucash-docs/trunk/guide/C/ch_txns.xml
gnucash-docs/trunk/guide/C/figures/currency_main1.png
gnucash-docs/trunk/guide/C/figures/currency_main2.png
gnucash-docs/trunk/guide/C/figures/currency_peditor.png
gnucash-docs/trunk/guide/C/figures/currency_selectcomm.png
gnucash-docs/trunk/guide/C/figures/currency_selectcurr.png
Log:
update with Bengt Thuree & Dave Herman's revisions
Modified: gnucash-docs/trunk/ChangeLog
===================================================================
--- gnucash-docs/trunk/ChangeLog 2006-05-07 00:38:45 UTC (rev 13937)
+++ gnucash-docs/trunk/ChangeLog 2006-05-07 05:36:07 UTC (rev 13938)
@@ -1,3 +1,46 @@
+2006-05-06 Chris Lyttle <chris at wilddev.net>
+
+ * Updated the following (from Bengt Thuree <bengt at thuree.com>):
+ 'guide/C/ch_loans.xml'
+ 'guide/C/ch_oview.xml'
+ 'guide/C/ch_currency.xml'
+ 'guide/C/ch_txns.xml'
+ 'guide/C/ch_accts.xml'
+ 'guide/C/ch_basics.xml'
+ 'guide/C/figures/currency_main2.png'
+ 'guide/C/figures/currency_peditor.png'
+ 'guide/C/figures/currency_selectcomm.png'
+ 'guide/C/figures/currency_selectcurr.png'
+ 'guide/C/figures/currency_main1.png'
+
+ * Added the following new screenshots (from Bengt Thuree
+ <bengt at thuree.com>):
+ 'guide/C/figures/currency_purchase_MoveMoney.png'
+ 'guide/C/figures/currency_BeforeGetOnlineQuotes.png'
+ 'guide/C/figures/currency_purchase_BeforeStocks.png'
+ 'guide/C/figures/currency_PutTogether_AussieHouse.png'
+ 'guide/C/figures/txns_registersplit5.png'
+ 'guide/C/figures/currency_purchase_AfterStocks.png'
+ 'guide/C/figures/currency_purchase_AfterBoat.png'
+ 'guide/C/figures/currency_PutTogether_AfterMoney.png'
+ 'guide/C/figures/currency_AfterGetOnlineQuotes.png'
+ 'guide/C/figures/currency_purchase_Commodities.png'
+ 'guide/C/figures/currency_purchase_ToAmount.png'
+ 'guide/C/figures/currency_purchase_SetExchangeRate.png'
+ 'guide/C/figures/txns_registersplit4.png'
+ 'guide/C/figures/txns_registersplit6.png'
+ 'guide/C/figures/currency_purchase_BeforeBoat.png'
+ 'guide/C/figures/currency_main3.png'
+
+ * Updated the following (from Dave Herman <dvherman at bigfoot.com>):
+ 'guide/C/ch_invest.xml'
+
+ * Added the following new screenshots (from Dave Herman
+ <dvherman at bigfoot.com>):
+ 'guide/C/figures/invest_dividendcash.png'
+ 'guide/C/figures/invest_dividendreinvest2.png'
+ 'guide/C/figures/invest_dividendreinvest1.png'
+
2006-04-25 Chris Lyttle <chris at wilddev.net>
* Updated the following (from Bengt Thuree <bengt at thuree.com>):
Modified: gnucash-docs/trunk/guide/C/ch_accts.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_accts.xml 2006-05-07 00:38:45 UTC (rev 13937)
+++ gnucash-docs/trunk/guide/C/ch_accts.xml 2006-05-07 05:36:07 UTC (rev 13938)
@@ -351,7 +351,7 @@
</mediaobject>
</screenshot>
- <sidebar>
+ <note> <!-- <sidebar> -->
<title>More on Debits and Credits</title>
<para>Remember the terms debit and credit discussed in
@@ -389,7 +389,7 @@
<emphasis>credit</emphasis> your bank account. To the bank, this is a
decrease in a liability, so they <emphasis>debit</emphasis> your bank
account.</para>
- </sidebar>
+ </note> <!-- </sidebar> -->
</sect2>
</sect1>
@@ -429,7 +429,7 @@
<sect2 id="accts-examples-toplevel2">
<title>The Basic Top Level Accounts</title>
- <para>Now, we must decide how you want to group these accounts. Most
+ <para>Now, you must decide how you want to group these accounts. Most
likely, you want your assets groups together, your liabilities grouped
together, your Equity grouped together, your income grouped together,
and your expenses grouped together. This is the most common way of
@@ -515,7 +515,7 @@
<sect2 id="accts-examples-organization2">
<title>Making Sub-Accounts</title>
- <para>We can now add to this basic top-level tree structure by inserting
+ <para>You can now add to this basic top-level tree structure by inserting
some real transaction-holding sub-accounts. Notice that the tax accounts
are placed within a sub-account named "Taxes". You can make sub-accounts
within sub-accounts. This is typically done with a group of related
@@ -620,8 +620,8 @@
</screenshot>
<para>Save this chart of accounts with the name
- <filename>gcashdata_3</filename>, as we will continue to use it in the
- later chapters.</para>
+ <filename>gcashdata_3</filename>, as well as <filename>gcashdata_3emptyAccts</filename>,
+ as we will continue to use them in the later chapters.</para>
<para>You have now created a chart of accounts to track a simple
household budget. With this basic framework in place, we can now begin
Modified: gnucash-docs/trunk/guide/C/ch_basics.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_basics.xml 2006-05-07 00:38:45 UTC (rev 13937)
+++ gnucash-docs/trunk/guide/C/ch_basics.xml 2006-05-07 05:36:07 UTC (rev 13938)
@@ -444,7 +444,7 @@
more information you provide when entering transactions, the more
detailed your reports will be.</para>
- <sidebar>
+ <note> <!-- <sidebar> -->
<title>Accounting Terminology</title>
<para>Accountants use the terms <emphasis>debit</emphasis> and
@@ -473,7 +473,7 @@
<guimenuitem>Preferences</guimenuitem> <guibutton>General</guibutton>
(see <xref linkend="basics-prefs1"></xref> for more detail on setting
preferences).</para>
- </sidebar>
+ </note> <!-- </sidebar> -->
</sect2>
</sect1>
@@ -685,14 +685,18 @@
You can access the menu options by either clicking on these menu
headings or by using shortcut key combinations, covered later in this
chapter. Next is the tool bar, which contains buttons for the most
- common functions. Below that is the status bar, which tells you
+ common functions.</para>
+
+ <para>The account tree appears below the tool bar. Once you have
+ started creating accounts, the account names will appear in the account
+ tree. You can customize which headings show up by using the
+ small <guiicon>down-arrow</guiicon> at the far right just above the account tree.</para>
+
+ <para>At the bottom is the status bar, which tells you
information about what you own (Net Assets) and how much money you have
made (Profits).</para>
- <para>The account tree appears below the status bar. Once you have
- started creating accounts, the account names will appear in the account
- tree. You can customize which headings show up by using the
- <guiicon>Options</guiicon> button.</para>
+
</sect2>
<sect2 id="basics-register2">
@@ -733,6 +737,13 @@
covered in <xref linkend="chapter_txns"></xref>. At the bottom of the
account register window,
information appears about the current location of the cursor.</para>
+
+ <para>You can resize the various columns that GnuCash display, but keep
+ in mind that the description column will automatically expand to fill all unused
+ space. Therefore you should increase the size of all your other columns
+ first and then decrease the size of the description column.
+ </para>
+
</sect2>
<sect2 id="basics-toolbar2">
@@ -766,18 +777,8 @@
are functions related to accounts. They are discussed in
<xref linkend="chapter_accts"></xref>.</para>
</listitem>
-
- <listitem>
- <para><guibutton>Options</guibutton> - This button edits the account
- view options.</para>
- </listitem>
-
- <listitem>
- <para><guibutton>Exit</guibutton> - Closes your GnuCash
- session.</para>
- </listitem>
</itemizedlist>
-
+
<para>Register buttons are discussed in <xref linkend="chapter_txns"></xref>.
</para>
</sect2>
Modified: gnucash-docs/trunk/guide/C/ch_currency.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_currency.xml 2006-05-07 00:38:45 UTC (rev 13937)
+++ gnucash-docs/trunk/guide/C/ch_currency.xml 2006-05-07 05:36:07 UTC (rev 13938)
@@ -1,167 +1,1383 @@
+<?xml version="1.0" encoding="UTF-8"?>
<!--
(Do not remove this comment block.)
+ Version: 1.9.0
+ Last modified: April 25th 2006
Version: 1.8.4
Last modified: April 10th 2004
Maintainers:
Chris Lyttle <chris at wilddev.net>
Author:
Jon Lapham <lapham at extracta.com.br>
+ Updated Bengt Thuree <bengt at thuree.com>
Originally designed by Carol Champagne.
Translators:
(translators put your name and email here)
-->
- <chapter id="chapter10">
- <title>Multiple Currencies</title>
- <para>This chapter will show you how to setup your GnuCash accounts to use multiple currencies.</para>
+<chapter id="chapter10">
+ <title>Multiple Currencies</title>
- <sect1 id="currency_concepts1">
- <title>Basic Concepts</title>
- <para>GnuCash supports the use of multiple currencies in different accounts. For example, you can have a bank account setup in Euros, and another using British Pounds.</para>
- <para>Some of the issues which arise when using multiple currencies is how do you transfer funds between accounts with different currencies? How do you calculate the overall value when you have mized currency accounts? How do reports deal with mixed currencies?</para>
- </sect1>
+ <para>This chapter will show you how to setup your GnuCash accounts to use
+ multiple currencies.</para>
- <sect1 id="currency_acct1">
- <title>Account Setup</title>
- <para>Your default account currency is set in <guimenu>Edit</guimenu> -> <guimenu>Preferences</guimenu> -> <guimenu>International</guimenu> -> <guilabel>New Account Default Currency</guilabel>. You should set this parameter correctly, as it will save you much time when building your account structure.</para>
- <para>When you create a new account, you have the option to define the commodity. For currency accounts, you can specify any one of the hundreds of currencies supported by GnuCash by simply selecting it from the currency commodity list. You will notice that the default currency is always whatever you have defined in the preferences. So, if you mostly work with Euros, but have the occasional Ethiopian Birr account, be sure to set your preferences to Euro.</para>
- <para>As an example, let's set up a typical bank account scenario where you mostly work in US Dollars, but do also have a European bank account using the Euro currency. So, setup 2 bank accounts, one using the Euro currency, and another in dollars. One possible account structure for this would be:</para>
- <literallayout>
+ <sect1 id="currency_concepts1">
+ <title>Basic Concepts</title>
+
+ <para>GnuCash supports the use of multiple currencies in different
+ accounts. For example, you can have a bank account setup in Euros, and
+ another using Hong Kong Dollars.</para>
+
+ <para>Some of the issues which arise when using multiple currencies is how
+ do you transfer funds between accounts with different currencies? How do
+ you calculate the overall value when you have mized currency accounts? How
+ do reports deal with mixed currencies?</para>
+ </sect1>
+
+ <sect1 id="currency_acct1">
+ <title>Account Setup</title>
+
+ <para>Your default account currency is set in <guimenu>Edit</guimenu>
+ -> <guimenu>Preferences</guimenu> -> <guimenu>Accounts</guimenu>
+ -> <guilabel>Default Currency</guilabel>. You should set this parameter
+ correctly, as it will save you much time when building your account
+ structure.</para>
+
+ <para>When you create a new account, you have the option to define the
+ commodity. For currency accounts, you can specify any one of the hundreds
+ of currencies supported by GnuCash by simply selecting it from the
+ currency commodity list. You will notice that the default currency is
+ always whatever you have defined in the preferences. So, if you mostly
+ work with Euros, but have the occasional Ethiopian Birr account, be sure
+ to set your preferences to Euro.</para>
+
+ <para>As an example, let's set up a typical bank account scenario where
+ you mostly work in US Dollars, but do also have a European bank account
+ using the Euro currency, as well as one bank account in Hong Kong using
+ Hong Kong Dollars. So, setup 3 bank accounts, one using the Euro currency,
+ one in US Dollars, and another in Hong Kong Dollars. One possible account
+ structure for this would be:</para>
+
+ <literallayout>
-Assets (USD)
- -Banks (USD)
+ -Current Assets (USD)
-US Bank (USD)
- -European Bank (EUR)
+ -European Bank (EUR)
+ -HK Bank (HKD)
-Equity (USD)
- -Starting Balances USD (USD)
- -Starting Balances EUR (EUR)
+ -Opening Balances
+ -USD (USD)
+ -EUR (EUR)
+ -EUR (HKD)
Note: the currency of each account is shown in parenthesis.
</literallayout>
- <para>Since in this example you mostly work in USD, all of the parent accounts are set to USD. Of course, if you mostly work in Euros, you could change the currency of these parent accounts to EUR. To totals shown in the account tree window will always be converted to the currency of each particular account. Notice, we also setup 2 Starting Balances equity accounts, used to initially populate the 2 banks.</para>
- <note>
- <para>You could also setup just a single Starting Balance account and use a currency transfer to populate the "different currency" accounts. However, this is more advanced option, which is explain in a later section.</para>
- </note>
+ <para>Since in this example you mostly work in USD, all of the parent
+ accounts are set to USD. Of course, if you mostly work in Euros, you could
+ change the currency of these parent accounts to EUR. To totals shown in
+ the account tree window will always be converted to the currency of each
+ particular account. Notice, we also setup 3 Starting Balances equity
+ accounts, used to initially populate the 3 banks.</para>
- <para>Below you see the result of this example, in which we start with USD 10000 and EUR 10000 in the two bank accounts. Notice that the total of the parent accounts only show the value of the currency of subaccounts with matching currencies. In the future you can setup the exchange rates between the currencies, and the parent accounts will calculate the converted value of all subaccounts. See the later section on how to do this.</para>
+ <note>
+ <para>You could also setup just a single Starting Balance account and
+ use a currency transfer to populate the "different currency" accounts.
+ However, this is more advanced option, which is explained in a later
+ section (<xref linkend="currency_purchase2" />.</para>
+ </note>
- <screenshot id="currency_main1">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/currency_main1.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Initial Account 2 Bank Setup</phrase>
- </textobject>
- <caption>
- <para>Initial setup of 2 bank account with different currencies. Notice that the "Total (Report)" column is being displayed. This is configured in the <guibutton>Options</guibutton> -> <guilabel>Account Fields to Display</guilabel> area.</para>
- </caption>
- </mediaobject>
- </screenshot>
-
- </sect1>
+ <para>Below you see the result of this example, in which you start with
+ USD 10,000, EUR 10,000 as well as HKD 10,000 in the three bank accounts.
+ Notice that the total of the parent accounts only show the value of the
+ currency of subaccounts with matching currencies. In the future you can
+ setup the exchange rates between the currencies, and the parent accounts
+ will calculate the converted value of all subaccounts. See the later
+ section (<xref linkend="currency_howto1" />) on how to do this.</para>
- <sect1 id="currency_support1">
- <title>GnuCash Currency Support</title>
- <para>GnuCash supports over a hundred currencies, from the Andorran Franc to the Zimbabwe Dollar. You will also find supports for some lesser popular currencies like the US Dollar, Canadian Dollar, European Euro, and British Pound.</para>
- </sect1>
+ <screenshot id="currency_main1">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_main1.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
- <sect1 id="currency_prefs1">
- <title>Setting International Preferences</title>
- <para>For a full explanation of the International Preferences available, see the second chapter of this guide entitled "The Basics", specifically the Section "Setting Preferences".</para>
- </sect1>
+ <textobject>
+ <phrase>Initial multi currency Account Bank Setup</phrase>
+ </textobject>
- <sect1 id="currency_howtot1">
- <title>Recording Currency Exchange (How-To)</title>
- <para>In order to view your account values displayed in a currency other than their native currency, you will need to set up currency exchange rates. This is accomplised using the Price Editor.</para>
- <para>Open the Price Editor by going to <guimenu>Tools</guimenu> -> <guimenu>Price Editor</guimenu>. Click on the <guibutton>Add</guibutton> button to add a new currency exchange. A window will appear to allow you to select the commodity you wish to define the exchange rate for. Click on <guibutton>Select</guibutton> and set the <guilabel>Type</guilabel> to ISO4217 and the <guilabel>Currency/security</guilabel> to EUR (Euro). This window should appear like this:</para>
+ <caption><para>Initial setup of 3 bank accounts with different
+ currencies. </para></caption>
+ </mediaobject>
+ </screenshot>
- <screenshot id="currency_selectcurr">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/currency_selectcurr.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Select Euro Commodity</phrase>
- </textobject>
- <caption>
- <para>Price Editor Select Commodity Window</para>
- </caption>
- </mediaobject>
- </screenshot>
-
- <para>Click <guibutton>Ok</guibutton> and in the Select Commodity window, set the exchange rate between the selected commodity and the selected currency. In this example, we will set the exchange rate to 1 EUR to 1 USD.</para>
+ <para>Notice that the "Total (Report)" column is being displayed. This is
+ configured in the column header row, select <guibutton>Arrow
+ down</guibutton> and select <quote>Total(USD)</quote>.</para>
+ </sect1>
- <screenshot id="currency_selectcomm">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/currency_selectcomm.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Select Commodity</phrase>
- </textobject>
- <caption>
- <para>Price Editor Select Commodity Window</para>
- </caption>
- </mediaobject>
- </screenshot>
+ <sect1 id="currency_support1">
+ <title>GnuCash Currency Support</title>
- <screenshot id="currency_peditor">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/currency_peditor.png"
- srccredit="Jon Lapham" format="PNG"/>
+ <para>GnuCash supports over a hundred currencies, from the Andorran Franc
+ to the Zimbabwe Dollar. You will also find supports for some lesser
+ popular currencies like the US Dollar, Canadian Dollar, European Euro, and
+ British Pound.</para>
+ </sect1>
+
+ <sect1 id="currency_prefs1">
+ <title>Setting International Preferences</title>
+
+ <para>GnuCash allows you to specify the following international related
+ preferences</para>
+
+ <itemizedlist>
+ <listitem>
+ <para>Default currency you want the newly created registers to
+ have</para>
+ </listitem>
+
+ <listitem>
+ <para>Default currency for the reports</para>
+ </listitem>
+
+ <listitem>
+ <para>Date and Time formats</para>
+ </listitem>
+
+ <listitem>
+ <para>Euro support</para>
+ </listitem>
+ </itemizedlist>
+
+ <para>For a full explanation of the International Preferences available,
+ see <xref linkend="basics-prefs1" /></para>
+ </sect1>
+
+ <sect1 id="currency_howto1">
+ <title>Recording/Updating Currency Exchange (How-To)</title>
+
+ <para>GnuCash allows you to update the Currency Exchange Rates in two
+ different ways, manual and automatic. In the following two sections we
+ will work through both ways.</para>
+
+ <para>Before we start, lets have a quick look at the Chart of
+ Accounts</para>
+
+ <screenshot id="currency_main1a">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_main1.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Initial multi currency Account Bank Setup</phrase>
+ </textobject>
+
+ <caption><para>Initial setup of 3 bank accounts with different
+ currencies. </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <sect2 id="currency_howto_Manual">
+ <title>Manually Updating Exchange Rates</title>
+
+ <para>Open the Price Editor by going to <guimenu>Tools</guimenu> ->
+ <guimenu>Price Editor</guimenu>.</para>
+
+ <screenshot id="currency_BeforeGetOnlineQuotes">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_BeforeGetOnlineQuotes.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Price Editor window</phrase>
+ </textobject>
+
+ <caption><para>Price Editor Window. </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>Click on the <guibutton>Add</guibutton> button to add a new
+ currency exchange. A window will appear to allow you to select the
+ commodity you wish to define the exchange rate for. Click on
+ <guibutton>Select</guibutton> and set the <guilabel>Type</guilabel> to
+ Currency and the <guilabel>Currency/security</guilabel> to EUR (Euro).
+ This window should appear like this:</para>
+
+ <screenshot id="currency_selectcurr">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_selectcurr.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Select Euro Commodity</phrase>
+ </textobject>
+
+ <caption><para>Price Editor Select Commodity Window</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>Click <guibutton>Ok</guibutton> and in the Select Commodity
+ window, set the exchange rate between the selected commodity and the
+ selected currency. In this example, you will set the exchange rate to 1
+ EUR to 1 USD.</para>
+
+ <screenshot id="currency_selectcomm">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_selectcomm.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Select Commodity</phrase>
+ </textobject>
+
+ <caption><para>Price Editor Select Commodity Window</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <screenshot id="currency_peditor">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_peditor.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Price Editor Window</phrase>
+ </textobject>
+
+ <caption><para>The Price Editor window after setting the exchange
+ rate between Euros and US Dollars</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <screenshot id="currency_main2">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_main2.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Chart of Accounts</phrase>
+ </textobject>
+
+ <caption><para>Chart of Accounts after setting the exchange rate
+ between Euros and US Dollars.</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>Observe that since you have no exchange rate for HKD, GnuCash do
+ not convert the HKD accounts to USD. This will be added in the next
+ section.</para>
+ </sect2>
+
+ <sect2 id="currency_howto_Auto">
+ <title>Automatic Updating Exchange Rates (How-To)</title>
+
+ <para>In the previous section you saw how you could manually define a
+ new currency exchange rate, but there must be an easier way to do it.
+ And there is.</para>
+
+ <para>Open the Price Editor by going to <guimenu>Tools</guimenu> ->
+ <guimenu>Price Editor</guimenu>.</para>
+
+ <screenshot id="currency_BeforeGetOnline">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_peditor.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Price Editor window</phrase>
+ </textobject>
+
+ <caption><para>Price Editor Window before you obtain online quotes.
+ </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>Click on the <guibutton>Get Quotes</guibutton> button to
+ automatically load the various exchange rates you need.</para>
+
+ <note><para>
+ If the <guibutton>Get Quotes</guibutton> button is disabled,
+ that means that the perl module Finance::Quote is not installed.
+ For information on how to install it, please see
+ <xref linkend="invest_stockprice_auto2" ></xref>
+ </para></note>
+
+ <para><screenshot id="currency_AfterGetOnlineQuotes">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_AfterGetOnlineQuotes.png"
+ format="PNG" srccredit="Bengt Thuree" />
</imageobject>
- <textobject>
- <phrase>Price Editor Window</phrase>
- </textobject>
- <caption>
- <para>The Price Editor window after setting the exchange rate between Euros and US Dollars</para>
- </caption>
- </mediaobject>
- </screenshot>
- <screenshot id="currency_main2">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/currency_main2.png"
- srccredit="Jon Lapham" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Account main window</phrase>
- </textobject>
- <caption>
- <para>The main account window after setting the exchange rate between Euros and US Dollars</para>
- </caption>
+ <textobject>
+ <phrase>Price Editor window</phrase>
+ </textobject>
+
+ <caption><para>Price Editor Window after we obtained online
+ quotes. </para></caption>
</mediaobject>
- </screenshot>
+ </screenshot></para>
- </sect1>
- <sect1 id="currency_purchase1">
- <title>Recording Purchases in a Foreign Currency (How-To)</title>
- <para>
- </para>
- </sect1>
- <sect1 id="currency_invest1">
- <title>Tracking Currency Investments (How-To)</title>
- <para>
- </para>
- </sect1>
- <sect1 id="currency_reconcile1">
- <title>Reconciling Statements in a Foreign Currency (How-To)</title>
- <para>
- </para>
- </sect1>
- <sect1 id="currency_update1">
- <title>Updating Exchange Rates (How-To)</title>
- <para>
- </para>
- </sect1>
- <sect1 id="currency_examples1">
- <title>Putting It All Together (Examples)</title>
- <para>
- </para>
- </sect1>
- </chapter>
+ <para>You noticed that GnuCash will download exchange rates for all
+ currencies you are using in your various accounts. This will happend
+ everytime you click on <guibutton>Get Quotes</guibutton> or have GnuCash
+ downloading quotes/exchange rates automatically as per <xref
+ linkend="invest_stockprice_auto2" /></para>
+
+ <para>And if you check the main Chart of Accounts you now see that
+ GnuCash has automatically converted the HKD amount to USD amount on the
+ parent accounts that are in USD, as well as on the Total (USD) column.
+ Also the Euro accounts have been been updated with the latest exchange
+ rate.</para>
+
+ <screenshot id="currency_main3.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_main3.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Price Editor window</phrase>
+ </textobject>
+
+ <caption><para> Chart of Accounts after we obtain online quotes.
+ </para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect2>
+ <sect2 id="currency_howto_disable">
+ <title>How to disable currency retrieval</title>
+ <para>Currency Quote retrieval will start from the time you create an account
+ with a non-default currency. However, it will not stop when you delete these accounts
+ from GnuCash.</para>
+ <para>
+ When you have deleted the last account for one particular currency,
+ and you do not wish to get currency updates for this currency anymore. Do the following;
+ </para>
+ <itemizedlist>
+ <listitem>
+ <para><guimenu>Tools</guimenu> -> <guimenu>Price Editor</guimenu></para>
+ </listitem>
+ <listitem>
+ <para>Expand the CURRENCY row</para>
+ </listitem>
+ <listitem>
+ <para>Double click on the Currency you want to disable Exchange Rate retrieval for.</para>
+ </listitem>
+ <listitem>
+ <para>Unselect the <guilabel>Get Online Quotes</guilabel></para>
+ </listitem>
+ </itemizedlist>
+ </sect2>
+
+ </sect1>
+
+ <sect1 id="currency_purchase1">
+ <title>Recording Purchases in a Foreign Currency (How-To)</title>
+
+ <para>You can do it in two different ways.</para>
+
+ <para>1) Use GnuCash build in currency exchange between accounts when you
+ do your transactions. This is mainly used for one time transactions, and
+ nothing which happens regurarly.</para>
+
+ <para>2) Use separate accounts for this Purchase, where all involved
+ accounts use the same currency. This is the recommended method, since it
+ allows much better tracking and follow up. In this way, you do one
+ currency exchange transaction, and after that you do normal
+ transactions.</para>
+
+ <para>The rest of this section will explain more based upon option
+ 2)</para>
+
+ <sect2 id="currency_purchase2">
+ <title>Purchase of an asset with foreign currency</title>
+
+ <para>Your normal place of residence is in Florida, therefore you are
+ using USD as your default currency. But, you do like to travel to
+ Bahamas and go fishing. You like it so much so you decided to purchase a
+ boat there. To do this, you opened a bank account in Jamaica, moved some
+ money from US, and then purchased your dream boat (smallest
+ version)</para>
+
+ <para>To record this in GnuCash we use the following basic account
+ structure</para>
+
+ <literallayout>
+-Assets (USD)
+ -Current Assets (USD)
+ -US Bank (USD)
+ -Jamaican Bank (EUR)
+ -Fixed Assets
+ -Boat
+-Equity (USD)
+ -Opening Balances
+ -USD (USD)
+ -EUR (HKD)
+
+Note: the currency of each account is shown in parenthesis.
+ </literallayout>
+
+ <para>First you need to transfere some money ($10,000) to Jamaica, and
+ you use your normal US bank account (whith balance of $100,000) for
+ that. The bank give you an exchange rate of USD 1 = JMD 64, but charges
+ you USD 150 to do transfer the money.</para>
+
+ <screenshot id="currency_purchase_MoveMoney.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_purchase_MoveMoney.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Currency transfer</phrase>
+ </textobject>
+
+ <caption><para>Transfer money to Jamaica</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>Select the Jamaica transaction line ($9,850.00), right click and
+ select <guilabel>Edit Exchange Rate</guilabel></para>
+
+ <screenshot id="currency_purchase_SetExchangeRate.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_purchase_SetExchangeRate.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Edit Exchange rate</phrase>
+ </textobject>
+
+ <caption><para>A dialog window where the exchange rate in a currency
+ transaction is specified</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>As Exchange Rate you enter 1 USD = 64 JMD, since this is the rate
+ your bank gave. Press ok in the Transfer Funds (Edit Exchange Rate)
+ window, and then save this split transaction. Below is how it now looks
+ in the main Chart of Accounts.</para>
+
+ <screenshot id="currency_purchase_BeforeBoat.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_purchase_BeforeBoat.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Chart of Accounts before purchasing the boat</phrase>
+ </textobject>
+
+ <caption><para>Chart of Accounts before purchasing the
+ boat</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>You find the boat, and since it's a bargain at JMD 509,000 you
+ decide to buy it. To record this transaction in GnuCash, you will need
+ to enter a simple transaction in Assets:Current Assets:Jamaican Bank
+ withdrawing 509,000 and transfering it to Assets:Fixed
+ Assets:Boat</para>
+
+ <screenshot id="currency_purchase_AfterBoat.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_purchase_AfterBoat.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Chart of Accounts after purchasing the boat</phrase>
+ </textobject>
+
+ <caption><para>Chart of Accounts after purchasing the
+ boat</para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect2>
+
+ <sect2 id="currency_purchase3">
+ <title>Purchasing foreign stocks</title>
+
+ <para>A more complicated example</para>
+
+ <para>This example will show how to deal with having stocks in a
+ different currency than your normal currency.</para>
+
+ <para>In this example you live in America and therefore you have set the
+ default Currency to USD. You decide to purchase some stocks in Hong Kong.
+ </para>
+
+ <para>You would also like to be able to track the various income and
+ expenses per stock and broker.</para>
+
+ <para>The stock you want to purchase are Beijing Airport (Hong Kong)
+ (Afterall the 2008 Olympics in Beijing should bring in a lot of business
+ to the airport)</para>
+
+ <note><para>
+ The above stock (Beijing Airport) are just choosen
+ for this particular example, and should not be taken as any kind of
+ stock purchase advice
+ </para></note>
+
+ <para>You need to find out what the stock ticker is for this
+ stock. To do this, you do a bit of investigation on the Internet, and
+ in particular on <ulink
+ url="http://finance.yahoo.com/lookup"><citetitle>Yahoo! Finance - Ticker
+ Symbol Lookup</citetitle></ulink> (http://finance.yahoo.com/lookup).
+ This gives you the following:</para>
+
+ <itemizedlist>
+ <listitem>
+ <para><emphasis>Beijing Airport</emphasis> has the Stock Symbol
+ 0694.HK at Yahoo</para>
+ </listitem>
+ </itemizedlist>
+
+ <para>Since we wanted to be able to track all various incomes and expenses,
+ we come up with the following Account structure</para>
+
+ <literallayout>
+Assets:Investments:Brokerage Accounts:Boom:0694.HK (Beijing Airport)
+Assets:Investments:Brokerage Accounts:Boom:Bank (HKD)
+Equity:Opening Balances:HKD (HKD)
+Expenses:Commissions:Boom.0694.HK (HKD)
+Income:Investments:Dividend:Boom:0694.HK (HKD)
+ </literallayout>
+
+ <para>The Chart of Accounts looks like this after creating all the
+ needed accounts</para>
+
+ <screenshot id="currency_purchase_BeforeStocks.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_purchase_BeforeStocks.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Chart of Accounts for international stocks</phrase>
+ </textobject>
+
+ <caption><para>Chart of Accounts for international
+ stocks</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>The various commodities (<guimenu>Tools</guimenu> ->
+ <guimenu>Security Editor</guimenu>) looks like this</para>
+
+ <screenshot id="currency_purchase_Commodities.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_purchase_Commodities.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>International commodities</phrase>
+ </textobject>
+
+ <caption><para>International commodities</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <note><para>
+ There is currently a small bug (
+
+ <ulink
+ url="http://bugzilla.gnome.org/show_bug.cgi?id=335101"><citetitle>335101</citetitle>
+ </ulink>
+
+ ) in GnuCash, that makes it impossible to buy a stock in a different currency than the default directly from the commodity account. The simple workaround is to open the associated bank account and enter the transaction from here.
+ </para></note>
+
+ <para>If you have not moved some cash (HKD50,000) to the corresponding stocks bank
+ account, do so now. Either using the Equity (HKD) account, or by transfering
+ money from an existing bank account (Currency Transfer).</para>
+
+ <para>To record this stock purchase, you have to open the stocks associated
+ bank account (Assets:Investments:Brokerage Account:Boom:Bank), and there enter
+ the following information</para>
+<literallayout>
+Buy Stocks
+ Assets:Investments:Brokerage Account:Boom:Bank Withdrawal 50,000
+ Expenses:Investments:Commission:Boom_HKD Deposit 500
+ Assets:Investments:Brokerage Account:Boom:0694 Deposit 49,500 (16,500 shares)
+ </literallayout>
+
+ <para>If the "Exchange Data" dialog popup do not appear, open it
+ manually by right click on the last row, and select <guilabel>Edit
+ Exchange Rate</guilabel> In the following pop up window, enter the
+ actual number of stocks (16,500) in the last entry box (not the
+ default entry box)</para>
+
+ <screenshot id="currency_purchase_ToAmount.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_purchase_ToAmount.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Transfer Funds</phrase>
+ </textobject>
+
+ <caption><para>Setting To Amount in the Transfer Funds dialog</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>When you exit the exchange dialog, and Enter this transaction GnuCash will
+ update the stock purchase transaction with all relevant data.</para>
+
+ <para>If you now go back to the main Chart of Accounts, you will see something like
+ this</para>
+
+ <screenshot id="currency_purchase_AfterStocks.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_purchase_AfterStocks.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Purchased international stocks</phrase>
+ </textobject>
+ <caption><para>
+ Chart of Accounts with some international stocks
+ </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>As you can see, everything is in its own Currency, and this is because GnuCash
+ do not have any exchange rates between USD and HKD. To remedy this go to
+ <guimenu>Tools</guimenu> -> <guimenu>Price Editor</guimenu>
+ and click on the <guibutton>Get Quotes</guibutton> button to
+ automatically load the various exchange rates you need.</para>
+
+ </sect2>
+
+ </sect1>
+
+ <sect1 id="currency_invest1">
+ <title>Tracking Currency Investments (How-To)</title>
+
+ <para>Currency investment is when you decide to invest in different
+ countries currency, and hope that their currency will raise in value
+ relative your own currency.</para>
+
+ <para>When you enter these transactions into GnuCash, you will have to
+ decide on how much details you would like to have.</para>
+
+ <para>If you are not interested in details at all, a very simple account
+ structure would be enough. Something like this;</para>
+
+ <literallayout>
+ Assets:Investments:Currency:Bank (USD)
+ Assets:Investments:Currency:XXX (XXX)</literallayout>
+
+ <para>But, if you do want to be able to track the Capital Gains or Losses,
+ as well as the various fees, you do need a bit more complexed layout.
+ Something like this;</para>
+
+ <literallayout>
+ Assets:Investments:Currency:Bank (USD)
+ Assets:Investments:Currency:Currency Bank:XXX (XXX)
+ Expenses:Investments:Currency:Currency Bank:XXX (XXX)
+ Income:Investments:Currency Bank:Capital Gains:XXX (XXX)</literallayout>
+
+ <para>Where XXX is the currency you are investing in.</para>
+
+ <note><para>
+ There is currently (30 April 2006) a small bug (
+ <ulink url="http://bugzilla.gnome.org/show_bug.cgi?id=340041"><citetitle>340041</citetitle>
+ </ulink>) in GnuCash, that makes it impossible to track currency investments
+ capital gains.
+ </para></note>
+
+ <sect2 id="currency_invest12">
+ <title>Purchasing a currency investment</title>
+
+ <para>A typical purchase order might be something like this, seen from
+ the Assets:Investments:Currency:Bank.</para>
+
+ <para><table>
+ <title>Buying a currency with a Split Transaction Scheme</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry><emphasis>Account</emphasis></entry>
+
+ <entry><emphasis>Deposit</emphasis></entry>
+
+ <entry><emphasis>Withdrawal</emphasis></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Investments:Currency:Bank</entry>
+
+ <entry></entry>
+
+ <entry>Invested Amount</entry>
+ </row>
+
+ <row>
+ <entry>Expenses:Investments:Currency:Currency Bank:XXX</entry>
+
+ <entry>Exchange Fee</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Investments:Currency:XXX</entry>
+
+ <entry>Invested Amount - Exchange Fee</entry>
+
+ <entry></entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table>You should get an Exchange Rate window popping up when you
+ leave the last row in the split above (Currency Transaction). If this
+ window do not pop up, right click on the row, and select <guilabel>Edit
+ Exchange Rate</guilabel>. In the Exchange Rate window you specify the
+ exchange rate you got from the bank.</para>
+ </sect2>
+
+ <sect2 id="currency_invest13">
+ <title>Selling a currency investment</title>
+
+ <para>Entering an currency you are selling is done in the same way as
+ buying one except the you are now transfering money from the Currency
+ account to your Savings account (very much similar to (<xref
+ linkend="invest_sell1" />).</para>
+
+ <para>The proper recording of the currency sale *must* be done using a
+ split transaction. In the split transaction, you must account for the
+ profit (or loss) as coming from an Income:Capital Gains account (or
+ Expense:Capital Loss). To balance this income, you will need to enter
+ the Currency asset twice in the split. Once to record the actual sale
+ (using the correct amount and correct exchange rate) and once to balance
+ the income profit (setting the amount to 0).</para>
+
+ <para>In short, a selling Currency transaction should look something
+ like below, seen again from the Assets:Investments:Currency:Bank.</para>
+
+ <table>
+ <title>Selling a currency with a Split Transaction Scheme</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry><emphasis>Account</emphasis></entry>
+
+ <entry><emphasis>Deposit</emphasis></entry>
+
+ <entry><emphasis>Withdrawal</emphasis></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Investments:Currency:Bank</entry>
+
+ <entry>Sold Amount - Exchange Fee</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Expenses:Investments:Currency:Currency Bank:XXX</entry>
+
+ <entry>Exchange Fee</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Investments:Currency:XXX</entry>
+
+ <entry></entry>
+
+ <entry>Sold Amount</entry>
+ </row>
+
+ <row>
+ <entry>Income:Investments:Currency Bank:Capital
+ Gains:XXX</entry>
+
+ <entry>[LOSS]</entry>
+
+ <entry>PROFIT</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Investments:Currency:XXX</entry>
+
+ <entry>PROFIT (with To Amount = 0)</entry>
+
+ <entry>[LOSS (with To Amount = 0) ]</entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table>
+
+ <note><para>
+ There is currently (30 April 2006) a small bug (
+
+ <ulink url="http://bugzilla.gnome.org/show_bug.cgi?id=340041"><citetitle>340041</citetitle>
+ </ulink>
+
+ ) in GnuCash, that makes it impossible to track currency investments capital gains.
+ </para></note>
+ </sect2>
+ </sect1>
+
+ <sect1 id="currency_reconcile1">
+ <title>Reconciling Statements in a Foreign Currency (How-To)</title>
+
+ <para>Reconciling foreigh statement are done in the same manner as when
+ you reconcile your local bank statement. If you have created a Chart of
+ Accounts structure which allows you to have the same Currency per account
+ as your Reconcile Statement, it is actually exactly the same as
+ reconciling your local bank statement, apart from the fact you might need
+ a dictionary</para>
+
+ <para>If you have different currencies you might have to manually convert
+ the amounts from one currency to another while you reconcile the
+ accounts.</para>
+ </sect1>
+
+ <sect1 id="currency_examples1">
+ <title>Putting It All Together (Examples)</title>
+
+ <para>In this Putting It All Together you will use quite a bit of what you
+ have learned so far in this guide with a bit of a twist. The twist beeing
+ a lot of different currencies.</para>
+
+ <sect2>
+ <title>Basic scenario</title>
+
+ <para>The following are the basic scenarios.</para>
+
+ <itemizedlist>
+ <listitem>
+ <para>You live in Australia and use AUD as our default
+ currency</para>
+ </listitem>
+
+ <listitem>
+ <para>You win the lottery as well as inherit some money</para>
+ </listitem>
+
+ <listitem>
+ <para>You pay of your existing house loan</para>
+ </listitem>
+
+ <listitem>
+ <para>You purchase some stocks in Sweden using SEK (Ericsson
+ B-Fria)</para>
+ </listitem>
+
+ <listitem>
+ <para>You purchase some stocks in HK using HKD (Beijing
+ Airport)</para>
+ </listitem>
+
+ <listitem>
+ <para>You purchase some stocks in US using USD (Amazon)</para>
+ </listitem>
+
+ <!--
+ <listitem>
+ <para>You invest in Chinese Reminbi</para>
+ </listitem>
+-->
+
+ <listitem>
+ <para>You lend some EURO to a friend (Peter)</para>
+ </listitem>
+
+ <listitem>
+ <para>You borrow some money from a Japanese bank</para>
+ </listitem>
+
+ <listitem>
+ <para>You buy a house in New Zealand</para>
+ </listitem>
+
+ <listitem>
+ <para>You use a credit card in Australia</para>
+ </listitem>
+
+ <listitem>
+ <para>You would like to have maximum control of your expenses</para>
+ </listitem>
+
+ </itemizedlist>
+ <note>
+ <para>Again these samples are not to be consider a valid and
+ accurate advice. They are only to be considered as an sample for
+ the techniques used in GnuCash, and not as a Invenstment Advice.
+ Please consult a proper financial advisor for more information
+ regarding international investments/loans.</para>
+ </note>
+
+
+ </sect2>
+
+ <sect2>
+ <title>Configure Accounts</title>
+
+ <para>This time lets start with a fresh and new GnuCash data file, so
+ <guimenu>File</guimenu> -> <guimenuitem>New</guimenuitem>, and edit
+ preferences (<guimenu>Edit</guimenu> -> <guimenuitem>Preferences</guimenuitem>)
+ to set Default Currency as AUD. Since you have
+ decided to be able to track as much of your various expenses and incomes
+ as possile, the following account hierarchy could be used;</para>
+
+ <literallayout>
+Assets:Current Assets:Savings Account (AUD)
+ </literallayout>
+
+ <para></para>
+ </sect2>
+
+
+ <sect2>
+ <title>Opening Balance</title>
+
+ <para>You open the mail one morning, and to your enormous surprise find
+ that you are the last living relative of a very distant relative who
+ happend to be very rich. And also $500,000 AUD richer. That was not the
+ last though, another mail states you won the lottery, and got $250,000
+ AUD for that. </para>
+
+ <para>To record these transaction we need the following accounts</para>
+ <literallayout>
+Equity:Lottery (AUD)
+Equity:Inheritance (AUD)
+ </literallayout>
+
+
+ <para>The transactions you enter into your <guilabel>Income:Current
+ Assets:Savings Account</guilabel> should look like this.</para>
+
+ <table>
+ <title>You come into some extra money</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry>Account</entry>
+
+ <entry>Increase</entry>
+
+ <entry>Decrease</entry>
+ </row>
+
+ <row>
+ <entry>Income:Lottery</entry>
+
+ <entry>$250,000</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Income:Inheritance</entry>
+
+ <entry>$500,000</entry>
+
+ <entry></entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table>
+
+ <para>And the Chart of Accounts looks like this after above transactions have been entered.</para>
+ <screenshot id="currency_PutTogether_AfterMoney.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_PutTogether_AfterMoney.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>Chart Of Accounts</phrase>
+ </textobject>
+ <caption><para>
+ Chart Of Accounts after receiving some money
+ </para></caption>
+ </mediaobject>
+ </screenshot>
+
+
+ </sect2>
+
+ <sect2>
+ <title>Purchase a house</title>
+
+ <para>Atlast you can afford to pay of that house loan you had to take some years ago
+ (with a $50,000 deposit).</para>
+
+ <literallayout>
+Assets:Fixed Assest:House (AUD) $300,000
+Liabilities:Loans:Mortgage (AUD) $250,000
+Expenses:Interest:Mortgage Interest (AUD)
+Equity:Opening Balance (AUD) $50,000
+ </literallayout>
+
+ <para>After you have had a small chat with your Mortgage bank, they
+ agree to let you pay it all of in one go, plus some interest (AUD
+ 30,000). You should enter the following split transaction into
+ <guilabel>Assets:Fixed Assest:House</guilabel> account.</para>
+
+ <table>
+ <title>Paying of the house mortgage</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry>Account</entry>
+
+ <entry>Increase</entry>
+
+ <entry>Decrease</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Current Assets:Savings Account</entry>
+
+ <entry></entry>
+
+ <entry>280000</entry>
+ </row>
+
+ <row>
+ <entry>Expenses:Interest:Mortgage Interest</entry>
+
+ <entry>30000</entry>
+
+ <entry></entry>
+ </row>
+ <row>
+ <entry>Libilities:Loans:Mortgage</entry>
+
+ <entry>250000</entry>
+
+ <entry></entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table>
+
+ <para>The <guilabel>Liabilities:Loans:Mortgage</guilabel> Transaction Ledger looks like
+ this after the transacations have been entered</para>
+
+ <screenshot id="currency_PutTogether_AussieHouse.png">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/currency_PutTogether_AussieHouse.png"
+ format="PNG" srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>House Mortgage</phrase>
+ </textobject>
+ <caption><para>
+ Transaction Ledger of the House Loan
+ </para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect2>
+
+ <sect2>
+ <title>Stock Purchasing</title>
+
+ <para>Since you quite suddenly have a lot of money in your bank account,
+ you decide to visit a Financial Advisor, and after his recommendation
+ (remember, this is fictional - Not a genuine stock purchase advice) you
+ decide to purchase Telecommunication (Ericsson in Sweden), Beijing
+ Airport (Hong Kong), and Amazon (USA).</para>
+
+ <para>The needed accounts to track these investments looks like
+ this.</para>
+
+ <literallayout>
+Assets:Investments:Swedish Broker:ERIC.ST (STOCK ERIC.ST Yahoo)
+Assets:Investments:Swedish Broker:Bank (SEK)
+Assets:Investments:HK Broker:0694.HK (STOCK 0694.HK Yahoo)
+Assets:Investments:HK Broker:Bank (HKD)
+Assets:Investments:US Broker:AMZN (STOCK AMZN Nasdaq)
+Assets:Investments:US Broker:Bank (USD)
+Expenses:Investments:Commissions:Swedish Broker:ERIC.ST (SEK)
+Expenses:Investments:Commissions:HK Broker:0694.HK (HKD)
+Expenses:Investments:Commissions:US Broker:AMZN (USD)
+Expenses:Investments:Currency Transfer (AUD)
+</literallayout>
+
+ <para>You decide to invest $100,000 into each stock, and to do this
+ we first do a currency transaction to the various bank accounts
+ associated with the stock. </para>
+
+ <para>The transaction you enter into your <guilabel>Income:Current
+ Assets:Savings Account</guilabel> should look like this.</para>
+
+ <table>
+ <title>Transfer money to overseas with a multiple currency transaction
+ split.</title>
+
+ <tgroup cols="5">
+ <tbody>
+ <row>
+ <entry>Account</entry>
+
+ <entry>Deposit</entry>
+
+ <entry>Withdrawal</entry>
+
+ <entry>Exchange Rate</entry>
+
+ <entry>Transaction Fee</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Investments:Swedish Broker:Bank</entry>
+
+ <entry>100000</entry>
+
+ <entry></entry>
+
+ <entry>5.5869</entry>
+
+ <entry>35</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Investments:HK Broker:Bank</entry>
+
+ <entry>100000</entry>
+
+ <entry></entry>
+
+ <entry>5.8869</entry>
+
+ <entry>30</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Investments:USD Broker:Bank</entry>
+
+ <entry>100000</entry>
+
+ <entry></entry>
+
+ <entry>0.7593</entry>
+
+ <entry>25</entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table>
+
+ <para>Now when there is some money in the various stock brokerage
+ accounts, you ask each broker to buy stocks for the certain amount.
+ Remember to execute the transaction from the stocks associated bank
+ account, and if the Exchange Rate window do not pop up, right click the
+ row and manually start it. Enter the number of stocks you purchase in
+ the last entry.</para>
+
+ <para><table>
+ <title>Purchasing oversea stocks</title>
+
+ <tgroup cols="4">
+ <tbody>
+ <row>
+ <entry>Stock Symbol</entry>
+
+ <entry>Number of shares</entry>
+
+ <entry>Amount</entry>
+
+ <entry>Commission</entry>
+ </row>
+
+ <row>
+ <entry>ERIC.ST</entry>
+
+ <entry>15000</entry>
+
+ <entry>270000</entry>
+
+ <entry>400</entry>
+ </row>
+
+ <row>
+ <entry>0694.HK</entry>
+
+ <entry>70000</entry>
+
+ <entry>280000</entry>
+
+ <entry>300</entry>
+ </row>
+
+ <row>
+ <entry>AMZN</entry>
+
+ <entry>1000</entry>
+
+ <entry>32000</entry>
+
+ <entry>25</entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table></para>
+ </sect2>
+
+ <sect2>
+ <title>Get the online quotes</title>
+
+ <para>To get the current exchange rates and stock quotes, go to
+ <guimenu>Tools</guimenu> -> <guimenu>Price Editor</guimenu> and the
+ click on <guibutton>Get Quotes</guibutton>. </para>
+
+ <para></para>
+ </sect2>
+
+
+ <sect2>
+ <title>Lending money to a friend</title>
+
+ <para>Peter has run into some difficulties all the way over in Europe
+ Land. Since he is a very dear pal of yours, you decide to help him out
+ with a personal loan of 80,000 Euro. </para>
+
+ <para><literallayout>Assets:Money owed to me:Euro:Peter (Euro)
+Income:Interest Income:Peter (Euro)</literallayout>This is a
+ simpe currency transaction from your Savings Account (AUD), to your
+ Assets:Money owed to me:Peter (EURO) account. </para>
+ </sect2>
+
+ <sect2>
+ <title>Buying property in New Zealand with a loan from Japan</title>
+
+ <para>Your long time Japanese friend offers you a Japanese house loan if
+ you purchase a property overseas, with only AUD 50,000 as deposit. After
+ having discussed this with your Financial Advisor in Australia and gone
+ through the various risks and benefits related to your situation, you
+ decide to accept his offer. </para>
+
+ <note>
+ <para>Again, this should not be taken as a financial advice. Please
+ consult with a registered financial advisor before undertaking
+ investing (or spekulating) in overseas markets, or local markets for
+ that matter.</para>
+
+ <para>A word of warning might be of interest here, taking a loan
+ overseas for a very low interest rate might seem like a very good
+ deal. Do keep in mind though that the exchange rate might change and
+ can change drastically. If you take a loan in your local currency, you
+ only have to worry about the interest rate. Taking a loan overseas,
+ then you have to worry about the interest rate and the exchange rate.
+ </para>
+ </note>
+
+ <para>You found a nice small cottage in a small coastal town near
+ Auckland which would be a perfect summer house, and you decide to use
+ the money from Japan for this purpose.</para>
+
+ <para>We need the following accounts for this example;</para>
+
+ <literallayout>
+Liabilities:Loans:Japan Loan (JPY)
+Expenses:Interest:Japan Loan (JPY)
+Expenses:Mortgage Adm Fees:Japan Loan (JPY)
+Assets:Current Assets:Japan Bank (JPY)
+Assets:Fixed Assest:NZ House (NZ)
+</literallayout>
+
+ <table>
+ <title>Buying a NZ House Split Transaction</title>
+
+ <tgroup cols="3">
+ <tbody>
+ <row>
+ <entry>Account</entry>
+
+ <entry>Increase</entry>
+
+ <entry>Decrease</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Fixed Assets:NZ House</entry>
+
+ <entry>300000 (NZD)</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Current Assets:Savings Account</entry>
+
+ <entry></entry>
+
+ <entry>50000 (AUD) (1.18926)</entry>
+ </row>
+
+ <row>
+ <entry>Liabilities:Loans:Japan Loan</entry>
+
+ <entry></entry>
+
+ <entry>28000000 (JPY) (0.0137609)</entry>
+ </row>
+
+ <row>
+ <entry>Expenses:Mortgage Adm Fees:Japan Loan</entry>
+
+ <entry>300000 (JPY) (0.0137609)</entry>
+
+ <entry></entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table>
+
+
+ </sect2>
+
+ <sect2>
+ <title>Whats next?</title>
+ <para>As you have seen in the above examples you have only done the initial purchases.
+ The rest, that is various selling, and unrealized gains tracking is left for you to
+ ponder upon.</para>
+ </sect2>
+
+
+ </sect1>
+
+</chapter>
\ No newline at end of file
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===================================================================
--- gnucash-docs/trunk/guide/C/ch_invest.xml 2006-05-07 00:38:45 UTC (rev 13937)
+++ gnucash-docs/trunk/guide/C/ch_invest.xml 2006-05-07 05:36:07 UTC (rev 13938)
@@ -1,7 +1,10 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!DOCTYPE chapter PUBLIC "-//OASIS//DTD DocBook XML V4.1.2//EN"
+"http://www.oasis-open.org/docbook/xml/4.1.2/docbookx.dtd">
<!--
(Do not remove this comment block.)
Version: 2.0.0
- Last modified: April 19th 2006
+ Last modified: April 27, 2006
Version: 1.8.4
Last modified: April 10th 2004
Maintainers:
@@ -13,209 +16,287 @@
Translators:
(translators put your name and email here)
-->
- <chapter id="chapter8">
- <title>Investments</title>
- <para>
- This chapter explains how to manage your investments with GnuCash. Most people have an investment plan, whether its just putting money into a CD account, investing through a company sponsored plan at your workplace or buying and selling stocks and bonds through a brokerage. GnuCash gives you tools to help you manage these investments such as the <emphasis>Price Editor </emphasis> which allows you to record changes in the prices of stocks you own.
- </para>
- <sect1 id="invest_concepts1">
- <title>Basic Concepts</title>
- <para>
-An investment is something that you purchase in the hopes of generating income, or that you hope to sell in the future for more than you paid. Using this simple definition, many things could be considered investments: the house you live in, a valuable painting, stocks in publicly traded companies, your savings account at the bank, or a certificate of deposit. These many types of investments will be discussed in this chapter in terms of how to track them using GnuCash.
- </para>
+<chapter id="chapter8">
+ <title>Investments</title>
- <sect2 id="invest_terms2">
- <title>Terminology</title>
- <para>
-Before discussing investments specifically, it will be helpful to present a glossary of investment terminology. The terms presented below represent some of the basic concepts of investing. It is a good idea to become familiar with these terms, or at least, refer back to this list if you encounter an unfamiliar word in the later sections.
- </para>
+ <para>This chapter explains how to manage your investments with GnuCash.
+ Most people have an investment plan, whether its just putting money into a
+ CD account, investing through a company sponsored plan at your workplace or
+ buying and selling stocks and bonds through a brokerage. GnuCash gives you
+ tools to help you manage these investments such as the <emphasis>Price
+ Editor </emphasis> which allows you to record changes in the prices of
+ stocks you own.</para>
- <itemizedlist>
+ <sect1 id="invest_concepts1">
+ <title>Basic Concepts</title>
- <listitem>
- <para>
-<emphasis>Capital gains</emphasis> is the difference between the purchase and selling prices of an investment. If the selling price is lower than the purchase price, this is called a <emphasis>capital loss</emphasis>. Also known as <emphasis>realized gain/loss</emphasis>.
- </para>
- </listitem>
+ <para>An investment is something that you purchase in the hopes of
+ generating income, or that you hope to sell in the future for more than
+ you paid. Using this simple definition, many things could be considered
+ investments: the house you live in, a valuable painting, stocks in
+ publicly traded companies, your savings account at the bank, or a
+ certificate of deposit. These many types of investments will be discussed
+ in this chapter in terms of how to track them using GnuCash.</para>
- <listitem>
- <para>
-<emphasis>Commission</emphasis> is the fee you pay to a broker to buy or sell securities.
- </para>
- </listitem>
+ <sect2 id="invest_terms2">
+ <title>Terminology</title>
- <listitem>
- <para>
-<emphasis>Common stock</emphasis> is a security that represents a certain fractional ownership of a company. This is what you buy when you "buy stock" in a company on the open market. This is also sometimes known as <emphasis>capital stock</emphasis>.
- </para>
- </listitem>
+ <para>Before discussing investments specifically, it will be helpful to
+ present a glossary of investment terminology. The terms presented below
+ represent some of the basic concepts of investing. It is a good idea to
+ become familiar with these terms, or at least, refer back to this list
+ if you encounter an unfamiliar word in the later sections.</para>
- <listitem>
- <para>
-<emphasis>Compounding</emphasis> is the concept that the reinvested interest can later earn interest of its own (interest on interest). This is often referred to as <emphasis>compound interest</emphasis>.
- </para>
- </listitem>
+ <itemizedlist>
+ <listitem>
+ <para><emphasis>Capital gains</emphasis> is the difference between
+ the purchase and selling prices of an investment. If the selling
+ price is lower than the purchase price, this is called a
+ <emphasis>capital loss</emphasis>. Also known as <emphasis>realized
+ gain/loss</emphasis>.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Dividends</emphasis> are cash payments a company makes to shareholders. The amount of this payment is usually determined as some amount of the profits of the company. Note that not all common stocks give dividends.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Commission</emphasis> is the fee you pay to a broker
+ to buy or sell securities.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Equities</emphasis> are investments in which the investor becomes part (or whole) owner in something. This includes common stock in a company, or real estate.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Common stock</emphasis> is a security that
+ represents a certain fractional ownership of a company. This is what
+ you buy when you "buy stock" in a company on the open market. This
+ is also sometimes known as <emphasis>capital
+ stock</emphasis>.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Interest</emphasis> is what a borrower pays a lender for the use of their money. Normally, this is expressed in terms of a percentage of the principal per year. For example, a savings account with 1% interest (you are the lender, the bank is the borrower) will pay you $1 for every $100 you keep there per year.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Compounding</emphasis> is the concept that the
+ reinvested interest can later earn interest of its own (interest on
+ interest). This is often referred to as <emphasis>compound
+ interest</emphasis>.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Liquidity</emphasis> is a measure of how easily convertible an investment is to cash. Money in a savings account is very liquid, while money invested in a house has low liquidity because it takes time to sell a house.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Dividends</emphasis> are cash payments a company
+ makes to shareholders. The amount of this payment is usually
+ determined as some amount of the profits of the company. Note that
+ not all common stocks give dividends.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Principal</emphasis> is the original amount of money invested or borrowed.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Equities</emphasis> are investments in which the
+ investor becomes part (or whole) owner in something. This includes
+ common stock in a company, or real estate.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Realized vs Unrealized Gain/Loss</emphasis>, unrealized gain or loss occurs when you've got a change in price of an asset. You realize the gain/loss when you actually sell the asset. See also <emphasis>capital gain/loss</emphasis>.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Interest</emphasis> is what a borrower pays a lender
+ for the use of their money. Normally, this is expressed in terms of
+ a percentage of the principal per year. For example, a savings
+ account with 1% interest (you are the lender, the bank is the
+ borrower) will pay you $1 for every $100 you keep there per
+ year.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Return</emphasis> is the total income plus capital gains or losses of an investment. See also <emphasis>Yield</emphasis>.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Liquidity</emphasis> is a measure of how easily
+ convertible an investment is to cash. Money in a savings account is
+ very liquid, while money invested in a house has low liquidity
+ because it takes time to sell a house.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Risk</emphasis> is the probability that the return on investment is different from what was expected. Investments are often grouped on a scale from low risk (savings account, government bonds) to high risk (common stock, junk bonds). As a general rule of thumb, the higher the risk the higher the possible return.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Principal</emphasis> is the original amount of money
+ invested or borrowed.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Shareholder</emphasis> is a person who holds common stock in a company.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Realized vs Unrealized Gain/Loss</emphasis>,
+ unrealized gain or loss occurs when you've got a change in price of
+ an asset. You realize the gain/loss when you actually sell the
+ asset. See also <emphasis>capital gain/loss</emphasis>.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Stock split</emphasis> occurs when a company offers to issue some additional multiple of shares for each existing stock. For example, a "2 for 1" stock split means that if you own 100 shares of a stock, you will receive an additional 100 at no cost to you. The unit price of the shares will be adjusted so there is no net change in the value, so in this example the price per share will be halved.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Return</emphasis> is the total income plus capital
+ gains or losses of an investment. See also
+ <emphasis>Yield</emphasis>.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Valuation</emphasis> is the process of determining the market value or the price the investment would sell at in a <quote>reasonable time frame</quote>.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Risk</emphasis> is the probability that the return
+ on investment is different from what was expected. Investments are
+ often grouped on a scale from low risk (savings account, government
+ bonds) to high risk (common stock, junk bonds). As a general rule of
+ thumb, the higher the risk the higher the possible return.</para>
+ </listitem>
- <listitem>
- <para>
-<emphasis>Yield</emphasis> is a measure of the amount of money you earn from an investment (IE: how much income you receive from the investment). Typically this is reported as a percentage of the principal amount. Yield does not include capital gains or loses (see Return). Eg: A stock sells for $100 and gives $2 in dividends per year has a yield of 2%.
- </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Shareholder</emphasis> is a person who holds common
+ stock in a company.</para>
+ </listitem>
- </itemizedlist>
- </sect2>
+ <listitem>
+ <para><emphasis>Stock split</emphasis> occurs when a company offers
+ to issue some additional multiple of shares for each existing stock.
+ For example, a "2 for 1" stock split means that if you own 100
+ shares of a stock, you will receive an additional 100 at no cost to
+ you. The unit price of the shares will be adjusted so there is no
+ net change in the value, so in this example the price per share will
+ be halved.</para>
+ </listitem>
+ <listitem>
+ <para><emphasis>Valuation</emphasis> is the process of determining
+ the market value or the price the investment would sell at in a
+ <quote>reasonable time frame</quote>.</para>
+ </listitem>
- <sect2 id="invest_types2">
- <title>Types of Investments</title>
- <para>
-Below is presented some of the broad types of investments available, and examples of each type.
- </para>
- <itemizedlist>
- <listitem>
- <para>
-<emphasis>Interest-bearing account or instrument</emphasis>
- </para>
- <para>
-This type of investment usually allows you immediate access to your money, and will typically pay you interest every month based on the amount of money you have deposited. Examples are bank savings accounts (and some interest bearing checking accounts) and cash accounts at your brokerage. This is a very low risk investment, in the US these accounts are often insured against loss, to a specified limit.
- </para>
- <para>
-Sometimes an interest bearing investment is <emphasis>time-locked</emphasis>. This type of investment requires you to commit your money to be invested for a given period of time for which you receive a set rate of return. Usually, the longer you commit the higher the interest rates. If you withdraw your money before the maturity date, you will usually have to pay an early withdrawal penalty. This is a relatively lower risk investment. Examples are certificates of deposit or some government bonds. Other types of Bonds may have higher yields based on the higher risks from the quality of the issuer's <quote>credit rating</quote>.
- </para>
- </listitem>
- <listitem>
- <para>
-<emphasis>Stocks and Mutual Funds</emphasis>
- </para>
- <para>
-This is an investment you make in a company, in which you effectively become a part owner. There is usually no time lock on publicly traded stock, however there may be changes in the tax rates you pay on capital gains depending on how long you hold the stock. Thus, stocks are typically quite liquid, you can access your money relatively quickly. This investment is a higher risk, as you have no guarantee on the future price of a stock.
- </para>
- <para>
-A mutual fund is a group investment mechanism in which you can buy into many stocks simultaneously. For example, a "S&P 500 index fund" is a fund which purchases all 500 stocks listed in the Standard and Poor's index. When you buy a share of this fund, you are really buying a small amount of each of the 500 stocks contained within the fund. Mutual funds are treated exactly like a single stock, both for tax purposes and in accounting.
- </para>
- </listitem>
- <listitem>
- <para>
-<emphasis>Fixed Assets</emphasis>
- </para>
- <para>
-An asset that increases in value over time are another form of investment. Examples include a house, a plot of land, or a valuable painting. This type of investment is very difficult to determine the value of until you sell it. The tax implications of selling these items is varied, depending on the item. For example, you may have tax relief from selling a house if it is your primary residence, but may would not receive this tax break on an expensive painting.
- </para>
- <para>Fixed asset investments are discussed in the chapter on "Depreciation and Capital Gains". Typically, there is not much to do in terms of accounting for fixed asset investments except recording the buying and selling transactions.</para>
- </listitem>
- </itemizedlist>
+ <listitem>
+ <para><emphasis>Yield</emphasis> is a measure of the amount of money
+ you earn from an investment (IE: how much income you receive from
+ the investment). Typically this is reported as a percentage of the
+ principal amount. Yield does not include capital gains or loses (see
+ Return). Eg: A stock sells for $100 and gives $2 in dividends per
+ year has a yield of 2%.</para>
+ </listitem>
+ </itemizedlist>
+ </sect2>
- </sect2>
- </sect1>
+ <sect2 id="invest_types2">
+ <title>Types of Investments</title>
- <sect1 id="invest_accounts1">
- <title>Setting Up Accounts</title>
- <para>
-To setup investment accounts in GnuCash you can either use the predefined investment account hierarchy or create your own. The minimum you need to do to track investments is to setup an asset account for each type of investment you own. However, as we have seen in previous chapters, it is usually more logical to create a structured account hierarchy, grouping related investments together. For example, you may want to group all your publicly traded stocks under a parent account named after the brokerage firm you used to buy the stocks.
- </para>
+ <para>Below is presented some of the broad types of investments
+ available, and examples of each type.</para>
- <para>
-Regardless of how you setup your account hierarchy, remember that you can always move accounts around later (without losing the work you've put into them), so your initial account hierarchy does not have to be perfect.
- </para>
+ <itemizedlist>
+ <listitem>
+ <para><emphasis>Interest-bearing account or
+ instrument</emphasis></para>
- <sect2 id="invest_predefined2">
- <title>Predefined Accounts</title>
- <para>
-To use the predefined investment account hierarchy, you <emphasis>must</emphasis> create a new GnuCash file. This will run the <guilabel>New Account Hierarchy Setup</guilabel> druid. After choosing the default currency to use, you will be asked to <guilabel>Choose accounts to create</guilabel>. At this point, choose the "Investment Accounts" option (along with any others you are interested in). Assuming only <quote>Investing Accounts</quote> were selected, this will create an account hierarchy as shown below.
- </para>
+ <para>This type of investment usually allows you immediate access to
+ your money, and will typically pay you interest every month based on
+ the amount of money you have deposited. Examples are bank savings
+ accounts (and some interest bearing checking accounts) and cash
+ accounts at your brokerage. This is a very low risk investment, in
+ the US these accounts are often insured against loss, to a specified
+ limit.</para>
- <screenshot id="invest_AccountsPredef">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_AccountsPredef"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Setup Interest Investment</phrase>
- </textobject>
- <caption>
- <para>This is an screen image of the "Accounts" tab after creating a new file and selecting only the default investment accounts.
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <para>Sometimes an interest bearing investment is
+ <emphasis>time-locked</emphasis>. This type of investment requires
+ you to commit your money to be invested for a given period of time
+ for which you receive a set rate of return. Usually, the longer you
+ commit the higher the interest rates. If you withdraw your money
+ before the maturity date, you will usually have to pay an early
+ withdrawal penalty. This is a relatively lower risk investment.
+ Examples are certificates of deposit or some government bonds. Other
+ types of Bonds may have higher yields based on the higher risks from
+ the quality of the issuer's <quote>credit rating</quote>.</para>
+ </listitem>
- <para>
-You will probably at least want to add a <emphasis>Bank</emphasis> account to the Assets and probably an <emphasis>Equity:Starting Balances</emphasis> account, as we have done in previous chapters. Don't forget to save your new account file with a relevant name!
- </para>
- </sect2>
+ <listitem>
+ <para><emphasis>Stocks and Mutual Funds</emphasis></para>
- <sect2 id="invest_custom2">
- <title>Custom Accounts Example</title>
- <para>
-You can also manually setup your own investment account hierarchy. The following is a somewhat more complicated example of setting up GnuCash to track your investments, which has the advantage that it groups each different investment under the brokerage that deals with the investments. This way it is easier to compare the statements you get from your brokerage with the accounts you have in GnuCash and spot where GnuCash differs from the statement.
- <literallayout>
+ <para>This is an investment you make in a company, in which you
+ effectively become a part owner. There is usually no time lock on
+ publicly traded stock, however there may be changes in the tax rates
+ you pay on capital gains depending on how long you hold the stock.
+ Thus, stocks are typically quite liquid, you can access your money
+ relatively quickly. This investment is a higher risk, as you have no
+ guarantee on the future price of a stock.</para>
+
+ <para>A mutual fund is a group investment mechanism in which you can
+ buy into many stocks simultaneously. For example, a "S&P 500
+ index fund" is a fund which purchases all 500 stocks listed in the
+ Standard and Poor's index. When you buy a share of this fund, you
+ are really buying a small amount of each of the 500 stocks contained
+ within the fund. Mutual funds are treated exactly like a single
+ stock, both for tax purposes and in accounting.</para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Fixed Assets</emphasis></para>
+
+ <para>An asset that increases in value over time are another form of
+ investment. Examples include a house, a plot of land, or a valuable
+ painting. This type of investment is very difficult to determine the
+ value of until you sell it. The tax implications of selling these
+ items is varied, depending on the item. For example, you may have
+ tax relief from selling a house if it is your primary residence, but
+ may would not receive this tax break on an expensive
+ painting.</para>
+
+ <para>Fixed asset investments are discussed in the chapter on
+ "Depreciation and Capital Gains". Typically, there is not much to do
+ in terms of accounting for fixed asset investments except recording
+ the buying and selling transactions.</para>
+ </listitem>
+ </itemizedlist>
+ </sect2>
+ </sect1>
+
+ <sect1 id="invest_accounts1">
+ <title>Setting Up Accounts</title>
+
+ <para>To setup investment accounts in GnuCash you can either use the
+ predefined investment account hierarchy or create your own. The minimum
+ you need to do to track investments is to setup an asset account for each
+ type of investment you own. However, as we have seen in previous chapters,
+ it is usually more logical to create a structured account hierarchy,
+ grouping related investments together. For example, you may want to group
+ all your publicly traded stocks under a parent account named after the
+ brokerage firm you used to buy the stocks.</para>
+
+ <para>Regardless of how you setup your account hierarchy, remember that
+ you can always move accounts around later (without losing the work you've
+ put into them), so your initial account hierarchy does not have to be
+ perfect.</para>
+
+ <sect2 id="invest_predefined2">
+ <title>Predefined Accounts</title>
+
+ <para>To use the predefined investment account hierarchy, you
+ <emphasis>must</emphasis> create a new GnuCash file. This will run the
+ <guilabel>New Account Hierarchy Setup</guilabel> druid. After choosing
+ the default currency to use, you will be asked to <guilabel>Choose
+ accounts to create</guilabel>. At this point, choose the "Investment
+ Accounts" option (along with any others you are interested in). Assuming
+ only <quote>Investment Accounts</quote> were selected, this will create
+ an account hierarchy as shown below.</para>
+
+ <screenshot id="invest_accountspredef">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_accountspredef.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Setup Interest Investment</phrase>
+ </textobject>
+
+ <caption><para>This is an screen image of the "Accounts" tab after
+ creating a new file and selecting only the default investment
+ accounts. </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>You will probably at least want to add a <emphasis>Bank</emphasis>
+ account to the Assets and probably an <emphasis>Equity:Opening
+ Balance</emphasis> account, as we have done in previous chapters. Don't
+ forget to save your new account file with a relevant name!</para>
+ </sect2>
+
+ <sect2 id="invest_custom2">
+ <title>Custom Accounts Example</title>
+
+ <para>You can also manually setup your own investment account hierarchy.
+ The following is a somewhat more complicated example of setting up
+ GnuCash to track your investments, which has the advantage that it
+ groups each different investment under the brokerage that deals with the
+ investments. This way it is easier to compare the statements you get
+ from your brokerage with the accounts you have in GnuCash and spot where
+ GnuCash differs from the statement. <literallayout>
Assets
Investments
Brokerage Accounts
@@ -263,28 +344,37 @@
Management Fees
I*Trade
My Stockbroker
- </literallayout>
- </para>
- <para>
-There really is no unique way to set up your investment account hierarchy. Play around, try different layouts until you find something which divides your investment accounts into logical groups which make sense to you.
- </para>
+ </literallayout></para>
- </sect2>
- </sect1>
+ <para>There really is no unique way to set up your investment account
+ hierarchy. Play around, try different layouts until you find something
+ which divides your investment accounts into logical groups which make
+ sense to you.</para>
+ </sect2>
+ </sect1>
+ <sect1 id="invest_int1">
+ <title>Interest Bearing Accounts</title>
- <sect1 id="invest_int1">
- <title>Interest Bearing Accounts</title>
- <para>
-Investments which have a fixed or variable rate of interest are one of the simplest and most common form of investments available. Interest bearing investments include your bank account, a certificate of deposit, or any other kind of investment in which you receive interest from the principal. This section will describe how to handle these kinds of investments in GnuCash.
- </para>
- <sect2 id="invest_intacct2">
- <title>Account Setup</title>
- <para>
-When you purchase the interest bearing investment, you must create an asset account to record the purchase of the investment, an income account to record earnings from interest, and an expense account to record bank charges. Below is an account layout example, in which you have an interest bearing savings account and a certificate of deposit at your bank.
- </para>
- <literallayout>
-Asset
+ <para>Investments which have a fixed or variable rate of interest are one
+ of the simplest and most common form of investments available. Interest
+ bearing investments include your bank account, a certificate of deposit,
+ or any other kind of investment in which you receive interest from the
+ principal. This section will describe how to handle these kinds of
+ investments in GnuCash.</para>
+
+ <sect2 id="invest_intacct2">
+ <title>Account Setup</title>
+
+ <para>When you purchase the interest bearing investment, you must create
+ an asset account to record the purchase of the investment, an income
+ account to record earnings from interest, and an expense account to
+ record bank charges. Below is an account layout example, in which you
+ have an interest bearing savings account and a certificate of deposit at
+ your bank.</para>
+
+ <literallayout>
+Assets
Bank ABC
CD
Savings
@@ -295,91 +385,128 @@
Bank ABC
Interest
</literallayout>
- <para>
-As usual, this account hierarchy is simply presented as an example, you should create your accounts in a form which best matches your actual situation.
- </para>
- </sect2>
- <sect2 id="invest_intex2">
- <title>Example</title>
- <para>
-Now let's populate these accounts with real numbers. Let's assume that you start with $10000 in your bank account, which pays 1% interest and you buy a $5000 certificate of deposit with a 6 month maturity date and a 2% yield. Clearly, it is much better to keep your money in the CD than in the savings account. After the initial purchase, your accounts should look something like this:
- </para>
- <screenshot id="invest_int">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_int1.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Setup Interest Investment</phrase>
- </textobject>
- <caption>
- <para>This is an image of the account register after the creation and investing in a CD investment.
- </para>
- </caption>
- </mediaobject>
- </screenshot>
- <para>
-Now, during the course of the next 6 month, you receive monthly bank statements which describe the activity of your account. In our fictional example, we do nothing with the money at this bank, so the only activity is income from interest and bank charges. The monthly bank charges are $2. After 6 months, the register window for the CD should look like this:
- </para>
- <screenshot id="invest_int2">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_int2.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Setup Interest Investment</phrase>
- </textobject>
- <caption>
- <para>This is an image of the register of the CD account after 6 months.
- </para>
- </caption>
- </mediaobject>
- </screenshot>
- <para>
-And this is the main GnuCash window:
- </para>
- <screenshot id="invest_int3">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_int3.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Setup Interest Investment</phrase>
- </textobject>
- <caption>
- <para>This a screen capture of the accounts after 6 months.
- </para>
- </caption>
- </mediaobject>
- </screenshot>
- <para>
-From the above image of the main GnuCash account window you see a nice summary of what happened to these investments over the 6 months. While the yield on the CD is double that of the savings account, the return on the CD was $50.21 versus $13.03 for the savings account, or almost 4 times more. Why? Because of the pesky $2 bank charges that hit the savings account (which counted for $12 over 6 months).
- </para>
- <para>
-After this 6 month period, the CD has reached maturity which means you may sell it with no early withdrawal penalty. To do so, simply transfer the $5050.21 from the CD account into the savings account.
- </para>
- </sect2>
- </sect1>
+ <para>As usual, this account hierarchy is simply presented as an
+ example, you should create your accounts in a form which best matches
+ your actual situation.</para>
+ </sect2>
- <sect1 id="invest_setup1">
- <title>Setup Stock Portfolio</title>
- <para>
-Now that you have built an account hierarchy in the previous section, this section will show you how to populate the accounts with your stock portfolio. During this initial setup of your portfolio, you may have stocks purchased from before you started using GnuCash. For these stocks, follow the instructions in the <emphasis>Setup Your Preexisting Stocks</emphasis> section below. If your have just purchased your stocks, then use the <emphasis>Buying New Stocks</emphasis> section.
- </para>
+ <sect2 id="invest-intex2">
+ <title>Example</title>
- <sect2 id="invest_setup_stockaccounts2">
- <title>Setup Accounts for Stocks and Mutual Funds</title>
- <para>
-This section will show you how to add stocks and mutual fund accounts to GnuCash. In this section, we will assume you are using the basic predefined account setup introduced in the previous section, but the principles can be applied to any account hierarchy.
- </para>
- <para>
-You should have within the top level <guilabel>Asset</guilabel> account, a few levels down, an account entitled <guilabel>Stock</guilabel>. Open the account tree to this level by clicking on the <quote>right facing triangle marker</quote> signs next to the account names until the tree is opened to the depth of the new account. You will need to create a sub-account (of type <emphasis>stock</emphasis>) under the Stock account for every stock you own. Every stock is a separate account. The naming of these stock accounts is usually done using the stock ticker abbreviation. So, for example, you could name your accounts <emphasis>AMZN</emphasis>, <emphasis>IBM</emphasis> and <emphasis>NST</emphasis> for your Amazon, IBM and NSTAR stocks respectively. Below is a schematic model of the layout (only showing the Assets sub-accounts).
- </para>
- <literallayout>
+ <para>Now let's populate these accounts with real numbers. Let's assume
+ that you start with $10000 in your bank account, which pays 1% interest
+ and you buy a $5000 certificate of deposit with a 6 month maturity date
+ and a 2% yield. Clearly, it is much better to keep your money in the CD
+ than in the savings account. After the initial purchase, your accounts
+ should look something like this:</para>
+
+ <screenshot id="invest-int">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_int1.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Setup Interest Investment</phrase>
+ </textobject>
+
+ <caption><para>This is an image of the account register after the
+ creation and investing in a CD investment. </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>Now, during the course of the next 6 month, you receive monthly
+ bank statements which describe the activity of your account. In our
+ fictional example, we do nothing with the money at this bank, so the
+ only activity is income from interest and bank charges. The monthly bank
+ charges are $2. After 6 months, the register window for the CD should
+ look like this:</para>
+
+ <screenshot id="invest-int2">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_int2.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Setup Interest Investment</phrase>
+ </textobject>
+
+ <caption><para>This is an image of the register of the CD account
+ after 6 months. </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>And this is the main GnuCash window:</para>
+
+ <screenshot id="invest-int3">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_int3.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Setup Interest Investment</phrase>
+ </textobject>
+
+ <caption><para>This a screen capture of the accounts after 6 months.
+ </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>From the above image of the main GnuCash account window you see a
+ nice summary of what happened to these investments over the 6 months.
+ While the yield on the CD is double that of the savings account, the
+ return on the CD was $50.21 versus $13.03 for the savings account, or
+ almost 4 times more. Why? Because of the pesky $2 bank charges that hit
+ the savings account (which counted for $12 over 6 months).</para>
+
+ <para>After this 6 month period, the CD has reached maturity which means
+ you may sell it with no early withdrawal penalty. To do so, simply
+ transfer the $5050.21 from the CD account into the savings
+ account.</para>
+ </sect2>
+ </sect1>
+
+ <sect1 id="invest-setup1">
+ <title>Setup Investment Portfolio</title>
+
+ <para>Now that you have built an account hierarchy in the previous
+ section, this section will show you how to create and populate the accounts with your
+ investment portfolio. After this initial setup of your portfolio, you may have
+ shares of stock purchased from before you started using GnuCash. For these stocks,
+ follow the instructions in the <link linkend="invest-buy-stock2"><emphasis>Entering
+ Preexisting Shares</emphasis></link> section below. If your have just purchased your stocks,
+ then use the <link linkend="invest-buy-new2"><emphasis>Buying New Shares</emphasis></link> section.</para>
+
+ <sect2 id="invest-setup-stockaccounts2">
+ <title>Setup Accounts for Stocks and Mutual Funds</title>
+
+ <para>This section will show you how to add stocks and mutual fund
+ accounts to GnuCash. In this section, we will assume you are using the
+ basic account setup introduced in the previous section, but
+ the principles can be applied to any account hierarchy.</para>
+
+ <para>You should have within the top level <guilabel>Asset</guilabel>
+ account, a few levels down, an account entitled
+ <guilabel>Stock</guilabel>. Open the account tree to this level by
+ clicking on the <quote>right facing triangle marker</quote> signs next
+ to the account names until the tree is opened to the depth of the new
+ account. You will need to create a sub-account (of type
+ <emphasis>stock</emphasis>) under the Stock account for every stock you
+ own. Every stock is a separate account. The naming of these stock
+ accounts is usually done using the stock ticker abbreviation, though account
+ names may be anything that is clear to you and other users. So, for
+ example, you could name your accounts <emphasis>AMZN</emphasis>,
+ <emphasis>IBM</emphasis> and <emphasis>NST</emphasis> for your Amazon,
+ IBM and NSTAR stocks respectively. Below is a schematic model of the
+ layout (only showing the Assets sub-accounts).</para>
+
+ <literallayout>
Assets
Investments
Brokerage Accounts
@@ -392,676 +519,1122 @@
NST
</literallayout>
- <note>
- <para>If you want to track income (dividends/interest/capital gains) on a per-stock or fund basis, you will need to create an Income:Dividends:STOCKSYMBOL, Income:Cap Gain (Long):STOCKSYMBOL, Income:Cap Gain (Short):STOCKSYMBOL and Income:Interest:STOCKSYMBOL account for each stock you own that pays dividends or interest.</para>
- </note>
- </sect2>
+ <note>
+ <para>If you want to track income (dividends/interest/capital gains)
+ on a per-stock or fund basis, you will need to create an
+ Income:Dividends:STOCKSYMBOL, Income:Cap Gain (Long):STOCKSYMBOL,
+ Income:Cap Gain (Short):STOCKSYMBOL and Income:Interest:STOCKSYMBOL
+ account for each stock you own that pays dividends or interest.</para>
+ </note>
+ </sect2>
- <sect2 id="invest_setup_example2">
- <title>Example Stock Account</title>
+ <sect2 id="invest-setup-example2">
+ <title>Example Stock Account</title>
- <para>As an example, let's assume that you currently own 100 shares of Amazon stock. First, create the stock account AMZN by selecting the <guilabel>Stock</guilabel> account and click on the menu <guimenu>File</guimenu> -> <guimenu>New Account</guimenu>. The New Account dialog will appear, follow the steps, in the sequence below to setup your new stock account.</para>
+ <para>As an example, let's assume that you currently own 100 shares of
+ Amazon stock. First, create the stock account AMZN by selecting the
+ <guilabel>Stock</guilabel> account and click on the menu
+ <guimenu>File</guimenu> -> <guimenu>New Account</guimenu>. The New
+ Account dialog will appear, follow the steps, in the sequence below to
+ setup your new stock account.</para>
- <screenshot id="invest_newaccount">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_newaccount.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>New Account Window</phrase>
- </textobject>
- <caption>
- <para>New Account Window
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <screenshot id="invest-newaccount">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_newaccount.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
- <orderedlist>
+ <textobject>
+ <phrase>New Account Window</phrase>
+ </textobject>
- <listitem>
- <para><emphasis>Account Name</emphasis> - Usually, use the stock ticker abbreviation, IE: <quote>AMZN</quote></para>
- </listitem>
+ <caption><para>New Account Window </para></caption>
+ </mediaobject>
+ </screenshot>
- <listitem>
- <para><emphasis>Account Code</emphasis> - Optional field, use CUSIP, the newspaper listing symbol, mutual fund family ID or code of your own choosing.</para>
- </listitem>
+ <orderedlist>
+ <listitem>
+ <para><emphasis>Account Name</emphasis> - Usually, use the stock
+ ticker abbreviation, IE: <quote>AMZN</quote></para>
+ </listitem>
- <listitem>
- <para><emphasis>Description</emphasis> - Optional field for detailed description of the commodity/stock. Note this field by default is displayed in the Account tab tree.</para>
- </listitem>
+ <listitem>
+ <para><emphasis>Account Code</emphasis> - Optional field, use CUSIP,
+ the newspaper listing symbol, mutual fund family ID or code of your
+ own choosing.</para>
+ </listitem>
- <listitem>
- <para><emphasis>Account Type</emphasis> - Select the type of account you are creating from the lower left-hand list.</para>
- </listitem>
+ <listitem>
+ <para><emphasis>Description</emphasis> - Optional field for detailed
+ description of the commodity/stock. Note this field by default is
+ displayed in the Account tab tree.</para>
+ </listitem>
- <listitem>
- <para><emphasis>Parent Account</emphasis> - Select the parent account for the new account from the right hand listing. Expand list of accounts if necessary.</para>
- </listitem>
+ <listitem>
+ <para><emphasis>Account Type</emphasis> - Select the type of account
+ you are creating from the lower left-hand list.</para>
+ </listitem>
- <listitem>
- <para><emphasis>Create the New Security</emphasis> - To use a new stock, you must create the stock as a new commodity</para>
+ <listitem>
+ <para><emphasis>Parent Account</emphasis> - Select the parent
+ account for the new account from the right hand listing. Expand list
+ of accounts if necessary.</para>
+ </listitem>
- <itemizedlist>
- <listitem>
- <para><emphasis>Select Security/Currency</emphasis> - Click on the <quote>Select ...</quote> button next to the <guilabel>security/currency</guilabel> line. We must change the security from the default (your default currency) to this specific stock. This will bring up the <quote>Select Security</quote> dialog.</para>
- </listitem>
+ <listitem>
+ <para><emphasis>Create the New Security</emphasis> - To use a new
+ stock, you must create the stock as a new commodity</para>
- <listitem>
- <para><emphasis>Type</emphasis> - Change the <guilabel>type</guilabel> from current to the exchange where the security/commodity is traded (in this example NASDAQ). </para>
+ <itemizedlist>
+ <listitem>
+ <para><emphasis>Select Security/Currency</emphasis> - Click on
+ the <quote>Select ...</quote> button next to the
+ <guilabel>security/currency</guilabel> line. We must change the
+ security from the default (your default currency) to this
+ specific stock. This will bring up the <quote>Select
+ Security</quote> dialog.</para>
+ </listitem>
- <para>Select the <quote>New</quote> Button to open the <quote>New Security</quote> window.</para>
+ <listitem>
+ <para><emphasis>Type</emphasis> - Change the
+ <guilabel>type</guilabel> from current to the exchange where the
+ security/commodity is traded (in this example NASDAQ).</para>
- <screenshot id="invest_selectsecurity">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_selectsecurity.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Select Security Window</phrase>
- </textobject>
- <caption>
- <para>Select Security Window
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <para>Select the <quote>New</quote> Button to open the
+ <quote>New Security</quote> window.</para>
- </listitem>
+ <screenshot id="invest-selectsecurity">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_selectsecurity.png"
+ format="PNG" srccredit="Dave Herman" ></imagedata>
+ </imageobject>
- <listitem>
- <para><emphasis>Create the Security</emphasis> - Click on the <guilabel>New...</guilabel> button and enter the appropriate information for this stock on the new form <guilabel>New Security</guilabel>.</para>
+ <textobject>
+ <phrase>Select Security Window</phrase>
+ </textobject>
-<!-- Open inter most loop (#3)
+ <caption><para>Select Security Window </para></caption>
+ </mediaobject>
+ </screenshot>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Create the Security</emphasis> - Click on the
+ <guilabel>New...</guilabel> button and enter the appropriate
+ information for this stock on the new form <guilabel>New
+ Security</guilabel>.</para>
+
+ <!-- Open inter most loop (#3)
-->
- <itemizedlist>
- <listitem>
- <para>The <guilabel>Full name:</guilabel> is <quote>Amazon.com Inc</quote>, the <guilabel>Symbol/abbreviation:</guilabel> is <quote>AMZN</quote>.</para>
- </listitem>
- <listitem>
- <para>The <guilabel>Type:</guilabel> should already be <quote>NASDAQ</quote>.</para>
- </listitem>
+ <itemizedlist>
+ <listitem>
+ <para>The <guilabel>Full name:</guilabel> is
+ <quote>Amazon.com Inc</quote>.</para>
+ </listitem>
- <listitem>
- <para>The <guilabel>CUSIP or other code</guilabel> is where you can enter some other coding number or text (leave it blank in this example).</para>
- </listitem>
+ <listitem>
+ <para>The <guilabel>Symbol/abbreviation:</guilabel> is
+ <quote>AMZN</quote>. The symbol is the stock ticket used in your
+ quote source several lines down on the form. Note that different
+ symbols will be utilized on different price sources for the same stock,
+ an example is Ericsson on the Stockholm Exchange is ERIC-B while
+ on Yahoo it is ERRICB.ST</para>
+ </listitem>
- <listitem>
- <para>The <guilabel>Fraction traded</guilabel> should be adjusted to the smallest fraction of this security which can be traded, usually 1/100 or 1/10000.</para>
- </listitem>
+ <listitem>
+ <para>The <guilabel>Type:</guilabel> should already be
+ <quote>NASDAQ</quote>.</para>
+ </listitem>
- <listitem>
- <para>The box <quote>Get On-line Quotes</quote> and the quote source and the timezone should be selected to define the sources for updating prices on-line. See Also <quote>Setting Stock Price Automatically</quote>.</para>
+ <listitem>
+ <para>The <guilabel>CUSIP or other code</guilabel> is where
+ you can enter some other coding number or text (leave it
+ blank in this example).</para>
+ </listitem>
- <para>Below is what this window should look like when finished:
- <screenshot id="invest_newsecurity">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_newsecurity.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>New Security Window</phrase>
- </textobject>
- <caption>
- <para>New Security Window
- </para>
- </caption>
- </mediaobject>
- </screenshot>
- </para>
- </listitem>
+ <listitem>
+ <para>The <guilabel>Fraction traded</guilabel> should be
+ adjusted to the smallest fraction of this security which can
+ be traded, usually 1/100 or 1/10000.</para>
+ </listitem>
- <listitem>
- <para><emphasis>Save Security</emphasis> - Click on the <guilabel>OK</guilabel> button to save this new security, this will close the <quote>New Security</quote> window and return to the <quote>New Account</quote> window.</para>
- </listitem>
+ <listitem>
+ <para>The box <quote>Get On-line Quotes</quote> and the
+ quote source and the timezone should be selected to define
+ the sources for updating prices on-line. See Also
+ <link linkend="invest-stockprice-auto2">
+ <quote>Setting Stock Price Automatically</quote></link>.</para>
- </itemizedlist>
-<!-- Close inter most loop
+ <para> If the <quote>Get On-Line Quotes</quote> is not highlighted, and it
+ is not tickable, then the Finance::Quote package is not installed.
+ See the section on
+ <link linkend="invest-stockprice-auto-install3">
+ <quote>Installing Finance::Quote</quote></link>.</para>
+
+ <para>Below is what this window should look like when
+ finished: <screenshot id="invest-newsecurity">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_newsecurity.png"
+ format="PNG" srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>New Security Window</phrase>
+ </textobject>
+
+ <caption><para>New Security Window </para></caption>
+ </mediaobject>
+ </screenshot></para>
+ </listitem>
+
+ <listitem>
+ <para><emphasis>Save Security</emphasis> - Click on the
+ <guilabel>OK</guilabel> button to save this new security,
+ this will close the <quote>New Security</quote> window and
+ return to the <quote>New Account</quote> window.</para>
+ </listitem>
+ </itemizedlist>
+
+ <!-- Close inter most loop
-->
- </listitem>
+ </listitem>
-<!-- Close loop #2
+ <!-- Close loop #2
-->
+ </itemizedlist>
+ </listitem>
- </itemizedlist>
- </listitem>
+ <listitem>
+ <para><emphasis>Select the Security</emphasis> - you should now see
+ the newly created security available in the pull down menu for
+ <guilabel>Security/Currency</guilabel>. Select it (it is probably
+ already selected) and click on <guilabel>OK</guilabel>.</para>
+ </listitem>
- <listitem>
- <para><emphasis>Select the Security</emphasis> - you should now see the newly created security available in the pull down menu for <guilabel>Security/Currency</guilabel>. Select it (it is probably already selected) and click on <guilabel>OK</guilabel>.</para>
- </listitem>
+ <listitem>
+ <para><emphasis>Smallest Fraction</emphasis> - Specify the smallest
+ fraction of the security/commodity that is traded.</para>
+ </listitem>
- <listitem>
- <para><emphasis>Smallest Fraction</emphasis> - Specify the smallest fraction of the security/commodity that is traded.</para>
- </listitem>
+ <listitem>
+ <para><emphasis>Notes</emphasis> - Enter any notes or messages
+ related to this security/commodity.</para>
+ </listitem>
- <listitem>
- <para><emphasis>Notes</emphasis> - Enter any notes or messages related to this security/commodity. </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Tax Related</emphasis> - Check box if this account's
+ transactions will relate to Tax Reports.</para>
+ </listitem>
- <listitem>
- <para><emphasis>Tax Related</emphasis> - Check box if this account's transactions will relate to Tax Reports. </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Placeholder</emphasis> - Check box if this account
+ is a <quote>Placeholder</quote>, that is it will contain no
+ transactions.</para>
+ </listitem>
- <listitem>
- <para><emphasis>Placeholder</emphasis> - Check box if this account is a <quote>Placeholder</quote>, that is it will contain no transactions. </para>
- </listitem>
+ <listitem>
+ <para><emphasis>Finished</emphasis> - You should now have been
+ automatically returned to the New Account dialog, with the
+ <guilabel>symbol/abbreviation:</guilabel> line set to <quote>AMZN
+ (Amazon.com Inc)</quote>. Click on <guilabel>OK</guilabel> to save
+ this new stock account.</para>
+ </listitem>
- <listitem>
- <para><emphasis>Finished</emphasis> - You should now have been automatically returned to the New Account dialog, with the <guilabel>symbol/abbreviation:</guilabel> line set to <quote>AMZN (Amazon.com Inc)</quote>. Click on <guilabel>OK</guilabel> to save this new stock account.</para>
- </listitem>
-
-<!--
+ <!--
Outer list can now be closed
-->
+ </orderedlist>
- </orderedlist>
+ <para>You have now created the Amazon stock account, your main account
+ should look something like this (notice that there are a few extra
+ accounts here, a bank account, and an equity account):</para>
- <para>You have now created the Amazon stock account, your main account should look something like this (notice that there are a few extra accounts here, a bank account, and an equity account):</para>
- <screenshot id="invest_setup_current">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_setup_current.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Setup Current Portfolio</phrase>
- </textobject>
- <caption>
- <para>This image is after the creation of the first stock account
- </para>
- </caption>
- </mediaobject>
- </screenshot>
- <para>
-Open the account register window for this AMZN stock account (double click on it). Here you see the <emphasis role="strong">Portfolio</emphasis> view. This gives you an overview of your stock portfolio including the number of shares bought and sold. Obviously, we have not bought or sold any stocks yet, so the Portfolio view should not contain any transactions.
- </para>
+ <screenshot id="invest-setup-current">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_setup_current.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
- </sect2>
+ <textobject>
+ <phrase>Setup Current Portfolio</phrase>
+ </textobject>
- </sect1>
+ <caption><para>This image is after the creation of the first stock
+ account (AMZN)</para></caption>
+ </mediaobject>
+ </screenshot>
- <sect1 id="invest_buy_stock1">
- <title>Buying Shares</title>
+ <para>Open the account register window for this AMZN stock account
+ (double click on it). Here you see the <emphasis
+ role="strong">Portfolio</emphasis> view. This gives you an overview of
+ your stock portfolio including the number of shares bought and sold.
+ Obviously, we have not bought or sold any stocks yet, so the Portfolio
+ view should not contain any transactions.</para>
+ </sect2>
+ </sect1>
- <sect2 id="invest_buy_stock2">
- <title>Entering Preexisting Stock</title>
+ <sect1 id="invest-buy-stock1">
+ <title>Buying Shares</title>
- <para>
-To register the initial 100 shares of this stock that you purchased previously, on the first transaction line, enter the date of the purchase (eg: Jan. 1 2001), a description (eg: Initial Purchase), transfer from <emphasis>Equity: Opening Balances</emphasis>, Shares (eg: 100), and Price (eg: $20). You do not need to fill in the <guilabel>Buy</guilabel> column, as it will be calculated for you. Your AMZN Portfolio view should now appear like this:
- </para>
- <screenshot id="invest_setup_portfolio1">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_setup_portfolio1.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Setup Current Portfolio</phrase>
- </textobject>
- <caption>
- <para>This image the creation of the first stock account</para>
- </caption>
- </mediaobject>
- </screenshot>
- <para>
-Notice that the <guilabel>Balance</guilabel> is in the units of the commodity (AMZN shares) not in currency units. Thus, the balance is 100 (AMZN units) rather than $2000. This is how it should be.
- </para>
- </sect2>
+ <sect2 id="invest-buy-stock2">
+ <title>Entering Preexisting Shares</title>
- <sect2 id="invest_setup_new2">
- <title>Buying New Investments</title>
- <para>
-The only difference between setting up a new investment purchase versus the setup for preexisting stocks as described in the previous section is that instead of transferring the money used to purchase the stock from the Equity:Starting Balances account, you use your Asset:Bank account.
- </para>
- </sect2>
+ <para>To register the initial 100 shares of this stock that you
+ purchased previously, on the first transaction line, enter the date of
+ the purchase (eg: Jan. 1 2001), a description (eg: Initial Purchase),
+ transfer from <emphasis>Equity: Opening Balances</emphasis>, Shares (eg:
+ 100), and Price (eg: $20). You do not need to fill in the
+ <guilabel>Buy</guilabel> column, as it will be calculated for you. This example
+ assumed there was no commission on this transaction to simplify the example. Your
+ AMZN Portfolio view should now appear like this:</para>
- </sect1>
+ <screenshot id="invest-setup-portfolio1">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_setup_portfolio1.png"
+ format="PNG" srccredit="Dave Herman" ></imagedata>
+ </imageobject>
- <sect1 id="invest_stockprice1">
- <title>Setting Share Price</title>
- <para>
-The value of a commodity, such as a stock, must be explicitly set. The stock accounts track the quantity of stocks you own, but the value of the stock is stored in the <emphasis>Price Editor</emphasis>. The values set in the Price Editor can be updated manually or automatically.
- </para>
+ <textobject>
+ <phrase>Setup Current Portfolio</phrase>
+ </textobject>
- <sect2 id="invest_stockprice_initial2">
- <title>Initial Price Editor Setup</title>
- <para>To use the Price Editor to track a stock value, you must initially insert the stock. To do so, open the Price Editor (<guimenu>Tools</guimenu> -> <guimenu>Price Editor</guimenu>) and click on <guibutton>Add</guibutton> button. The first time a Commodity/Stock is entered this window will be blank except for the control buttons on the bottom. Select the appropriate Commodity you want to insert into the Price Editor. At this point, you can input the price of the commodity manually. There are 5 fields in the New Commodity window:</para>
- <itemizedlist>
- <listitem>
- <para><guilabel>Commodity</guilabel> - the name of the commodity, must be chosen from the <guibutton>Select...</guibutton> list</para>
- </listitem>
- <listitem>
- <para><guilabel>Currency</guilabel> - the currency in which the Price is expressed.</para>
- </listitem>
- <listitem>
- <para><guilabel>Date</guilabel> - date that the price is valid</para>
- </listitem>
- <listitem>
- <para><guilabel>Type</guilabel> - one of: <guilabel>Bid</guilabel> (the market buying price), <guilabel>Ask</guilabel> (the market selling price), <guilabel>Last</guilabel> (the last transaction price), <guilabel>Net Asset Value</guilabel> (mutual fund price per share), or <guilabel>Unknown</guilabel>. Stocks and currencies will usually give their quotes as one of bid, ask or last. Mutual funds are often given as net asset value. For other commodities, simply choose "Unknown". This option is for informational purposes only, it is not used by GnuCash.</para>
- </listitem>
- <listitem>
- <para><guilabel>Price</guilabel> - the price of one unit of this commodity.</para>
- </listitem>
- </itemizedlist>
-
- <para>As an example of adding the AMZN commodity to the price editor, with an initial value of $40.50 per share.</para>
- <screenshot id="invest_peditor">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_peditor.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Price Editor</phrase>
- </textobject>
- <caption>
- <para>Adding the AMZN commodity to the price editor, with an initial value of $40.50 per share.</para>
- </caption>
- </mediaobject>
- </screenshot>
+ <caption><para>This image is of the transaction register of the AMZN account
+ after the first stock account <quote>purchase</quote>.</para></caption>
+ </mediaobject>
+ </screenshot>
- <para>Click <guibutton>OK</guibutton> when finished. Once you have performed this initial placement of the commodity into the Price Editor, you will not have to do it again, even if you use the same commodity in another account.</para>
- </sect2>
+ <para>Notice that the <guilabel>Balance</guilabel> is in the units of
+ the commodity (AMZN shares) not in currency units. Thus, the balance is
+ 100 (AMZN units) rather than $2000. This is how it should be.</para>
+ </sect2>
- <sect2 id="invest_stockprice_manual2">
- <title>Setting Stock Price Manually</title>
- <para>
-If the value of the commodity (stock) changes, you can adjust the value by entering the Price Editor, selecting the commodity, clicking on <guibutton>edit</guibutton> and entering the new price.
- </para>
+ <sect2 id="invest-buy-new2">
+ <title>Buying New Shares</title>
- <screenshot id="invest_peditor2">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_peditor2.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Price Editor</phrase>
- </textobject>
- <caption>
- <para>The main price editor window, showing the list of all known commodities.</para>
- </caption>
- </mediaobject>
- </screenshot>
- </sect2>
+ <para>The only difference between setting up a new stock purchase
+ versus the setup for preexisting stocks as described in the previous
+ section is that instead of transferring the money used to purchase the
+ stock from the Equity:Opening Balance account, you use your Assets:Bank ABC
+ account.</para>
- <sect2 id="invest_stockprice_auto2">
- <title>Setting Stock Price Automatically</title>
- <para>If you have more than a couple of commodities, you will tire of having to update their prices constantly. GnuCash has the ability to automatically download the most recent price for your commodities using the Internet. This is accomplished through the Perl module Finance::Quote, which must be installed in order to activate this feature.
- </para>
- <para>To determine if the Perl module Finance::Quote is already installed on your system, type <quote>perldoc Finance::Quote</quote> in a terminal window and check to see if there is any documentation available. If you see the documentation, then the module is installed, if you do not see the documentation, then it has not been installed.</para>
- <sect3 id="invest_stockprice_auto_install3">
- <title>Installing Finance::Quote</title>
- <para>To install Finance::Quote begin by first closing any GnuCash applications you have running. Second, locate the folder where GnuCash is installed by searching for "gnc-fq-update" (without the quotes). Change to that directory, open a root shell and run the command <quote>gnc-fq-update</quote> (without the quotation marks). This will launch a Perl CPAN update session that will go out onto the Internet and install the Finance::Quote module on your system. The gnc-fq-update program is interactive, however, with most systems you should be able to answer "no" to the first question: <quote>Are you ready for manual configuration? [yes]</quote> and the update will continue automatically from that point.</para>
- <para>After installation is complete, you should run the "gnc-fq-dump" test program, in the same directory, distributed with GnuCash to test if Finance::Quote is installed and working properly.</para>
- <note>
- <para>If you feel uncomfortable about performing any of these steps, please either email the GnuCash-user mailing list (gnucash-user at gnucash.org) for help or come to the GnuCash IRC channel on irc.gnome.org. You can also leave out this step and manually update your stock prices.</para>
- </note>
- </sect3>
- <sect3 id="invest_stockprice_auto_configure3">
- <title>Configuring Finance::Quote</title>
- <para>With Finance::Quote installed and functioning correctly, you must configure your GnuCash stock accounts to use this feature to obtain updated price information automatically. For stock accounts that have already been setup, <guibutton>edit</guibutton> the account and select the <guilabel>Get On-line Quotes</guilabel> box. You should now be able to modify the pop-up menus <guilabel>The source for price quotes</guilabel> and <guilabel>The timezone for these quotes</guilabel>. When finished editing the stock account, return to the price editor and click on the <guibutton>Get Quotes</guibutton> button to update your stock prices on the Internet.</para>
- <para>The command "gnucash --add-price-quotes $HOME/gnucash.xac" can be used to fetch the current prices of your stocks. This can be automated by creating a crontab entry. For example, to update your file every Friday evening after the Wall Street markets close (modify the time accordingly for your time zone), you could add the following to your personal crontab:</para>
-<para>0 16 * * 5 gnucash --add-price-quotes $HOME/gnucash.xac > /dev/null 2>&1 </para>
- <para>Remember that Mutual Fund "prices" are really "Net Asset Value" and require several hours after the exchange closes before being available. If prices are downloaded before the current days NAV is determined, yesterday's NAV is retrieved.
- </para>
+ <para>Now you will purchase $5000 of IBM stock, with a commission of $100. First
+ step will be to create the stock account for IBM. The existing Expense:Commission
+ account will be used. If you wish to track commissions to the individual stock
+ an additional sub-account would be necessary.</para>
- </sect3>
- </sect2>
+ <para>Now for the transaction, on the first transaction line, enter the date of
+ the purchase (eg: Jan. 3 2005), a description (eg: Initial Purchase),
+ Shares will be skipped (to be calculated), Price (eg: $96.60), and Buy ($5000).
+ You do not need to fill in the <guilabel>Share</guilabel> column, as it will be
+ calculated for you. The next line in the split transaction will be
+ <quote>Expense:Commission</quote> and fill in Buy ($100).
+ The third line will be to transfer from <emphasis>Assets:Bank ABC:Saving</emphasis>,
+ $5100 to balance the transaction.
+ Your IBM Portfolio view should now appear like this:</para>
- <sect2 id="invest_stockprice_view2">
-<title>Displaying Share Value</title>
- <para>
-The main account window will by default only shows the quantity of each commodity that you own, under the column heading <guilabel>Total</guilabel>. In the case of stocks, this commodity is the number of shares. Often, however, you will want to see the value of your stocks expressed in terms of some monetary unit. This is easily accomplished by entering the main window, selecting
-the "Accounts" tab, by clicking on the title bar <guibutton>Options</guibutton> button, and selecting the option to display the account total field <quote>Total (USD)</quote>. You will see a new column in the main window entitled <guilabel>Total (USD)</guilabel> that will express the value of all commodities in the report currency.
- </para>
+ <screenshot id="invest-setup-portfolio2">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_setup_portfolio2.png"
+ format="PNG" srccredit="Dave Herman" ></imagedata>
+ </imageobject>
- <screenshot id="invest_stockvalue">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_stockvalue.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Viewing Stock Value</phrase>
- </textobject>
- <caption>
- <para>Viewing the value of a stock commodity in the main window using the Total in Report Currency option.</para>
- </caption>
- </mediaobject>
- </screenshot>
+ <textobject>
+ <phrase>Setup Current Portfolio</phrase>
+ </textobject>
- </sect2>
+ <caption><para>This image is of the transaction register of the IBM account
+ after the first stock account <quote>purchase</quote> with a commission.</para>
+ </caption>
+ </mediaobject>
+ </screenshot>
- <sect2 id="invest_stockprice_report">
- <title>Making Stock Value Reports</title>
- <para>
-GnuCash offers three alternatives to determine stock prices in reports:
- </para>
+ </sect2>
+ </sect1>
- <screenshot id="invest_stockvalue_report_options">
+ <sect1 id="invest-stockprice1">
+ <title>Setting Share Price</title>
+
+ <para>The value of a commodity, such as a stock, must be explicitly set.
+ The stock accounts track the quantity of stocks you own, but the value of
+ the stock is stored in the <emphasis>Price Editor</emphasis>. The values
+ set in the Price Editor can be updated manually or automatically.</para>
+
+ <sect2 id="invest-stockprice-initial2">
+ <title>Initial Price Editor Setup</title>
+
+ <para>To use the Price Editor to track a stock value, you must initially
+ insert the stock. To do so, open the Price Editor
+ (<guimenu>Tools</guimenu> -> <guimenu>Price Editor</guimenu>) and
+ click on <guibutton>Add</guibutton> button. The first time a
+ Commodity/Stock is entered this window will be blank except for the
+ control buttons on the bottom. Select the appropriate Commodity you want
+ to insert into the Price Editor. At this point, you can input the price
+ of the commodity manually. There are 5 fields in the New Commodity
+ window:</para>
+
+ <itemizedlist>
+ <listitem>
+ <para><guilabel>Commodity</guilabel> - the name of the commodity,
+ must be chosen from the <guibutton>Select...</guibutton> list</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Currency</guilabel> - the currency in which the
+ Price is expressed.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Date</guilabel> - date that the price is
+ valid</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Type</guilabel> - one of: <guilabel>Bid</guilabel>
+ (the market buying price), <guilabel>Ask</guilabel> (the market
+ selling price), <guilabel>Last</guilabel> (the last transaction
+ price), <guilabel>Net Asset Value</guilabel> (mutual fund price per
+ share), or <guilabel>Unknown</guilabel>. Stocks and currencies will
+ usually give their quotes as one of bid, ask or last. Mutual funds
+ are often given as net asset value. For other commodities, simply
+ choose "Unknown". This option is for informational purposes only, it
+ is not used by GnuCash.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Price</guilabel> - the price of one unit of this
+ commodity.</para>
+ </listitem>
+ </itemizedlist>
+
+ <para>As an example of adding the AMZN commodity to the price editor,
+ with an initial value of $40.50 per share.</para>
+
+ <screenshot id="invest-peditor">
<mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_stockvalue_report_options.png"
- srccredit="Tomas Pospisek" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Determining Stock Price Source in Reports</phrase>
- </textobject>
- <caption>
- <para>Determining the value of a stock commodity in a report by setting the Price Source option.</para>
- </caption>
+ <imageobject>
+ <imagedata fileref="figures/invest_peditor.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Price Editor</phrase>
+ </textobject>
+
+ <caption><para>Adding the AMZN commodity to the price editor, with
+ an initial value of $40.50 per share.</para></caption>
</mediaobject>
- </screenshot>
+ </screenshot>
- <itemizedlist>
- <listitem>
- <para><guilabel>Weighted Average</guilabel> - gives you a graph of the weighted price of all <emphasis>transactions</emphasis>. It will <emphasis>not</emphasis> take into account prices defined in the price editor.</para>
- </listitem>
- <listitem>
- <para><guilabel>Most recent</guilabel> - displays the changing value of your stocks based solely on <emphasis>the most recent</emphasis> price available from the price editor. The price figuring in your stock transactions is <emphasis>not</emphasis> considered.</para>
- </listitem>
- <listitem>
- <para><guilabel>Nearest in time</guilabel> - the graph is exclusively based on the prices available from the price editor. The value of your stock at each step and point in time is calculated based on the nearest available price in the price editor.</para>
- </listitem>
- </itemizedlist>
+ <para>Click <guibutton>OK</guibutton> when finished. Once you have
+ performed this initial placement of the commodity into the Price Editor,
+ you will not have to do it again, even if you use the same commodity in
+ another account.</para>
+ </sect2>
- <screenshot id="invest_stockvalue_report">
+ <sect2 id="invest-stockprice-manual2">
+ <title>Setting Stock Price Manually</title>
+
+ <para>If the value of the commodity (stock) changes, you can adjust the
+ value by entering the Price Editor, selecting the commodity, clicking on
+ <guibutton>edit</guibutton> and entering the new price.</para>
+
+ <screenshot id="invest-peditor2">
<mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_stockvalue_report.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>An Asset Barchart Report based on the <guilabel>Nearest in time</guilabel> Price Source.</phrase>
- </textobject>
- <caption>
- <para>Tracking what value your stocks would've had on the stock exchanges.</para>
- </caption>
+ <imageobject>
+ <imagedata fileref="figures/invest_peditor2.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Price Editor</phrase>
+ </textobject>
+
+ <caption><para>The main price editor window, showing the list of all
+ known commodities.</para></caption>
</mediaobject>
- </screenshot>
+ </screenshot>
+ </sect2>
- </sect2>
+ <sect2 id="invest-stockprice-auto2">
+ <title>Setting Stock Price Automatically</title>
+ <para>If you have more than a couple of commodities, you will tire of
+ having to update their prices constantly. GnuCash has the ability to
+ automatically download the most recent price for your commodities using
+ the Internet. This is accomplished through the Perl module
+ Finance::Quote, which must be installed in order to activate this
+ feature.</para>
+
+ <para>To determine if the Perl module Finance::Quote is already
+ installed on your system, type <quote>perldoc Finance::Quote</quote> in
+ a terminal window and check to see if there is any documentation
+ available. If you see the documentation, then the module is installed,
+ if you do not see the documentation, then it has not been
+ installed.</para>
+
+ <sect3 id="invest-stockprice-auto-install3">
+ <title>Installing Finance::Quote</title>
+
+ <para>To install Finance::Quote begin by first closing any GnuCash
+ applications you have running. Second, locate the folder where GnuCash
+ is installed by searching for <quote>gnc-fq-update</quote> (without the quotes).
+ Change to that directory, open a root shell and run the command
+ <quote>gnc-fq-update</quote> (without the quotation marks). This will
+ launch a Perl CPAN update session that will go out onto the Internet
+ and install the Finance::Quote module on your system. The
+ gnc-fq-update program is interactive, however, with most systems you
+ should be able to answer <quote>no</quote> to the first question: <quote>Are you
+ ready for manual configuration? [yes]</quote> and the update will
+ continue automatically from that point.</para>
+
+ <para>After installation is complete, you should run the <quote>gnc-fq-dump</quote>
+ test program, in the same directory, distributed with GnuCash to test
+ if Finance::Quote is installed and working properly.</para>
+
+ <note>
+ <para>If you feel uncomfortable about performing any of these steps,
+ please either email the GnuCash-user mailing list
+ (gnucash-user at gnucash.org) for help or come to the GnuCash IRC
+ channel on irc.gnome.org. You can also leave out this step and
+ manually update your stock prices.</para>
+ </note>
+ </sect3>
+
+ <sect3 id="invest-stockprice-auto-configure3">
+ <title>Configuring Finance::Quote</title>
+
+ <para>With Finance::Quote installed and functioning correctly, you
+ must configure your GnuCash stock accounts to use this feature to
+ obtain updated price information automatically. For stock accounts
+ that have already been setup, <guibutton>edit</guibutton> the account
+ and select the <guilabel>Get On-line Quotes</guilabel> box. You should
+ now be able to modify the pop-up menus <guilabel>The source for price
+ quotes</guilabel> and <guilabel>The timezone for these
+ quotes</guilabel>. When finished editing the stock account, return to
+ the price editor and click on the <guibutton>Get Quotes</guibutton>
+ button to update your stock prices on the Internet.</para>
+
+ <para>The command <quote>gnucash --add-price-quotes $HOME/gnucash-filename</quote>
+ can be used to fetch the current prices of your stocks. The file specified
+ <quote>$HOME/gnucash-filename</quote> will depend on the name and location of your
+ data file.
+ This can be determined by <quote>File -> Open -> Open</quote> the highlighted
+ file name will be highlighted, the directory path will be displayed above
+ the file listings. The file name can also be found <quote>File -></quote> the item
+ numbered 1 is the name of the currently open file.</para>
+
+ <para>This can be automated by creating a crontab entry. For example,
+ to update your file every Friday evening (16:00) after the relevant exchange
+ markets close (modify the time accordingly for your time zone), you could add
+ the following to your personal crontab:</para>
+
+ <para>0 16 * * 5 gnucash --add-price-quotes $HOME/gnucash-filename >
+ /dev/null 2>&1</para>
+
+ <para>Remember that Mutual Fund <quote>prices</quote> are really <quote>Net Asset
+ Value</quote> and require several hours after the exchange closes before being
+ available. If NAVs are downloaded before the current days NAVs are
+ determined, yesterday's NAVs are retrieved.</para>
+ </sect3>
+ </sect2>
+
+ <sect2 id="invest-stockprice-view2">
+ <title>Displaying Share Value</title>
+
+ <para>The main account window, by default, only shows the quantity of
+ each commodity that you own, under the column heading
+ <guilabel>Total</guilabel>. In the case of stocks, this commodity is the
+ number of shares. Often, however, you will want to see the value of your
+ stocks expressed in terms of some monetary unit. This is easily
+ accomplished by entering the main window, selecting the <quote>Accounts</quote> tab,
+ by clicking on the title bar <guibutton>Options</guibutton> button (the small
+ down pointing arrow on the right side of the main account window titles bar), and
+ selecting the option to display the account total field <quote>Total
+ (USD)</quote>. You will see a new column in the main window entitled
+ <guilabel>Total (USD)</guilabel> that will express the value of all
+ commodities in the report currency.</para>
+
+ <screenshot id="invest-stockvalue">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_stockvalue.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Viewing Stock Value</phrase>
+ </textobject>
+
+ <caption><para>Viewing the value of a stock commodity in the main
+ window using the Total in Report Currency option.</para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect2>
+
+ <sect2 id="invest-stockprice-report">
+ <title>Making Stock Value Reports</title>
+
+ <para>GnuCash offers three alternatives to determine stock prices in
+ reports:</para>
+
+ <screenshot id="invest-stockvalue-report-options">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_stockvalue_report_options.png"
+ format="PNG" srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Determining Stock Price Source in Reports</phrase>
+ </textobject>
+
+ <caption><para>Determining the value of a stock commodity in a
+ report by setting the Price Source option.</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <itemizedlist>
+ <listitem>
+ <para><guilabel>Weighted Average</guilabel> - gives you a graph of
+ the weighted price of all <emphasis>transactions</emphasis>. It will
+ <emphasis>not</emphasis> take into account prices defined in the
+ price editor.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Most recent</guilabel> - displays the changing value
+ of your stocks based solely on <emphasis>the most recent</emphasis>
+ price available from the price editor. The price figuring in your
+ stock transactions is <emphasis>not</emphasis> considered.</para>
+ </listitem>
+
+ <listitem>
+ <para><guilabel>Nearest in time</guilabel> - the graph is
+ exclusively based on the prices available from the price editor. The
+ value of your stock at each step and point in time is calculated
+ based on the nearest available price in the price editor.</para>
+ </listitem>
+ </itemizedlist>
+
+ <screenshot id="invest-stockvalue-report">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_stockvalue_report.png"
+ format="PNG" srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>An Asset Barchart Report based on the <guilabel>Nearest in
+ time</guilabel> Price Source.</phrase>
+ </textobject>
+
+ <caption><para>Tracking what value your stocks would've had on the
+ stock exchanges.</para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect2>
</sect1>
- <sect1 id="invest_sell1">
- <title>Selling Shares</title>
- <para>Entering an investment you are selling is done in the same way as buying one except the total cost of the transaction is entered in the <emphasis>Sell</emphasis> column and the <emphasis>Shares</emphasis> column is entered as a negative amount. The net proceeds from the sale should be transferred from the stock account to your bank or brokerage account.</para>
- <para>The proper recording of the stock sale *must* be done using a split transaction. In the split transaction, you must account for the profit (or loss) as coming from an Income:Capital Gains account (or Expense:Capital Loss). To balance this income, you will need to enter the stock asset twice in the split. Once to record the actual sale (using the correct number of shares and correct price per share) and once to balance the income profit (setting the number of shares to 0 and price per share to 0).</para>
- <para>In the split transaction scheme presented below, the symbol NUM_SHARES is the number of shares you are selling, SELL_PRICE is the price for which you sold the shares, GROSS_SALE is the total price for which you sold shares, equal to NUM_SHARES*SELL_PRICE. PROFIT is the amount of money you made on the sale. COMMISSIONS are the brokerage commissions. NET_SALE is the net amount of money received from the sale, equal to GROSS_SALE - COMMISSIONS.</para>
- <table>
- <title>Selling Stock using Split Transaction Scheme</title>
- <tgroup cols="3">
- <tbody>
- <row>
- <entry><emphasis>Account</emphasis></entry>
- <entry><emphasis>Number of Shares</emphasis></entry>
- <entry><emphasis>Share Price</emphasis></entry>
- <entry><emphasis>Total Buy</emphasis></entry>
- <entry><emphasis>Total Sell</emphasis></entry>
- </row>
- <row>
- <entry>Asset:Bank</entry>
- <entry></entry>
- <entry></entry>
- <entry>NET_SALE</entry>
- <entry></entry>
- </row>
- <row>
- <entry>Asset:Stock:SYMBOL</entry>
- <entry>-NUM_SHARES</entry>
- <entry>SELL_PRICE</entry>
- <entry></entry>
- <entry>GROSS_SALE</entry>
- </row>
- <row>
- <entry>Asset:Stock:SYMBOL</entry>
- <entry>0</entry>
- <entry>0</entry>
- <entry>PROFIT</entry>
- <entry>(Loss)</entry>
- </row>
- <row>
- <entry>Income:Capital Gains</entry>
- <entry></entry>
- <entry></entry>
- <entry>(Loss)</entry>
- <entry>PROFIT</entry>
- </row>
- <row>
- <entry>Expenses:Commissions</entry>
- <entry></entry>
- <entry></entry>
- <entry>COMMISSION</entry>
- <entry></entry>
- </row>
- </tbody>
- </tgroup>
- </table>
+ <sect1 id="invest-sell1">
+ <title>Selling Shares</title>
- <para>If you will be recording the sale of the stock as a capital gain (or loss), please see the chapter "Depreciation and Capital Gains" for more information on this topic.</para>
+ <para>Entering an investment you are selling is done in the same way as
+ buying one except the total cost of the transaction is entered in the
+ <emphasis>Sell</emphasis> column and the <emphasis>Shares</emphasis>
+ column is entered as a negative amount. The net proceeds from the sale
+ should be transferred from the stock account to your bank or brokerage
+ account.</para>
- <sect2 id="invest_sellexample2">
- <title>Example - Sale of stock with profit </title>
+ <para>The proper recording of the stock sale *must* be done using a split
+ transaction. In the split transaction, you must account for the profit (or
+ loss) as coming from an Income:Capital Gains account (or Expense:Capital
+ Loss). To balance this income, you will need to enter the stock asset
+ twice in the split. Once to record the actual sale (using the correct
+ number of shares and correct price per share) and once to balance the
+ income profit (setting the number of shares to 0 and price per share to
+ 0).</para>
- <para>As an example, assume you bought 100 shares of a stock for $20 per share, then later sell them all for $36 per share. In the split transaction scheme above, PRICEBUY is $20 (the original buying price), NUM_SHARES is 100, TOTALBUY is $2000 (the original buying cost), GROSS_SALE is $3600, and finally PROFIT is $1525 (GROSS_SALE-TOTALBUY-COMMISSION).</para>
+ <para>In the split transaction scheme presented below, the symbol
+ NUM_SHARES is the number of shares you are selling, SELL_PRICE is the
+ price for which you sold the shares, GROSS_SALE is the total price for
+ which you sold shares, equal to NUM_SHARES*SELL_PRICE. PROFIT is the
+ amount of money you made on the sale. COMMISSIONS are the brokerage
+ commissions. NET_SALE is the net amount of money received from the sale,
+ equal to GROSS_SALE - COMMISSIONS.</para>
- <table>
- <title>Selling Stock Split Transaction Scheme</title>
- <?dbhtml table-width="50%" ?>
- <?dbfo table-width="50%" ?>
- <tgroup cols="3">
- <tbody>
- <row>
- <entry><emphasis>Account</emphasis></entry>
- <entry><emphasis>Shares</emphasis></entry>
- <entry><emphasis>Price</emphasis></entry>
- <entry><emphasis>Buy</emphasis></entry>
- <entry><emphasis>Sell</emphasis></entry>
- </row>
- <row>
- <entry>Asset:Bank</entry>
- <entry></entry>
- <entry></entry>
- <entry>3525.00</entry>
- <entry></entry>
- </row>
- <row>
- <entry>Asset:Stock:SYMBOL</entry>
- <entry>-100</entry>
- <entry>36.00</entry>
- <entry></entry>
- <entry>3600.00</entry>
- </row>
- <row>
- <entry>Asset:Stock:SYMBOL</entry>
- <entry>0</entry>
- <entry>0</entry>
- <entry>1600.00</entry>
- <entry></entry>
- </row>
- <row>
- <entry>Income:Capital Gains</entry>
- <entry></entry>
- <entry></entry>
- <entry></entry>
- <entry>1600.00</entry>
- </row>
- <row>
- <entry>Expenses:Commissions</entry>
- <entry></entry>
- <entry></entry>
- <entry>75.00</entry>
- <entry></entry>
- </row>
- </tbody>
- </tgroup>
- </table>
+ <table>
+ <title>Selling Stock using Split Transaction Scheme</title>
-<screenshot id="invest_sellstock">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_sellstock.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Selling Stock Example</phrase>
- </textobject>
- <caption>
- <para>An example of selling stock for gain. You bought 100 shares of AMZN for $20 per share, and sold for $36.</para>
- </caption>
- </mediaobject>
- </screenshot>
+ <tgroup cols="5">
+ <tbody>
+ <row>
+ <entry><emphasis>Account</emphasis></entry>
- <screenshot id="invest_sellstock2">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_sellstock2.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Selling Stock Example</phrase>
- </textobject>
- <caption>
- <para>An image of the account tree after the example of selling stock for gain.
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <entry><emphasis>Number of Shares</emphasis></entry>
+ <entry><emphasis>Share Price</emphasis></entry>
- </sect2>
+ <entry><emphasis>Total Buy</emphasis></entry>
- <sect2 id="invest_sellexampleloss">
- <title>Example - Sale of stock with loss </title>
+ <entry><emphasis>Total Sell</emphasis></entry>
+ </row>
- <para>As an example, assume you bought 100 shares of a stock for $100 per share, then later sell them all for $50 per share. In the split transaction scheme below, PRICEBUY is $100 (the original buying price), NUM_SHARES is 100, TOTAL_BUY is $10,000 (the original buying price), (Loss) is $5000, and finally GROSS_SALE is $5000. Assume the commission was $100.00.</para>
+ <row>
+ <entry>Assets:Bank</entry>
+ <entry></entry>
- <table>
- <title>Selling Shares at loss Split Transaction Scheme</title>
- <?dbhtml table-width="50%" ?>
- <?dbfo table-width="50%" ?>
- <tgroup cols="3">
- <tbody>
- <row>
- <entry><emphasis>Account</emphasis></entry>
- <entry><emphasis>Shares</emphasis></entry>
- <entry><emphasis>Price</emphasis></entry>
- <entry><emphasis>Buy</emphasis></entry>
- <entry><emphasis>Sell</emphasis></entry>
- </row>
- <row>
- <entry>Asset:Bank</entry>
- <entry></entry>
- <entry></entry>
- <entry>4900.00</entry>
- <entry></entry>
- </row>
- <row>
- <entry>Asset:Stock:SYMBOL</entry>
- <entry>-100</entry>
- <entry>50.00</entry>
- <entry></entry>
- <entry>5000.00</entry>
- </row>
- <row>
- <entry>Asset:Stock:SYMBOL</entry>
- <entry>0</entry>
- <entry>0</entry>
- <entry> </entry>
- <entry>5000.00</entry>
- </row>
- <row>
- <entry>Income:Capital Gains</entry>
- <entry></entry>
- <entry></entry>
- <entry>5000.</entry>
- <entry>0</entry>
- </row>
- <row>
- <entry>Expenses:Commissions</entry>
- <entry></entry>
- <entry></entry>
- <entry>100</entry>
- <entry></entry>
- </row>
- </tbody>
- </tgroup>
- </table>
- <para>Note: You may either enter the loss as a positive number in the "buy" column or as a negative number in the "sell" column, GnuCash will move the "negative profit" to the other column.
- </para>
+ <entry></entry>
- <screenshot id="invest_sellstockLoss">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_sellstockLoss.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Selling Stock at loss Example</phrase>
- </textobject>
- <caption>
- <para>Above is a screenshot of the example of selling stock. You bought 100 shares for $100.00 per share, and sold for $50.</para>
- </caption>
- </mediaobject>
- </screenshot>
+ <entry>NET_SALE</entry>
- <screenshot id="invest_sellstockLoss2">
- <mediaobject>
- <imageobject>
- <imagedata fileref="figures/invest_sellstockLoss2.png"
- srccredit="Dave Herman" format="PNG"/>
- </imageobject>
- <textobject>
- <phrase>Selling Stock at loss Example</phrase>
- </textobject>
- <caption>
- <para>An image of the account tree after the example of selling stock for loss.
- </para>
- </caption>
- </mediaobject>
- </screenshot>
+ <entry></entry>
+ </row>
- </sect2>
- </sect1>
+ <row>
+ <entry>Assets:Stock:SYMBOL</entry>
- <sect1 id="invest_dividends1">
- <title>Dividends</title>
- <para>Some companies or mutual funds pay periodic dividends to shareholders. Dividends are typically given in one of two ways, either they are automatically reinvested into the commodity or they are given as cash. Mutual funds are often setup to automatically reinvest the dividend, while common stock dividends usually pay cash.</para>
- <para>If you receive the dividend in the form of an automatic reinvestment, the transaction to account for this should be handled within the stock or mutual fund account as income from "Income:Dividend" for the appropriate number of reinvested shares.</para>
- <para>If the dividend is presented as cash, you should record the transaction directly in the bank account that received the money, as income from "Income::Dividends" with a note mentioning from which commodity it was derived. There is no simple way to show this transaction from within the stock or mutual fund account itself.</para>
- <note>
- <para>If you want to track dividends on a per-stock basis, you would need to create an Income:Dividends:STOCKSYMBOL account for each stock you own that pays dividends.</para>
- </note>
- </sect1>
+ <entry>-NUM_SHARES</entry>
- <sect1 id="invest_todo1">
- <title>To-do</title>
- <para>
-These are the remaining documentation sections that originally appeared in the 1.8.4 documentation which require being written up.
- </para>
+ <entry>SELL_PRICE</entry>
- <itemizedlist>
- <listitem>
- <para>Recording Stock Splits and Mergers (How-To)</para>
- </listitem>
- <listitem>
- <para>Recording Employee Stock Plans (Discussion)</para>
- </listitem>
- <listitem>
- <para>Stock Options (How-To)</para>
- </listitem>
- <listitem>
- <para>Reconciling with the Brokerage Statement (How-To)</para>
- </listitem>
- </itemizedlist>
+ <entry></entry>
- </sect1>
+ <entry>GROSS_SALE</entry>
+ </row>
- </chapter>
+ <row>
+ <entry>Assets:Stock:SYMBOL</entry>
+
+ <entry>0</entry>
+
+ <entry>0</entry>
+
+ <entry>PROFIT</entry>
+
+ <entry>(Loss)</entry>
+ </row>
+
+ <row>
+ <entry>Income:Capital Gains</entry>
+
+ <entry></entry>
+
+ <entry></entry>
+
+ <entry>(Loss)</entry>
+
+ <entry>PROFIT</entry>
+ </row>
+
+ <row>
+ <entry>Expenses:Commissions</entry>
+
+ <entry></entry>
+
+ <entry></entry>
+
+ <entry>COMMISSION</entry>
+
+ <entry></entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table>
+
+ <para>If you will be recording the sale of the stock as a capital gain (or
+ loss), please see the chapter <quote>Depreciation and Capital Gains</quote> for more
+ information on this topic.</para>
+
+ <sect2 id="invest-sellexample2">
+ <title>Example - Sale of stock with profit</title>
+
+ <para>As an example, assume you bought 100 shares of a stock for $20 per
+ share, then later sell them all for $36 per share. In the split
+ transaction scheme above, PRICEBUY is $20 (the original buying price),
+ NUM_SHARES is 100, TOTALBUY is $2000 (the original buying cost),
+ GROSS_SALE is $3600, and finally PROFIT is $1525
+ (GROSS_SALE-TOTALBUY-COMMISSION).</para>
+
+ <table>
+ <title>Selling Stock Split Transaction Scheme</title>
+
+ <?dbhtml table-width="50%" ?>
+
+ <?dbfo table-width="50%" ?>
+
+ <tgroup cols="5">
+ <tbody>
+ <row>
+ <entry><emphasis>Account</emphasis></entry>
+
+ <entry><emphasis>Shares</emphasis></entry>
+
+ <entry><emphasis>Price</emphasis></entry>
+
+ <entry><emphasis>Buy</emphasis></entry>
+
+ <entry><emphasis>Sell</emphasis></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Bank</entry>
+
+ <entry></entry>
+
+ <entry></entry>
+
+ <entry>3525.00</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Stock:SYMBOL</entry>
+
+ <entry>-100</entry>
+
+ <entry>36.00</entry>
+
+ <entry></entry>
+
+ <entry>3600.00</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Stock:SYMBOL</entry>
+
+ <entry>0</entry>
+
+ <entry>0</entry>
+
+ <entry>1600.00</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Income:Capital Gains</entry>
+
+ <entry></entry>
+
+ <entry></entry>
+
+ <entry></entry>
+
+ <entry>1600.00</entry>
+ </row>
+
+ <row>
+ <entry>Expenses:Commissions</entry>
+
+ <entry></entry>
+
+ <entry></entry>
+
+ <entry>75.00</entry>
+
+ <entry></entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table>
+
+ <screenshot id="invest-sellstock">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_sellstock.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Selling Stock Example</phrase>
+ </textobject>
+
+ <caption><para>An example of selling stock for gain. You bought 100
+ shares of AMZN for $20 per share, and sold for $36.</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <screenshot id="invest-sellstock2">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_sellstock2.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Selling Stock Example</phrase>
+ </textobject>
+
+ <caption><para>An image of the account tree after the example of
+ selling stock for gain. </para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect2>
+
+ <sect2 id="invest-sellexampleloss">
+ <title>Example - Sale of stock with loss</title>
+
+ <para>As an example, assume you bought 100 shares of a stock for $100
+ per share, then later sell them all for $50 per share. In the split
+ transaction scheme below, PRICEBUY is $100 (the original buying price),
+ NUM_SHARES is 100, TOTAL_BUY is $10,000 (the original buying price),
+ (Loss) is $5000, and finally GROSS_SALE is $5000. Assume the commission
+ was $100.00.</para>
+
+ <table>
+ <title>Selling Shares at loss Split Transaction Scheme</title>
+
+ <?dbhtml table-width="50%" ?>
+
+ <?dbfo table-width="50%" ?>
+
+ <tgroup cols="5">
+ <tbody>
+ <row>
+ <entry><emphasis>Account</emphasis></entry>
+
+ <entry><emphasis>Shares</emphasis></entry>
+
+ <entry><emphasis>Price</emphasis></entry>
+
+ <entry><emphasis>Buy</emphasis></entry>
+
+ <entry><emphasis>Sell</emphasis></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Bank</entry>
+
+ <entry></entry>
+
+ <entry></entry>
+
+ <entry>4900.00</entry>
+
+ <entry></entry>
+ </row>
+
+ <row>
+ <entry>Assets:Stock:SYMBOL</entry>
+
+ <entry>-100</entry>
+
+ <entry>50.00</entry>
+
+ <entry></entry>
+
+ <entry>5000.00</entry>
+ </row>
+
+ <row>
+ <entry>Assets:Stock:SYMBOL</entry>
+
+ <entry>0</entry>
+
+ <entry>0</entry>
+
+ <entry></entry>
+
+ <entry>5000.00</entry>
+ </row>
+
+ <row>
+ <entry>Income:Capital Gains</entry>
+
+ <entry></entry>
+
+ <entry></entry>
+
+ <entry>5000.</entry>
+
+ <entry>0</entry>
+ </row>
+
+ <row>
+ <entry>Expenses:Commissions</entry>
+
+ <entry></entry>
+
+ <entry></entry>
+
+ <entry>100</entry>
+
+ <entry></entry>
+ </row>
+ </tbody>
+ </tgroup>
+ </table>
+
+ <para>Note: You may either enter the loss as a positive number in the
+ <quote>buy</quote> column or as a negative number in the <quote>sell</quote>
+ column, GnuCash will move the <quote>negative profit</quote> to the other column.</para>
+
+ <screenshot id="invest-sellstockLoss">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_sellstockLoss.png" format="PNG"
+ srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Selling Stock at loss Example</phrase>
+ </textobject>
+
+ <caption><para>Above is a screenshot of the example of selling
+ stock. You bought 100 shares for $100.00 per share, and sold for
+ $50.</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <screenshot id="invest-sellstockLoss2">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_sellstockLoss2.png"
+ format="PNG" srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Selling Stock at loss Example</phrase>
+ </textobject>
+
+ <caption><para>An image of the account tree after the example of
+ selling stock for loss. </para></caption>
+ </mediaobject>
+ </screenshot>
+ </sect2>
+ </sect1>
+
+ <sect1 id="invest-dividends1">
+ <title>Dividends</title>
+
+ <para>Some companies or mutual funds pay periodic dividends to
+ shareholders. Dividends are typically given in one of two ways, either
+ they are automatically reinvested into the commodity or they are given as
+ cash. Mutual funds are often setup to automatically reinvest the dividend,
+ while common stock dividends usually pay cash.</para>
+
+ <sect2 id="invest-dividendcash">
+ <title>Dividends in Cash</title>
+
+ <para>If the dividend is presented as cash, you should record the
+ transaction directly in the asset account that received the money, as
+ income from <quote>Income::Dividends</quote> with a note mentioning from which
+ commodity it was derived. There is no simple way to show this transaction
+ from within the stock or mutual fund account itself.</para>
+
+ <para>As an example consider the following; a purchase of IBM stock with the dividends
+ deposited as cash into the Broker Account.</para>
+
+ <screenshot id="invest-dividendcash1">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_dividendcash.png"
+ format="PNG" srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Example of cash dividend transactions</phrase>
+ </textobject>
+
+ <caption><para>An image of the Brokerage Account register after a series of cash
+ dividends. </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <note>
+ <para>If you want to track dividends on a per-stock basis, you would
+ need to create an Income:Dividends:STOCKSYMBOL account for each stock
+ you own that pays dividends.</para>
+ </note>
+
+ </sect2>
+
+ <sect2 id="invest-dividendreinvest">
+ <title>Dividends Re-Invested</title>
+
+ <para>If you receive the dividend in the form of an automatic
+ reinvestment, the transaction for this should be handled within
+ the stock or mutual fund account as income from <quote>Income:Dividend</quote> for the
+ appropriate number of reinvested shares. This type of reinvest account is often referred
+ to as a DRIP (Dividend Re-Investment Program).</para>
+
+ <para>As an example consider the following; purchase of NSTAR (NST) stock with the
+ dividends reinvested into a DRIP Account. Mutual fund re-investments would be the same.
+ </para>
+
+ <para>Starting with the purchase of 100 shares on Jan. 3, 2005, all dividends will be
+ reinvested and an account is created to track the dividend to the specific stock. GnuCash
+ simplifies the entry by allowing calculations within the cells of the transaction. If the
+ first dividend is $.29/share, enter $53.38 in the share price and 100*.29 in the Buy cell.
+ </para>
+
+ <screenshot id="invest-dividendreinvest1">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_dividendreinvest1.png"
+ format="PNG" srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Example of dividend reinvestment transactions</phrase>
+ </textobject>
+
+ <caption><para>An image of the Stock Account register after a series of
+ dividends reinvestment. </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <screenshot id="invest-dividendreinvest2">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/invest_dividendreinvest2.png"
+ format="PNG" srccredit="Dave Herman" ></imagedata>
+ </imageobject>
+
+ <textobject>
+ <phrase>Example of dividend reinvestment transactions</phrase>
+ </textobject>
+
+ <caption><para>An image of the Accounts tree after a series of
+ dividends reinvestment. </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ </sect2>
+
+ </sect1>
+
+ <sect1 id="invest-todo1">
+ <title>To-do</title>
+
+ <para>These are the remaining documentation sections that originally
+ appeared in the 1.8.4 documentation which require being written up.</para>
+
+ <itemizedlist>
+ <listitem>
+ <para>Recording Stock Splits and Mergers (How-To)</para>
+ </listitem>
+
+ <listitem>
+ <para>Recording Employee Stock Plans (Discussion)</para>
+ </listitem>
+
+ <listitem>
+ <para>Stock Options (How-To)</para>
+ </listitem>
+
+ <listitem>
+ <para>Reconciling with the Brokerage Statement (How-To)</para>
+ </listitem>
+ </itemizedlist>
+ </sect1>
+</chapter>
Modified: gnucash-docs/trunk/guide/C/ch_loans.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_loans.xml 2006-05-07 00:38:45 UTC (rev 13937)
+++ gnucash-docs/trunk/guide/C/ch_loans.xml 2006-05-07 05:36:07 UTC (rev 13938)
@@ -242,9 +242,9 @@
loan). Compounding is Monthly, Payments are Monthly, assume End of
Period Payments, and Discrete Compounding. Now, click on the
<guibutton>Calculate</guibutton> button next to the Periodic Payment
- area. You should see -473.30.</para>
+ area. You should see $-477.42.</para>
- <para>Answer: You must make monthly payments of 473.30.</para>
+ <para>Answer: You must make monthly payments of 477.42.</para>
</sect2>
<sect2 id="loans_calcsexample2_2">
@@ -367,7 +367,8 @@
<sect3 id="loans_calcsdetails_ex2">
<title>Example: Monthly Payments</title>
- <para>Let's recalculate the examples shown above, this time using the
+ <para>Let's recalculate <xref linkend="loans_calcsexample1_2"/>,
+ this time using the
mathematical formulas rather than the Financial Calculator. What is
your monthly payment on a $100000 30 year loan at a fixed rate of 4%
compounded monthly?</para>
@@ -390,41 +391,8 @@
1)]/[A*B] = -[0 + 100000*(2.313498 + 1)] / [2.313498 * 300] =
-331349.8 / 694.0494 = -477.415296 = -477.42.</para>
- <para>If you would like to do the same calculation by using GnuCashs
- finacial calculator, then start it using <menuchoice>
- <guimenu>Tools</guimenu>
+ <para>Answer: You must make monthly payments of 477.42.</para>
- <guimenuitem>Financial Calculator</guimenuitem>
- </menuchoice> and enter</para>
-
- <itemizedlist>
- <listitem>
- <para><userinput>30 * 12</userinput> as Payment periods</para>
- </listitem>
-
- <listitem>
- <para><userinput>4</userinput> as Interest Rate</para>
- </listitem>
-
- <listitem>
- <para><userinput>100000</userinput> as Present Value</para>
- </listitem>
-
- <listitem>
- <para>Press <guibutton>Clear</guibutton> as Periodic
- payment</para>
- </listitem>
-
- <listitem>
- <para><userinput>0</userinput> as Payment periods</para>
- </listitem>
- </itemizedlist>
-
- <para>Press <guibutton>Calculate</guibutton> and you will see that you
- need to pay <emphasis>$477.42</emphasis> per month for the next 360
- months, as well as you will have payed a total of
- <emphasis>$171,871.20</emphasis> during this period. See screenshot at
- <xref linkend="loans_calcs1" />.</para>
</sect3>
</sect2>
</sect1>
@@ -599,15 +567,15 @@
</listitem>
</itemizedlist></para>
- <para>So how do we caculate the Montly Payment?</para>
+ <para>So how do you caculate the Montly Payment?</para>
- <para>We have a number of different options, like paper and pen, Linux Calculator,
- Open Office's Calc module, but the easiest is to use
- GnuCash Financial Calculater. This gives us that the Monthly Payment
+ <para>You have a number of different options, like paper and pen,
+ Linux Calculator, Open Office's Calc module, but the easiest is to use
+ GnuCash Financial Calculater. This gives you that the Monthly Payment
should be 115.56$.</para>
- <para>But we need to know how much of this is Interest and how much is
- Principal to be able to do a proper bookkeeping. For this we need a bit
+ <para>But you need to know how much of this is Interest and how much is
+ Principal to be able to do a proper bookkeeping. For this you need a
more powerful tool, something like the Calc module in Open Office, and
in particular the PMT function.</para>
@@ -886,8 +854,8 @@
<para>When you will record the selling of your house in GnuCash you have
some different options. Here we will go through two of them, one in which
- we only recorded the purchase amount, and now the selling amount. The other
- where we have followed the ups and downs on the property market and registered
+ you only recorded the purchase amount, and now the selling amount. The other
+ where you have followed the ups and downs on the property market and registered
various Unrealized gains over the time.</para>
<para></para>
@@ -895,7 +863,7 @@
<sect2>
<title>Simple Transaction</title>
- <para>In this way we only record the proper sale amount.</para>
+ <para>In this way you only record the proper sale amount.</para>
<para>Lets work through two samples of selling a house, one with a
profit, and one with a loss. If you want to sell a car instead, just
@@ -914,14 +882,14 @@
<itemizedlist>
<listitem>
- <para>We bought a house for $300,000 once upon a time, and managed
- to sell it for $600,000. How do we record this?</para>
+ <para>You bought a house for $300,000 once upon a time, and now managed
+ to sell it for $600,000. How do you record this?</para>
- <para>To record this we need to increase our bank account with the
+ <para>To record this you need to increase our bank account with the
$600k, and decrease some other accounts with $600k. The house
- account only contains $300k which is what we bought it for, so we
- move this amount to our bank account. That means we are lacking
- #300k. This amount we fetch from the Income:Captial Gains Long:House
+ account only contains $300k which is what you bought it for, so you
+ move this amount to your bank account. That means you are lacking
+ #300k. This amount you fetch from the Income:Captial Gains Long:House
account. The split transaction you enter into your
<emphasis>bank</emphasis> account (<guilabel>Assets:Fixed
Assets:Saving</guilabel>) should look like this.</para>
@@ -968,15 +936,15 @@
</listitem>
<listitem>
- <para>We bought a house for $300,000 once upon a time, but due to a
- newly created airport, we could only sell it for $230,000. How do we
+ <para>You bought a house for $300,000 once upon a time, but due to a
+ newly created airport, could only sell it for $230,000. How do you
record this?</para>
- <para>To record this we need to increase our bank account with the
+ <para>To record this you need to increase your bank account with the
$230k, and decrease some other accounts with $230k. The house
- account contains $300k which is more than what we sold it for. So
- lets move $230k of it to our bank account. After this we have $70k
- remaining in our house account which needs to be removed. We move it
+ account contains $300k which is more than what you sold it for. So
+ lets move $230k of it to your bank account. After this you have $70k
+ remaining in your house account which needs to be removed. You move it
to our Income:Capital Gains Long:House account, which will indicate
a loss. The split transaction you enter into your
<emphasis>house</emphasis> account (<guilabel>Assets:Fixed
@@ -1033,8 +1001,8 @@
accounting principles. For more details on this subject please check
<xref linkend="chapter_capgain"></xref></para>
- <para>Here we will only touch on the case when we have accurately estimated
- the current value of our house. For the other cases (over-, and
+ <para>Here we will only touch on the case when you have accurately estimated
+ the current value of your house. For the other cases (over-, and
under-estimated), please check <xref linkend="chapter_capgain"></xref>.</para>
<para><literallayout>
@@ -1052,24 +1020,24 @@
-House
</literallayout></para>
- <para>We bought a house for $300,000 once upon a time, and over
- the years we have keept a close look on the market and updated our
- records with the estimated current value of our house. At the time
- we want to sell our house, we have determined that it is valued at
- $600,000. </para>
+ <para>You bought a house for $300,000 once upon a time, and over
+ the years keept a close look on the market and updated your
+ records with the estimated current value of your house. At the time
+ you want to sell it, you have determined that the current market
+ value is $600,000. </para>
<para>The difference between $600,000 (estimated market value), and
$300,000 (purchase value) is the current Unrealized Gain value. Therefore
- we have a total of $300,000 in our
+ you have a total of $300,000 in your
<guilabel>Assets:Fixed Assets:House:Unrealized Gain</guilabel> account</para>
- <para>How do we record this sell transaction?</para>
+ <para>How do you record this sell transaction?</para>
- <para>To record this we need to increase our bank account with the
+ <para>To record this you need to increase your bank account with the
$600k, and decrease some other accounts with $600k.
- We must first change from unrealized gain to realized gain
- for our Income accounts.
- Lastly we transfer the full amounts from the "Assets:Fixed Assets:House"
+ You must first change from unrealized gain to realized gain
+ for your Income accounts.
+ Lastly you need to transfer the full amounts from the "Assets:Fixed Assets:House"
sub-accounts.</para>
<para>The transaction you enter into your
@@ -1153,8 +1121,8 @@
</tbody>
</tgroup>
</table></para>
- <para>After having recorded these transactions we see that our House
- Asset have a value of 0, our Savings account have increased with $600,000,
+ <para>After having recorded these transactions you see that your House
+ Asset have a value of 0, your Savings account have increased with $600,000,
and lastly, the Income:Realized Gain have increased to $300,000.</para>
</sect2>
Modified: gnucash-docs/trunk/guide/C/ch_oview.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_oview.xml 2006-05-07 00:38:45 UTC (rev 13937)
+++ gnucash-docs/trunk/guide/C/ch_oview.xml 2006-05-07 05:36:07 UTC (rev 13938)
@@ -409,11 +409,10 @@
<listitem>
<para><xref linkend="chapter_cc"></xref></para>
-
</listitem>
<listitem>
- <para>Chapter 7: Loans</para>
+ <para><xref linkend="chapter_loans"></xref></para>
</listitem>
<listitem>
@@ -421,7 +420,7 @@
</listitem>
<listitem>
- <para>Chapter 9: Capital Gains</para>
+ <para><xref linkend="chapter_capgain"></xref></para>
</listitem>
<listitem>
Modified: gnucash-docs/trunk/guide/C/ch_txns.xml
===================================================================
--- gnucash-docs/trunk/guide/C/ch_txns.xml 2006-05-07 00:38:45 UTC (rev 13937)
+++ gnucash-docs/trunk/guide/C/ch_txns.xml 2006-05-07 05:36:07 UTC (rev 13938)
@@ -259,7 +259,7 @@
</textobject>
<caption><para>This image shows a jump to the
- <guilabel>Income:Salary </guilabel> account.</para></caption>
+ <guilabel>Income:Salary</guilabel> account.</para></caption>
</mediaobject>
</screenshot>
@@ -274,6 +274,7 @@
helpful messages as you move about the register. To the right, you can
see the current account balance and the total of cleared splits.</para>
</sect2>
+
</sect1>
<sect1 id="txns-regstyle1">
@@ -297,6 +298,77 @@
double-line format. Select <guimenu>View</guimenu> ->
<guimenuitem>Double Line</guimenuitem>, and you will see your transaction
line expand to two register lines.</para>
+
+ <para>Lets have a closer look at how the Basic Ledger and Transaction Journal view differs.
+ </para>
+ <para>For this example, lets assume that you have a checking account with $10,000,
+ and have decided to really splurge by purchasing 3 pair of Jeans for $1,000.
+ Now, you can either record this as one simple transaction and move $1,000 to Expenses:Clothes.
+ Or, you can record a split transaction, and record each Jeans individually.</para>
+ <para>Technically they are the same, but from an accounting point of view, when you
+ record each Jeans purchase separately, the Expenses:Clothes account will record three
+ different transactions.</para>
+ <para>The below screenshots will illustrate this a bit better</para>
+
+ <para>First lets purchase the Jeans from your checking account</para>
+
+ <screenshot id="txns-registersplit4">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_registersplit4.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>3 Jeans purchases</phrase>
+ </textobject>
+
+ <caption><para>
+ This image shows one split transaction with 3 Jeans purchases
+ </para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>The we open the Expenses:Clothes account, and look at it from the default Basic Ledger view.
+ As you can see, we have three entries here, but there were only one entry in the checking account.
+ If you look carefully, you will see that each row have a different amount, $200, $300, and $500.
+ Each row's transaction line reflects a one split row</para>
+ <screenshot id="txns-registersplit5">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_registersplit5.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>A jump to the Expenses:Clothes account</phrase>
+ </textobject>
+
+ <caption><para>This image shows <guilabel>Expenses:Clothes</guilabel> account
+ in Basic Ledger mode.</para></caption>
+ </mediaobject>
+ </screenshot>
+
+ <para>If we view the Expenses:Clothes account in Transaction Journal mode, you will again, only see
+ the original split transaction.</para>
+
+ <screenshot id="txns-registersplit6">
+ <mediaobject>
+ <imageobject>
+ <imagedata fileref="figures/txns_registersplit6.png" format="PNG"
+ srccredit="Bengt Thuree" />
+ </imageobject>
+
+ <textobject>
+ <phrase>A jump to the Expenses:Clothes account</phrase>
+ </textobject>
+
+ <caption><para>This image shows <guilabel>Expenses:Clothes</guilabel> account in
+ Transaction Journal mode.</para></caption>
+ </mediaobject>
+ </screenshot>
+
+
</sect1>
<sect1 id="txns-shortcuts1">
@@ -900,7 +972,8 @@
<para>If you click in the calendar part on the first day of one month, a
small window, following your mouse, will show you what is planned for
- this day.</para>
+ this day. To make the small window dissapear again, just click in it
+ one more time.</para>
<para>You can now close the Scheduled Transaction Editor window, and
<guilabel>save</guilabel> your work.</para>
@@ -1004,7 +1077,7 @@
<title>Open GnuCash file</title>
<para>Start with opening the previous datafile we stored,
- <filename>gcashdata_3</filename>, and store it as
+ <filename>gcashdata_3emptyAccts</filename>, and store it as
<filename>gcashdata_4</filename> directly. The main window should look
something like this:</para>
@@ -1159,7 +1232,7 @@
</listitem>
<listitem>
- <para>To transfer money from you savings account to your checking
+ <para>To transfer money from your savings account to your checking
account, open the <guilabel>Assets:Savings</guilabel> account
regischildsplay-alphabet-sounds-svter, add a new transaction setting
the Transfer to <guilabel>Assets:Checking</guilabel> in the amount
@@ -1194,7 +1267,7 @@
</listitem>
<listitem>
- <para>We also need to pay for our Internet subscription of 20 USD on
+ <para>You also need to pay for your Internet subscription of 20 USD on
the 28th.</para>
</listitem>
</orderedlist>
@@ -1317,4 +1390,4 @@
</orderedlist>
</sect2>
</sect1>
-</chapter>
\ No newline at end of file
+</chapter>
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