tutorial on multi-currency accounting
mta at umich.edu
Wed Mar 7 16:07:06 EST 2007
--On March 7, 2007 9:48:56 AM -0500 Derek Atkins <warlord at MIT.EDU>
> Mike Alexander <mta at umich.edu> writes:
>>>> - xaccTransScrubImbalance now scrubs the transaction two ways. It
>>>> makes sure the value is balanced, and it makes sure that the
>>>> amounts balance separately for each commodity in the transaction.
>>>> This makes capital gain splits as created by scrubbing lots
>>>> unnecessary, although existing capital gains splits won't hurt
> I'm trying to understand how do you this. Let's say you have a simple
> TXN(USD) Debits Credits
> Cash(USD) $100
> Cash(EUR) EUR65
> What would your scrubber do? Note that there is no gain or loss in
> this transaction by itself. The gain/loss only occurs when I move
> back to USD with a second transaction in the opposite direction.
It would add splits similar to those suggested in Peter's documents:
After this the transaction is still balanced for value (assuming all
values are $100 as they should be).
You're right that you don't have any realized gain/loss until you
convert it back, but at any time after this transaction is entered you
may have an unrealized gain/loss. The value of the Currency parent
account will be this unrealized gain/loss assuming you've entered the
appropriate exchange rates in the price editor. This is explained
fairly well in Peter's documents and seems to work right in GnuCash.
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