Index: guide/C/ch_currency.xml =================================================================== --- guide/C/ch_currency.xml (revision 17480) +++ guide/C/ch_currency.xml (working copy) @@ -521,26 +521,21 @@ Purchasing foreign stocks - A more complicated example - - This example will show how to deal with having stocks in a + This example will show how to purchase stocks that are priced in a different currency than your normal currency. - 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. - + Assume that you live in New York and therefore you have set the + default currency to USD. You decide to purchase a stock traded in Hong + Kong that is priced in HKD. You would also like to be able to track the + various income and expenses per stock and broker. - You would also like to be able to track the various income and - expenses per stock and broker. + You decide to purchase stock in the Beijing Airport (Hong Kong). + (After all, the 2008 Olympics in Beijing have finished and the price has + returned to Earth.) - 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) - - The above stock (Beijing Airport) are just choosen - for this particular example, and should not be taken as any kind of - stock purchase advice + The above stock (Beijing Airport) has been chosen only as an example, + and should not be taken as any kind of stock purchase advice. You need to find out what the stock ticker is for this @@ -558,7 +553,7 @@ Since we wanted to be able to track all various incomes and expenses, - we come up with the following Account structure + we come up with the following Account structure: Assets:Investments:Brokerage Accounts:Boom:0694.HK (Beijing Airport) @@ -569,7 +564,7 @@ The Chart of Accounts looks like this after creating all the - needed accounts + needed accounts: @@ -587,8 +582,9 @@ - The various commodities (Tools -> - Security Editor) looks like this + The stock definition can be seen in the Security Editor. + (Tools -> Security Editor) + @@ -598,41 +594,33 @@ - International commodities + International securities - International commodities + International securities - - There is currently a small bug ( + If you have not moved some money (HKD 50,000) into the brokerage's + cash account (Assets:Investments:Brokerage Account:Boom:Bank), do so + now, either using the Equity (HKD) account, or an existing bank account + (Currency Transfer). - 335101 - - - ) 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. - - - 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). - - 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 + Let's assume that stock price is HKD 3 per share. To record the + purchase, open the brokerage's HKD cash account + (Assets:Investments:Brokerage Account:Boom:Bank), and enter + the following: -Buy Stocks +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) - + - If the "Exchange Data" dialog popup do not appear, open it - manually by right click on the last row, and select Edit - Exchange Rate In the following pop up window, enter the - actual number of stocks (16,500) as the To Amount: + If the exchange rate dialog box does not appear automatically, + right-click on the stock row, and select Edit + Exchange Rate. Enter the number of shares (16,500) as the + To Amount. @@ -646,15 +634,12 @@ Transfer Funds - Setting To Amount in the Transfer Funds dialog + Setting the number of shares in the Transfer Funds dialog - When you exit the exchange dialog, and Enter this transaction GnuCash will - update the stock purchase transaction with all relevant data. - - If you now go back to the main Chart of Accounts, you will see something like - this + If you return to the Chart of Accounts, you will see the + purchased shares reflected in the stock account's total. @@ -672,12 +657,26 @@ - 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 + However, as you can see, the USD totals may be zero if + GnuCash doesn't have an exchange rate between USD and HKD. + To fix this, go to Tools -> Price Editor - and click on the Get Quotes button to - automatically load the various exchange rates you need. + and click the Get Quotes button to + automatically retrieve the exchange rates you need. + + This example shows how stock can be purchased in any currency + by entering the transaction in the register of the cash account used + to make payment. It is also possible to enter the purchase + in the stock account's register, but proceed with caution! + When doing it that way, the stock is assumed to be priced + in the currency of the stock account's parent. + In this example, the stock account's parent + (Assets:Investments:Brokerage Account:Boom) is denominated in HKD. + Since this is same currency as the stock price, the purchase + can be safely entered in the stock account's register. + +