how are multiple currency transactions supposed to work?

[greg]

On Thu, 2003-10-23 at 18:57, Derek Atkins wrote:
> greg <gmott at ntlworld.com> writes:
> > hello gnucasheteers,
> > 
> > i'm from the USA living in the UK, trying to use gnucash(1.8.7), hoping
> > it will work, but i must be missing something, hopefully somebody can
> > toss me a clue.
> > 
> > i gather gnucash is supposed to be able to do a transaction between two
> > currencies.  when i try it tho, even when i enter an exchange rate, i
> > end up with an unbalanced transaction.  the only way to balance the
> > transaction is when the exchange rate is 1:1?  otherwise, gnucash wants
> > to add an adjusting split.  is that the way it is supposed to work?
> > 
> > the way i was hoping to use this is to enter transactions when i make
> > them, eg a purchase on a credit card, then when i get the statement,
> > correct the amount on the bank's side of the transaction, and hopefully
> > gnucash would then adjust the exchange rate accordingly without too much
> > fuss.
> > 
> > is gnucash up to this?  anyone recommend alternatives?
> 
> Sort of, but not automatically.  In order to get gnucash to update the
> exchange rate you need to right-click on the transaction and select
> "Edit Exchange Rate".  And you'll need to do this AFTER you change the
> bank's side.
> 
> Once an exchange rate is set, it ALWAYS wants to keep that exchange
> rate.  So, when you change one value it will attempt to keep that same
> exchange rate and change the other value accordingly.  For example,
> assume an exchange rate of 1:2, and values of #10 and $20.  If you
> then change the value to #15, it will automatically adjust the
> transaction to $30.

hmm, perhaps i'm doing something wrong?  is it intentional that it wants
to add an adjusting split even after i have adjusted the exchange rate? 
the adjusting split that it wants to add seems to ignore the exchange
rate altogether, as if it were always 1:1 even though it isn't?

-greg