Multiple currencies for Credit cards

[Derek Atkins]

I'd suggest the multiple account approach.  The fee you're charged is
being charged in the currency of the credit card, so you should
account for it that way.  The exchange rate (if any) would occur when
you actually pay the bill, or maybe even when you buy the currency
with which you pay the bill.

-derek

Tom Haskins-Vaughan <tom at meandmini.com> writes:

> I have credit cards in GBP and USD. Do I need two separate expense 
> accounts as follows:
>
> Expenses:Banking charges:Credit Card Interest USD
> Expenses:Banking charges:Credit Card Interest GBP
>
> Or would one do?
>
> I'm thinking that if I only had one, then the exchange rate would come 
> into play for each monthly fee.
>
> Liabilites:US Credit Card -> Expenses:Banking charges:Credit Card Interest
>
> Whereas if I had two separate expense accounts then the exchange rate 
> would only be important when I was compiling reports, e.g. a balance sheet.
>
> What are people's thoughts?
>
> Tom

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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