Working with multiple currencies

Derek Atkins warlord at MIT.EDU
Thu Oct 5 10:00:23 EDT 2006

This sounds like a bug.  Can you file it in Bugzilla?


Manousaridis Angelos <amanous at> writes:

> I am using gnucash to track my personal expenses, nothing extremely
> fancy. All of my accounts are in Euro, but recently I started using some
> accounts in other currencies for money I spend abroad.
> I use a "cash" account on a different currency, do a "transfer" to that
> account when I change money to other currencies and then record my
> travel expenses in eccount on that currency. I checked the balance in
> the "expenses" in euros and it is exactly as planed.
> My problem is that gnucash calculates everything according to the
> last exchange rate in the Price Editor. This makes sense in the Assets,
> but I don't understand how it makes sense in the expenses.
> I will elaborate what I mean with an example.
> Lets say that I exchange 100 euros to N dollars and spend them all. I do
> this transaction and enter the rate (N/100). Everythins works fine. My
> assets (cash) are reduced by 100 euros and using USD "accounts" in
> "expenses", gnucash increases my expenses for 100 euros. Now, lets say
> that 5 months later I exchange 100 euros to M dollars. If I make the
> same thing again, ALL my expenses will be calculated using this rate,
> including my old expenses! How is this correct? The old expenses were N
> USD which were translated to 100 euros, now their value will change
> according to the new rate!
> Wouldn't it make much more sense if the old expenses were calculated
> with the old rate and the new expenses with the new rate? I can
> understand that assets are always calculated with the latest rate. Any
> leftover dollars would be worth as much as the latest rate suggests. But
> is it the same with expenses?
> Am I missing something?
> -- 
> Manousaridis Angelos
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       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL:    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available

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