Foreign currency accounts and transactions.

[Derek Atkins]

Adam Funk <a24061 at yahoo.com> writes:

> If you have to remember to "Edit Exchange Rate" for every transaction
> that affects an account denominated in another currency, what is the
> function of the "Price Editor"?

The Price Editor is used for present value..  Think about a foreign
currency in the same way as you would think about a stock.  If you're
holding onto a foreign currency you probably want to know how much
that holding is worth in your home currency.  The Price Editor tells
you that, then current value of the holding.

The EER, however, is used to compute the actual basis (purchase
price) and gain/loss (sale price) of that foreign currency.
The one place where the EER and Price Editor is tied together
is that the EER will save the current price into the PriceDB,
and it will use the most recent price from the PriceDB as the
"default" entry.  But it's still the actual EER price that matters
for your basis/gain.

I hope this clears up your confusion.

-derek
-- 
       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
       warlord at MIT.EDU                        PGP key available