Multiple currency issues

[Charles Day]

On Tue, Jul 8, 2008 at 6:00 AM, Jannick Asmus <jannick.news at gmail.com>
wrote:

> The issues listed below appear with multiple currency transactions. A
> sample file is attached with the following example:
>
> Cash (USD): 78 USD
> Other Income: 49,62 EUR (w.r.t. some FXR)
> EUR is the main currency.
>
>
> 1. The transaction is shown in the currency of the opened account, i.e.
> when "Cash (USD)" is opened, then the transaction is shown completely in USD
> (here: 78 units). When, in contrast, the transaction is shown in the general
> ledger, the transaction is not shown in the main currency (here: EUR).
>
> Q1: Is is possible to let GnuCash show the currency of the opened account
> (e.g. by choosing an option)?
>

I don't know the answer for sure, but I think it is "No".


>
> Q2: Is there a special the reason why the currency in the general ledger
> view is not the main currency?
>

I think by default the G/L shows each debit and credit in the currency of
the affected account. But in the report options you can select
General->Common Currency and pick EUR.


>
> 2. Income statement
>
> The income statement in USD shows a total revenue of 0, expected is 78,
> whereas the P&L in EUR is ok.
>
> Q3: Is this because GnuCash expects a foreign exchange rate in the database
> to convert USD into EUR?
>

I couldn't reproduce this in trunk. My income statement shows total revenue
of 78 if you run with USD, or total revenue of 49.62 if you run with EUR.
This worked with price sources "Average Cost" or "Weighted Average". If you
chose a "Most Recent" or "Nearest in time" then I think you need some quotes
in the Price Editor.


>
>
> 3. Balance sheet report
>
> The balance sheet report in USD shows a total of assets of 78USD and a
> total of liabs and equity of 0. In particular retained earnings (as part of
> equity) are 0.
>

When generating the balance sheet in USD with a price source of "Most
Recent" and to quotes in the Price Editor, I get the same results. However,
the report works fine for me with the "Weighted Average" price source.


>
> Q4: Is this a bug? I would expect retained earnings to be the balancing
> item here.
>

Obviously it should balance... We are running with a price source of "Most
Recent" and no Price Editor quotes, so the exchange rate is zero. Therefore
the retained earnings of EUR 49.62 are worth USD 0. So the retained earnings
line is correct (given the zero exchange rate). It seems to me that you
should see an unrealized currency gain of USD 78 to balance the report.

In 2.2.5, the balance sheet only calculated unrealized gains/losses on
assets. In trunk the balance sheet calculates unrealized gains/losses on
assets and liabilities. I have to run out the door at the moment, but
perhaps you could provide a suggestion as to how to fix this.

-Charles


>
> BTW: The balance sheet in EUR is balanced. Net income is recognized in
> retained earnings. I wait for some conclusion in another thread how GnuCash
> calculates retained earnings and how it is related to net profit.
>
>
> Thank you for your input. If needed I can file a bug report on some or all
> of the questions above.
>
>
> --
> Best wishes,
> J.
>
> GC v2.2.5/WinXP
>
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