gnucash-user Digest, Vol 79, Issue 28

[rsbrux at yahoo.com]

Thanks for responding, Mike.
Date: Wed, 21 Oct 2009 16:57:05 -0400
From: Mike or Penny Novack <stepbystepfarm at mtdata.com>
Subject: Re: Multiple currencies in GnuCash, Vol 79, Issue 27
To: "rsbrux at yahoo.com" <rsbrux at yahoo.com>
Cc: gnucash-user at gnucash.org
Message-ID: <4ADF75A1.8070001 at mtdata.com>
Content-Type: text/plain; charset=ISO-8859-1; format=flowed

rsbrux at yahoo.com wrote:

>I am a little disconcerted by the recent remarks, both in the issue mentioned above and also several weeks ago, about the difficulties of using GnuCash with multiple currencies.
>As an American living in Switzreland, this is an essential feature for me.  I was planning to migrate to GnuCash from a no longer supported OEM version of Quicken 2001, which Intuit customized for UBS.  After reading about the pain some users are having with multi-currency, I'm not so sure anymore.  UBS Quicken is easy to use, but has a few annoying quirks and no way of downloading data, since UBS discontinued support.
>If GnuCash isn't the answer, what is?
>Who is using GnuCash successfully in a multi-currency environment, and what kind of hoops must I jump through to get there?
>TIA for any feedback!
>  
>
I am not quite sure we are clear about either the expectations or the 
usual accounting practices when dealing with multiple currencies -- and 
with that presumably different for those intentionally "trading" in 
currencies than for those where this is incidental. As usual I will 
claim that unless/until we understand what would be done the old 
fashioned way, pen and ink on paper accounting, we have no way to 
determine what if anything GnuCash isn't doing properly.

There are also legal/jurisdiction problems (WHEN are you allowed 
to/required to recognize gains or losses in currency transactions?)

Michael

-- 
There is no possibility of social justice on a dead planet except the equality of the grave.

Here is an attempt to clarify at least *my* requirements.
Although I don't actively trade in ForEx, I need to be able to record transactions which may originate in one currency and terminate in another (sorry, I don't yet know the proper accounting terminology, so please bear with me).  Here are some examples:
1) My investment portfolio contains securities denominated in various currencies.  Consequently dividends, buy and sell transactions may result in credits or debits to cash balances (accounts) in any of these currencies.  From what I have read here it sounds as though GC can handle this.
2) I sometimes need to transfer cash between accounts with differing denominations.  The transfer will take place at a rate determined by the financial institution(s) involved, so I must be able to specify the conversion rate on a per-transaction basis.  Of course, it would be nice if the balancing entry were automatically calculated (as a first approximation) using the rate quoted on the day of the transaction, as I often don't find out until later what rate was actually used.  IAC, I need the ability to override the quoted rate both when entering the transaction and after the fact.
3) As already mentioned on this list, I sometimes charge purchases in a currency foreign to the credit card being used (e.g. purchases in Euro or US$ on a Swiss credit card).  In this case, I will only find out what rate was applied on receiving the credit card statement.

If GC can handle these 3 classes of transactions cleanly, I should be able to work with it.
Thanks again!