Foreign Currency results in non balanced balance sheet

c-a-l c-a-l at earthlink.net
Sun Mar 7 23:01:40 EST 2010


Finally it is all entered.

I learned almost EVERYTHING has to originate in an account defined in US
dollars.

Proceeded with item 1 above.  One shortcut is that once you get a
transaction that results in a correct balance sheet, just duplicate it,
change the amounts, and change the accounts from which it come.  That helps
eliminate the deleting & reentering the same transaction.  So I can get
everything in and balanced, but I have to do the math for the program before
I enter the transactions (since I have the Euro interest paid, and exchange
rate, but I have to enter it expressed in dollars.  Argg.)

For the transfers between Euro and US dollar accounts, those also need to
originate in dollars.  So if I want to enter a transfer of 1k Euro from a
Euro account to a US dollar account, I need to originate the transaction in
the US dollar account, in US dollars.  The balancing entry in that account
is to the Euro account, but expressed in US dollars.  Then an exchange
window comes up, I enter the exchange rate (which I have to calculate,
knowing the US dollars and the Euro amounts in both accounts).  When I
"jump" to the Euro account, the same transactions shows, but expressed in
Euros.

Glad I finally got this to work.  I cannot quite figure out why it matters
so much to GnuCash where the transaction originates.  Example:
Exchange rate of $1.50/euro (I wish)
Enter transaction in account defined in Euros as interest of 10 Euro,
balancing transaction to Interest: Euros (defined in dollars).  You get an
imbalance.
Enter transaction of $15 in Income:Interest: Euros, with balancing
transaction to Asset: Euro Checking, and the thing balances.

I sure hope the balance sheet "keeps" it's balance!
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