Single Foreign Currency Account Payable

[Maf. King]

On Sat 24 October 15 14:30:44 John Whitmore wrote:
> Starting out on the Business side of things and on the wrong end of the
> learning curve so there may be one or two stupid questions.
> 
> I'm operating in Euroland so all my accounts are in Euro. I've added a
> vendor of amazon.co.uk and purchased a couple of items. They operate in GBP
> Sterling so issue me an itemised bill in GBP but list the total payment in
> Euros because I've paid with a Euro Debit Card.
> 
> Now I've added amazon as a GBP vender and created a Bill in which I enter
> the various items in the sterling amounts and the 20% VAT
> 
> that's all good but the bill won't allow me to check the "Invoiced ?" field.
> I assume because it don't like the currency.
> 
> I tried to post the bill but that won't happen either again I assume because
> of the curreny issues.
> 
> I have read the Foreign Currency section but the examples there deal with
> people who have actual Bank Accounts in US Dollars and Hong Kong whatevers.
> I don't have multiple currency accounts I only have one, Euros.
> 
> Given all that I assume then that what I should do is change amazon to a
> Euro account and convert all the currencies manually. I know it's not
> difficult I've been given a total in GBP and in Euro so I should be able to
> work back from that ;-)
> 
> My question is: Is there a simpler way? I guess I hoped that I could tell
> GnuCash the total in Euro and that it would automatically convert the
> individual items and VAT to the necessary Euro amounts before updating the
> Expense Accounts and Liability accounts.
> 

Hi John.

Since you don't hold any GBP accounts, do you really need to track the GBP 
value of the purchases?  If you've paid in euro and they show the euro total 
on their bill, it seems to me that the GBP - EUR conversion rate is fixed, and 
pretty much irrelvant, unlike where you hold a foreign currency account where 
daily rate changes affect the value of your holding (in respect of your "base" 
currency)

What I'm trying to say is, is it worth tracking in GBP?

0.02
Maf.