[GNC] How to regularly use two currencies

[Geert Janssens]

Hi Norbert,

I don't know the accounting customs of your country, so first a question:
Is it common in Cambodia to *account* in two currencies as well or only to 
*pay* in two currencies ?

Or put differently - do you want to track your income in the two currencies or 
just in one (hence the placeholder account) ? But you do want to be able to 
accept/make payments in the two currencies ?

If you only want to accept/make payments in two currencies but just track it 
in one, the account structure would be slightly different.

If you want to track your income in multiple currencies as you have set up, 
you'll need to make sure you have entries in your price database for 
conversion rates between USD and Cambodia Riel. Or more generally between your 
book's currency and the foreign currencies you trade in.

Regards,

Geert

Op vrijdag 29 juni 2018 12:28:00 CEST schreef Norbert Klein:
> How to regularly use two currencies
> 
> I would very much appreciate if somebody could help me to solve a problem.
> 
> In GnuCash 2.6.19,on a Windows 10 computer, I made the following
> arrangements – but maybe my assumptions were wrong, as I cannot see the
> results I had hope for. I do not have much experience, so I dare to ask
> for advice and help.
> 
> I live in Cambodia, where it is usual all over the country to use two
> currencies regularly: the Cambodian Riel, and the US$ (at normally 4000
> Riel per Dollar).
> 
> (In Tools, Price Editor, I have set Khmer Riels as the second currency
> in addition to US$.)
> 
> I live on a farm, where, among other things, we produce, sell, and buy
> vegetables.
> 
> Under Income, I created an account FARM, and under FARM an account SHOP,
> and under shop a Placeholder account VEGETABLES (currency USD). Under
> VEGETABLES I created a VEG$ sub-account for business in US dollars, and
> another sub-account VEGR for business in Riels.
> 
> Now I enter all business actions into VEG$ or VEGR, either as Income or
> Charge, according to the currency used.
> 
> After some entries, I can see the calculated result (gain or loss) in
> US$ in the Placeholder account VEGETABLES.
> 
> I had hoped that the entries in VEGR would be transferred into US$ and
> also be part of the reported results in the placeholder account
> VEGETABLES – but this is not the case.
> 
> Now my kind request:
> 
> 1) please tell me if there is a way to get also the Riel values
> reflected in the Placeholder account above the VEGR; I had assumed that
> this should be possible with Placeholder accounts which are “intended to
> be used for hierarchical organization of accounts” - but maybe not when
> different currencies are involved?
> 
> 2) please give me advice if all this is wrong – how could I handle our
> situation? Every purchase and sale has to be recorded in one of the two
> currencies.
> 
> My hope was to get the overall results in US dollars in this way – and
> the goal remains the same: at the end of he day/week/month, I want to
> know how we did manage – all calculated in US$.
> 
> Thanks for any help.
> 
> Norbert KLEIN
> 
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