[GNC] Multiple currencies in split tx

[list+gnucash at jdlh.com]

Hello, HSC:

Welcome to GnuCash.

On 2022-06-30 13:30, HSC wrote:
> ...Is it possible to account in one GC split entry for a tx in which a payment processor simultaneously makes a payment to two different vendors in two different local currencies?...

In my experience, yes. I have made some transactions like this.

> We see it on the statement as one payment in source currency and two in destination currencies, without any details regarding conversion rates.
>
> Do we have to calculate all that manually, and enter in GC as two separate txs?

My suggestions:

1. Read the "Multiple Currencies" section of the GnuCash Tutorial and 
Concepts Guide 
<https://www.gnucash.org/docs/v4/C/gnucash-guide/chapter_currency.html>

2. Enable trading accounts (see 12.3 Automatically Recording Currency 
Transactions…). I have always used trading accounts in GnuCash, so I 
have no experience without trading accounts.

3. Know that each transaction has a default currency, but GnuCash does 
not easily show you which currency that is. GnuCash sets the default 
currency to be the currency of whichever account you were in when you 
created the transaction.  If you have three currencies, $AA, $BB, and 
$CC, and you want the transaction's default currency to be $CC, then go 
to an account register which has $CC as its currency, and create the 
transaction there.

4. You will have to establish an exchange rate between the currency of 
each split of the transaction, and the default currency of the 
transaction. For each split, if the account for that split uses the 
transaction's default currency, GnuCash will accept the amount you type 
in for that transaction. If the account for that split uses a different 
currency, then GnuCash will display a "Transfer Funds" dialogue (See 
12.3.2.2. Transfer of Funds to a Foreign Currency). You will have to 
determine an amount of the transaction's default currency which 
corresponds to the split amount, in the split account's currency.

4.example. Suppose you have a transaction where you pay $AA 4.00, and 
the payment processor pays out $BB 2.00 and $CC 1.00. Go to the source 
account, which uses $AA. Enter a split for that account with the amount 
4.00. Add a split with an account which receives the $BB 2.00. Enter the 
amount 2.00. A "Transfer Funds" dialogue appears. Enter the amount of 
$AA which corresponds to $BB 2.00. (You need to determine this yourself, 
if the payment processor does not document it for you.) Then add another 
split with an account which receives the $CC 1.00. Enter the amount 
1.00. In a similar way, fill out the Transfer Funds dialogue to set up 
an exchange rate between $AA and $CC.

5. GnuCash enforces a rule that, within every transaction, the sum of 
all splits using a currency sum to zero. This includes splits with 
trading accounts, which GnuCash creates based on what you entered in the 
"Transfer Funds" dialogue.

5.example. In the transaction with a source payment of $AA 4.00, there 
will be one split involving the source account, with a value of $AA 
4.00, and one or two splits involving the TRADING:$AA account, summing 
to -$4.00. The sum for all the splits in $AA is zero.

6. Note that you can use GnuCash as a calculator, by entering 
expressions in amount fields. See GnuCash Guide, 2.9.2.4. Using Entry 
Shortcuts. I use this for splitting the calculating a fraction of the 
total for individual splits.

This is complicated to describe in words. I recommend doing some trial 
and error to experiment, and learn it that way.  Save a copy of your 
Book file as another name. Open that copy, and make some test 
transactions. When you understand what you want to do, open your 
original Book file, and enter the transaction.

Does that help?

Best regards,
       —Jim DeLaHunt



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