[GNC] Fwd: Balance sheet shows 1c imbalance when JPY foreign currency accounts are present

[john]

Forwarding to the list on Socket Grips's behalf.

> Begin forwarded message:
> 
> From: socket-grips0c at icloud.com
> Subject: Re: [GNC] Balance sheet shows 1c imbalance when JPY foreign currency accounts are present
> Date: August 11, 2023 at 19:57:34 PDT
> To: jralls at ceridwen.us
> 
> Thanks John, I have applied your solution and edited each test transaction to hard-code the amounts and let the price be auto-calculated (sample file attached). 
> 
> I have also turned on trading accounts and let Gnucash rebalance each transaction to add the trading account splits.
> 
> These changes fixed the mismatched balance sheet report, but not the balance sheet (multicolumn) report, which still shows a 1c difference. 
> 
> The difference appears to arise because the balance sheet (multicolumn) report calculates subtotals in home currency, whereas the regular balance sheet report calculates subtotals in foreign currency and then converts them. This behaviour appears dependent on specific amounts used however, as rounding differences can appear in both reports.
> 
> My mail client settings appear to be blocking the option to cc the list server, I may subscribe using a different mail account to resolve this. 
> 
> 
> 
>> On 11 Aug 2023, at 1:58 pm, john <jralls at ceridwen.us> wrote:
>> 
>> This is not uncommon, different banks have different rounding policies and GnuCash can't guess what they might be for your bank. The solution is to tell GnuCash the value in both currencies and let it calculate the price, because while currency amounts have to be rounded, prices don't.
>> 
>> Regards,
>> John Ralls
>> 
>> 
>>> On Aug 9, 2023, at 20:11, socket-grips0c--- via gnucash-user <gnucash-user at gnucash.org> wrote:
>>> 
>>> Hello, I am encountering some rounding discrepancies when using foreign currency bank accounts. This means balance sheet total assets don’t match balance sheet total liabilities.
>>> 
>>> The issue arises when I have two bank accounts in JPY and using AUD as my home currency. Certain combinations of JPY account balances and exchange rates produce a balance sheet with 1c rounding differences. 
>>> 
>>> This is problematic as it means I can’t generate balance sheets that balance reliably. This means I’m unable to finalise accurate books to provide to an accountant.
>>> 
>>> Reports will show different values based on report options, but expected behaviour would be for balance sheets to always balance. I would also expect balance sheet and balance sheet (multicolumn) to produce the same totals.
>>> 
>>> The desired fix would be able to run the standard balance sheet report and have it consistently produce assets = liabilities.  
>>> 
>>> A test uncompressed XML file with only two transactions is attached. I have not turned on trading accounts in this test book, but I have observed the same behaviour in my personal books with trading accounts turned on. 
>>> 
>>> Screenshot 1
>>> Accounts and balances.
>>> 
>>> Screenshot 2
>>> Standard balance sheet set to default settings. Report correctly combines foreign currency balances to generate correct subtotal. So the subtotals are correct based on foreign currency total holdings. But this means the subtotal of assets is 1c (0.01) different to the subtotal of liabilities. The balance sheet does not balance. 
>>> 
>>> Screenshot 3
>>> Balance sheet (multicolumn) shows correct totals, but subtotals ignore foreign currency totals. Subtotals appear to roll up based on local currency converted amounts, not underlying foreign currency totals. This is different behaviour to the standard balance sheet. 
>>> 
>>> Screenshot 4
>>> Trial balance using last up to report date currency conversion shows matching totals, but these differ by 1c from balance sheet (multicolumn). Difference appears to relate to 1c unrealised gain.
>>> 
>>> Screenshot 5
>>> Trial balance using weighted average of past transactions conversion shows totals that differ by 1c. Also shows fractional exchange rate. 
>>> 
>>> Screenshot 6
>>> General journal shows 1c lower total.
>>> 
>>> <test-balance-sheet-foreign-currency.gnucash><1. two bank accounts in JPY.png><2. balance sheet in home currency AUD shows 1c error.png><3. balance sheet multicolumn shows totals correct.png><4. trial balance totals dont equal balance sheet totals using last up to report date currency conversion option but show 1c unrealised gain.png><5. trial balance using weighted average currency conversion shows different totals.png><6. general journal shows differing exchange rates due to real numbers used internally in gnucash.png>_______________________________________________
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