[GNC] gnucash_user: rounding errors and significant digits
Ken Farley
farleykj at gmail.com
Sat Sep 9 15:19:53 EDT 2023
I really don't see what is so difficult to understand about this.
The key equation is AMOUNT = PRICE * SHARES
Gnucash works under the philosophy that two of those terms must be
maintained precisely:
AMOUNT - the total cost of the transaction. What you ultimately paid in
the currency of your particular account.
SHARES - how many units of the security were sold/bought.
The PRICE, the amount paid per SHARE for this one transaction, is
calculated using the other two. It's more an informative value than
anything else.
What I really care about when I get my statements from investment
institutions, or trade notifications, is the number of SHARES involved
and the total cost to me. It truly does not matter as far as maintaining
a good set of books for my finances, what the exact to-the-20th-decimal
PRICE was. I just want the SHARES and my current cash balance to be in
agreement when compared to a financial institution's statement.
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