[GNC] Reporting Exchange Rates

[Bo Buckley]

Thank you John for your reply. Yes, I think I'll end up using the manual
adjustment of the Dec 31 price as you mentioned until I can figure out a
way to convert individual transactions more efficiently.

Thanks again.

On Sun, Feb 16, 2025 at 3:04 AM John Ralls <jralls at ceridwen.us> wrote:

>
>
> > On Feb 14, 2025, at 19:58, Bo Buckley <topherbuckley at gmail.com> wrote:
> >
> > In all examples I've seen so far with regards to the handling of foreign
> > currencies the user is physically moving money from one currency to
> another
> > (e.g. an online transfer) where an actual exchange occurs. What about the
> > case where users have to do reports for different countries in their own
> > respective currency (e.g. Japan in JPY and US in USD). I must report all
> > income in both Japan and the US (thanks IRS!) so I need a way to convert
> my
> > books between USD and JPY.
> >
> > For example say I have an Expenses:Advertising account with account
> > currency USD and book currency USD. I can deduct these as business
> expenses
> > both on US and Japanese reports, but I must convert them all to JPY to do
> > so. Is there any way of doing this within GNUcash? Until now I've just
> been
> > creating an Income Statement in USD and copying this to a spreadsheet and
> > converting from there (not ideal).
> >
> > I see in the Income Statement options, I can change the Report's currency
> > to JPY, but what is going on in the background here? Are all transactions
> > converted per date, or just a single rate used on the totals? Based on
> what
> > I can see at the bottom of the report, it appears to use the most recent
> > rate limited by the report ending date (e.g. 12/31/2024), which would not
> > be a standard way to report this. The two options I was told from a
> > Japanese accountant to use would be
> > 1. (Yearly Average TTS + Yearly Average TTB) / 2  from a Japanese bank
> > (e.g. https://www.murc-kawasesouba.jp/fx/year_average.php)
> > 2. (Preferred) Use exchange rates specific to each transaction.
> >
> > Thanks in advance for any advice.
>
> Which rate is used depends on the price source you pick in the commodities
> tab of report options. You can manually create a year-average rate on 31
> December using the price editor and set the price source to Closest to
> report date (the default).
>
> Ideally you’d use the splits’ JPY values (assuming that all of your
> Japan-taxable transactions begin in a JPY asset account and so have a JPY
> transaction currency). Unfortunately even the transaction report doesn’t
> provide that.
>
> Regards,
> John Ralls
>
>
>