Am 07.11.2018 um 01:32 schrieb Matthew Pounsett: > On Tue, 6 Nov 2018 at 15:30, Christian Kluge <frakturfr...@gmail.com> wrote: > >>> The currency logic is pretty simple: every amount you see in the invoice >>> entries is assumed to be in the customer's default currency. They income >>> account for each entry can be in a currency different from the invoice >>> account. In that case a currency conversion will be applied when posting >> this >>> amount to the income account. But as amounts for billable items come >> from the >>> entries, they are assumed to be in the customer's currency. >> >> >> That’s why my solution would be never to income and expense accounts in >> foreign currencies, but only assets and liability accounts in addition >> to the trading accounts. >> > > Expense accounts mostly get smoothed into one currency by the effects of > having banks convert on deposit or charge in bank accounts and credit > cards. Although I still have to deal with foreign currency service charges > on international wire transfers. > > I don't think it's reasonable to expect to have only one income currency > with international clients.
It’s not resonable to use different currencies for income and expense accounts and the expense accounts are no going to be smoothed out by paying them with your standard bank account because of the fluctuating exchange rates. I’m not saying that you can’t bill your clients in other currencies or that they can’t pay you in their home currency. Although some might prefer to pay in your currency, because of the DCC issues. If you’re using foreign currency expense accounts and have some transactions throughout the year, open up a profit and loss report with only one currency and play a bit with the conversion settings. Since your liabilities are fully paid, there shouldn’t be any fluctuation in the values anymore, but with your method there will be. If you’re just recording those transactions through asset and liability accounts and leave the income and expense accounts in the default currency, the only time you have to account for the realized currency exchange gain/loss when you’re paying your liability. I can’t tell which exchange rate you’ll have to use when setting up the balance sheet, since I don’t know the specifics of your jurisdiction. Better check with an CPA there. Kind regards Christian Kluge _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
