No. $6 (real amount) and 13 GBP (another real amount) are entered. The ratio between these two numbers will remain the same always.
But if GnuCash reports the price as 0.4615384615 and your broker says it's .46, are you going to worry that your books don't match your broker? David T. On Nov 6, 2024, 10:45 PM, at 10:45 PM, Boniforti Flavio <bonifort...@gmail.com> wrote: >Hi David. >I'm replying to your feedback as it's less text :-) I'll reply to >Richard's >afterwards as well - thanks to you both already! > >And a final note: GnuCash never stores the exchange rate. It calculates >it >> from the two (actual) amounts include in the transaction. Focusing on >the >> number there (and whether it matches what the broker says the share >price >> is) will result in dissatisfied experiences since it never matches. > > >Are you saying that if I enter a transaction which involves currency >exchange and I look at that transaction in two months, the numbers >won't be >the same anymore? > >https://www.instagram.com/boniforti_music >https://soundcloud.com/boniforti_music >https://bonny-j.bandcamp.com > > >Am Di., 5. Nov. 2024 um 05:23 Uhr schrieb sunfis...@yahoo.com < >sunfis...@yahoo.com>: > >> Note: I am not an accountant, and am based in the US, whose laws will >> differ from Switzerland's. >> >> I agree that the Dividends account belongs under Income. >> >> As an overview, Richard, I'd point out that if you buy something for >1000, >> and 10 of the cost is for tax (or delivery, or service charges, or >> whatever), your cost is still 1000. While it may be interesting to >identify >> those specifics, for personal books, it is a lot of work that has >little >> benefit. >> >> In specific: >> >> Many forex outfits I encounter don't even tell you their fees. They >simply >> tell you the final exchange rate you receive. To track the fees, >you'd have >> to know the inner workings of each firm and calculate them yourself >(or >> know the rate they are getting, and calculate the difference) . >Personally, >> it's not important information for the amount of work involved. (This >is >> similar to the recurring discussion about mortgage payments that do >not >> match) >> >> Similarly, with the stock, you can say that you bought that stock at >9.50 >> a share, but if you don't recoup the service charge, you'll still >lose >> money when you sell at 9.75 a share. Moreover, in GnuCash, if you use >the >> lot feature to manage capital gains, it will mis-calculate the gains >if you >> track the service fees separately. At least, that was my experience >when I >> used the lot feature some years back. (I stopped using it for >various >> reasons) >> >> And a final note: GnuCash never stores the exchange rate. It >calculates it >> from the two (actual) amounts include in the transaction. Focusing on >the >> number there (and whether it matches what the broker says the share >price >> is) will result in dissatisfied experiences since it never matches. >> >> David T. >> On Nov 5, 2024, at 3:59 AM, R Losey <rlo...@gmail.com> wrote: >>> >>> Hello. >>> >>> I don't think that the "USD Dividends" would be under IBKR - that >should be >>> somewhere else, probably under "Income" somewhere. When you are paid >a >>> dividend, it either goes into the "Cash" fund, or else it is >reinvested and >>> more stock is purchased. If the dividends are invested, you'd have >a >>> "purchase" of that stock. For example, if you received $100 in >dividends >>> and it purchased 5 shares of VT stock (using simple numbers to keep >it >>> easy), you have a transaction in IBKR-VT that purchased 5 shares for >$100 >>> and the "other" account would be an income account -- for me, it >goes in >>> "Income:Investment Income:Taxable:Dividends". >>> >>> Other comments -- see below, but I do want to note (as others have) >that I >>> am not an accountant. >>> >>> >>> On Sun, Nov 3, 2024 at 4:25 AM Boniforti Flavio ><bonifort...@gmail.com> >>> wrote: >>> >>> Hi Richard. >>>> I think I was already going that route --> >>>> [image: image.png] >>>> >>>> As of now, I have just put all the CHF Cash in that account. >>>> As I've added CHF in 5-6 different transactions and in between >those I >>>> have also converted to USD and bought VT stocks, would I need to >zero the >>>> "CHF Cash" account, then add each CHF wire transfer transaction >>>> individually? >>> >>> >>> >>> If each wire transaction is separate, there is the chance that the >exchange >>> rate would be different, so I would enter them as different >transactions. >>> >>> But unless you take all of the funds from the CHF Cash account, it >doesn't >>> need to be zeroed. Assuming that there is $1000 in CHF Cash and >$1000 in >>> USD Cash, you could remove any or all of the CHF Cash, and then add >the >>> appropriate USD amount to the USD Cash account. >>> >>> Next, you would have a transaction for the purchase of VT stock, >with the >>> funds comes from the USD Cash account. >>> >>> >>> >>> And then for each currency conversion I did, create the according >>>> transaction between "CHF Cash" and "USD Cash" accounts, after >which I would >>>> add the VT purchase transactions - right? >>> >>> >>> >>> That sounds right to me. >>> >>> >>> >>> If I do it like that, I could "hide" the ForEx trading fees by >simply >>>> adjusting the conversion rate (like if I had converted CHF 1'000.- >and I >>>> got USD 1'140.- and paid 1 USD fees, I could just "ignore" the fee >and >>>> adjust the conversion rate so that it gives CHF 1000 --> USD >1140). Would >>>> that work? >>> >>> >>> >>> It may "work" but it would probably be more accurate to have a split >>> transaction with that shows the CHF 1'000 decreasing by 1'000 and >then the >>> USD account going up by 1'141 with a USD 1 decrease assigned to the >account >>> where you track the exchange fees. That way the CHF-to-USD rate >would be >>> correct, and you could see what you are paying for exchange rates. >>> >>> >>> >>> | Would this process also work when buying VT stocks? In that case, >I buy a >>> fixed amount of VT stocks at the VT price, and I could >>> | "hide" the fees by adjusting the stock unit price?! >>> >>> Again, I suppose you **could** do that, but I usually put the fees >in >>> separately. If I spend $1000 purchasing a stock that is worth $998, >the >>> other $2 is assigned to my account for Investment Fees >>> ("Expenses:Investment:Fees") >>> >>> >>> >>> What's not clear to me at this point is: if I will have 1000 VT >stocks, >>>> where will the actual value be reflected/calculated? Is it >depending on >>>> manual retrieving the VT quotes via Finance::Quote? >>> >>> >>> >>> Yes, if you are getting quotes via the stock quote your VT value >will >>> reflect the last price update you retrieve. It will NOT change your >>> transaction. However, by "hiding" the fee as you propose, it will >look >>> like you've lost money when you have not. See the following example: >>> >>> You spend $100 to purchase 10 shares of VT, but there is a fee of >$5. The >>> reality is that you paid $95 for those 10 shares, or $9.50 a >share... >>> however, by "hiding" the fee in the price, it looks as if you paid >>> $10/share. The next day, the price goes up to $9.75 -- you have >actually >>> gained $2.50 ($0.25 gain on 10 shares); however, in GnuCash, it will >look >>> like the price has "dropped" from $10 to $9.75 and that you have >lost $0.25 >>> per share). >>> >>> >>> >>> Thanks, >>>> F. >>> >>> >>> >>> I hope this is helpful... >>> >>> >>> >>> >>>> Am Mo., 21. Okt. 2024 um 19:32 Uhr schrieb R Losey ><rlo...@gmail.com>: >>>> >>>> >>>>> -- >>>>> ------------------------------ >>>>> >>>>> Richard Losey >>>>> rlo...@gmail.com >>>>> Micah 6:8 >>>> >>>> >>>> >>>> _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
