On Sat, Oct 31, 2015 at 4:39 PM, Lifepillar <[email protected]>
wrote:

> The problem is this: My accounts (expenses etc) are mostly in Indian
>> Rupees.
>> I invoice the client in GBP. The money comes into the bank in India and
>> get
>> converted to the Indian Rupee at a conversion rate of the day it arrives
>> in.
>> How do I account for this in the journal? I would appreciate a short
>> example
>> transaction.
>>
>
> Although Ledger has several features to deal with multiple currencies,
> I find the currency trading account method extremely appealing and clean,
> because it does not require any special syntax (search the web for the
> tutorial on multiple currency accounting by Peter Selinger - which has been
> discussed in this list a few times in the past). It may or may not work for
> you, depending on your requirements.
>
> John's example would be rewritten as follows:
>
> 2009/06/03 Exchange cash
>    Assets:Cash                               £41.71
>    Assets:Cash                              $-75.00
>    Income:Currency
>
> 2009/06/03 Exchange cash
>    Assets:Cash                              £564.91
>    Assets:Cash                        XCD -2,730.00
>    Income:Currency
>

Note that the usage of an auto-posting in this way effectively nuls and
voids the verification the double-entry system provides you with. You can
put any garbage numbers in there and it will still work (just to be clear:
that's _not_ what we want).

A better approach would be to post-process the transactions to convert what
John suggested previously into equivalent transactions for currency
accounts, without bypassing the balance check. In Beancount, you can
implement that with a plugin, one that allows you to automatically using
Peter's currency trading method, without having to insert a special account
(the plugin would automatically insert transactions whenever groups of
postings with the different currencies don't balance perfectly).




Then, `ledger bal assets` and `ledger reg cash` would produce equivalent
> reports for both examples. One advantage (IMHO) of this method is that
> reports balance to zero more often (try `ledger reg`, for example).
>
> Note that you only need one trading account (Income:Currency) for all your
> currency exchanges, although you are free to use more if you want.
>
> Enjoy,
> Life
>
>
>
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