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Eric Hanchrow's currency doc patch.
git-svn-id: svn+ssh://svn.gnucash.org/repo/gnucash/trunk@2587 57a11ea4-9604-0410-9ed3-97b8803252fd
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@ -63,6 +63,65 @@
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"xacc-double.html#IDENTITY">double entry accounting
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identity.</a></p>
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<h1>
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How to set up a foreign-currency account
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</h1>
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<p>All of the above may sound straightforward, but you may get
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stumped when you first try to represent some foreign money. Let's
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demonstrate how you'd go about setting up an account to represent,
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say, French Francs.</p>
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<p>Let's say you have an account that holds cash in US dollars,
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and it has $1,000 in it. You want to buy about $100 worth of
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Francs, and naturally you'd like to represent those Francs in
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their own account. Here's what you need to do:</p>
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<ol>
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<li>
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Create a new account (name it "Francs") of type Cash, with a
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currency of FRF (that's the ISO code for French Francs; see <a
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href="#ISOCURR">ISO Currency Codes</a>, below).
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</li>
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<li>
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Create <em>another</em> account (name it "Trading"), of type
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Currency, with a currency of USD, and a <em>security</em> of
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FRF. This account will represent <em>trades</em> between the
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two currencies, or to be more precise, purchases of Francs
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with dollars.
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</li>
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<li>
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Now open the "Trading" account, and enter a transaction that
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transfers from your cash account. Put 555 in the "Bought"
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column, and .18 in the Price column. You've now bought 555
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Francs for $0.18 apiece.
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</li>
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<li>
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Last step: transfer the $99.90 that is now in your trading
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account into the "Francs" account. Note that you could not
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have transferred anything directly from cash to Francs (try
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it); those two accounts do not have a currency in common.
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</li>
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</ol>
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<p>A few unpleasant things you may have noticed about the above
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procedure:</p>
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<ul>
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<li>
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All the numbers you see in the "Balance" column of your main
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window are in dollars, even the "Francs" account. This is a
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bug. Worse, the "Assets" figure at the bottom is simply
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wrong: it should read $1,000, but instead reads $1,455.10,
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having apparently added your 555 Francs directly to your 900.1
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remaining dollars.
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</li>
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<li>
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It's confusing. This could also be considered a bug.
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</li>
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</ul>
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<p>Notwithstanding the above unpleasantness, this is how you deal
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with foreign currencies in GnuCash. The key is that you need a
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trading account whose Security field names a different currency
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than its Currency field, and your trades must go "through" this
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trading account.</p>
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<h1>ISO Currency Codes</h1>
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<a name="ISOCURR"></a>
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