Thanks, Geert,
I will respond between the lines.
On 29.6.2018 17:58, Geert Janssens wrote:
Hi Norbert,
I don't know the accounting customs of your country,
There are no general accounting customs set - everybody does what seems
to cover the needs of he place.
so first a question:
Is it common in Cambodia to *account* in two currencies as well or only to
*pay* in two currencies ?
In daily life, we may *pay* in either of the two currencies - it is only
customary to make payments in Riel for small and in US$ for larger
amounts. But again, there is no general definition what is "larger" - it
is easier to handle bigger "values" in US$, where 1 US$ corresponds to
roughly 4000 Riels.
We may ask in our shop - as an example - for a price of US$ 4.00, but
the person may hand over 16,000 Riel. Or the other way round. I do not
know if there are many countries with such a situation. But here it is
totally flexible - every person, for every purchase, may choose one way,
and the next minute for another purchase the other way.
So the answer is: BOTH - we pay in two currencies, but we also have to
account in two currencies.
So in the shop we have a Riel cash box, and a US$ cash box, and while we
enter for each purchase an amount - and I have to enter the amount
either into the "Cash in wallet $" or into the "Cash in wallet Riel" -
because we have all the time changes in both cash boxes. And for the
same purchase I enter the amount either into the sub-account "Vegetables
$" or "Vegetables R" - both under ONE Placeholder account "Vegetables"
(set for US$)
Or put differently - do you want to track your income in the two currencies or
just in one (hence the placeholder account) ?
For the actual conducting of purchases, I am tracking the US$ purchases
and the Riel purchases separately - but I put both under ONE placeholder
because I am not only interested in individual purchases, but also in
the overall income (or loss) situation. I had assumed to have a common
placeholder would serve this purpose. Maybe this was wrong.
But you do want to be able to
accept/make payments in the two currencies ?
Yes - it depends on the buyer - depending of which of the two currencies
he of she has in their purse.
If you only want to accept/make payments in two currencies but just track it
in one, the account structure would be slightly different.
"track it only in one" - for the actual operation of the shop this is
not possible. I have to know - at the end of the day - how many US$,
and how many Riel, should be in the cash boxes.
If you want to track your income in multiple currencies as you have set up,
you'll need to make sure you have entries in your price database for
conversion rates between USD and Cambodia Riel.
In my former mail, I had said: "(In Tools, Price Editor, I have set
Khmer Riels as the second currency in addition to US$.)" - saying that 1
US$ corresponds to 4000 Riel, with hardly any fluctuation. Any more to do?
But while I have to keep track of the actual cash in the cash boxes, at
certain times (daily, weekly, monthly etc.) I also need to know "how we
did as a business" and this should say something in US$ (for all the
activities which did happen in both currencies).
Or more generally between your
book's currency and the foreign currencies you trade in.
Well, I do not feel that "we trade in a foreign currency" - both
currencies co-exist here in everybody's wallet. Te bill from the
electricity company comes in Riel, the bill from the ISP comes in US$ - etc.
So what else can you please suggest to me to do?
Really many thanks,
Norbert
Regards,
Geert
Op vrijdag 29 juni 2018 12:28:00 CEST schreef Norbert Klein:
How to regularly use two currencies
I would very much appreciate if somebody could help me to solve a problem.
In GnuCash 2.6.19,on a Windows 10 computer, I made the following
arrangements – but maybe my assumptions were wrong, as I cannot see the
results I had hope for. I do not have much experience, so I dare to ask
for advice and help.
I live in Cambodia, where it is usual all over the country to use two
currencies regularly: the Cambodian Riel, and the US$ (at normally 4000
Riel per Dollar).
(In Tools, Price Editor, I have set Khmer Riels as the second currency
in addition to US$.)
I live on a farm, where, among other things, we produce, sell, and buy
vegetables.
Under Income, I created an account FARM, and under FARM an account SHOP,
and under shop a Placeholder account VEGETABLES (currency USD). Under
VEGETABLES I created a VEG$ sub-account for business in US dollars, and
another sub-account VEGR for business in Riels.
Now I enter all business actions into VEG$ or VEGR, either as Income or
Charge, according to the currency used.
After some entries, I can see the calculated result (gain or loss) in
US$ in the Placeholder account VEGETABLES.
I had hoped that the entries in VEGR would be transferred into US$ and
also be part of the reported results in the placeholder account
VEGETABLES – but this is not the case.
Now my kind request:
1) please tell me if there is a way to get also the Riel values
reflected in the Placeholder account above the VEGR; I had assumed that
this should be possible with Placeholder accounts which are “intended to
be used for hierarchical organization of accounts” - but maybe not when
different currencies are involved?
2) please give me advice if all this is wrong – how could I handle our
situation? Every purchase and sale has to be recorded in one of the two
currencies.
My hope was to get the overall results in US dollars in this way – and
the goal remains the same: at the end of he day/week/month, I want to
know how we did manage – all calculated in US$.
Thanks for any help.
Norbert KLEIN
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