Standard accrual accounting practice directs: * Foreign currency documents for payables and receivables should be recorded in the accounts on the dates they are raised in the foreign currencies with corresponding local currency using the then prevailing exchange rate. * Foreign currency payments and receipts are recorded on the date of payment of receipt with corresponding local currency entries at the then prevailing spot rate.
Clearly the exchange rates between raising the document and its payment will almost certainly be different thereby creating a currency gain/loss in the profit and loss account. GnuCash does not appear to handle this automatically. As a result, a difference in the Trial Balance equal to the currency gain/loss arises. The trail balance error is equal to the exchange rate gain/loss that appears in the local currency's Trading account. Can someone tell me if I have missed something in GnuCash. Or is this a feature omission in GnuCash? As an aside, GnuCash provides the "Lots" feature for handling capital gains. The currency gain/loss issue is conceptually no different. _______________________________________________ gnucash-user mailing list [email protected] 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.
