IMHO the foreign currency AP/AR is a "feature" which shouldn't exist, and all foreign invoices/bills should be converted to your "home" currency.
It would be best to refer to the IFRS standards (ref IAS 21): https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards/english/2021/issued/part-a/ifric-22-foreign-currency-transactions-and-advance-consideration.pdf "Paragraph 21 of IAS 21 The Effects of Changes in Foreign Exchange Rates requires an entity to record a foreign currency transaction, on initial recognition in its functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency (the exchange rate) at the date of the transaction. Paragraph 22 of IAS 21 states that the date of the transaction is the date on which the transaction first qualifies for recognition in accordance with IFRS Standards (Standards)." Alternatively US GAAP standards ASC 830 On Wed, 25 Feb 2026 at 08:48, Stellios & Sally <[email protected]> wrote: > 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. > _______________________________________________ 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.
