Re: [GNC] Accounting Equation Mismatch for Foreign Currency/Security
Gnucash Developers and Maintainers: Hello! The reporting needs of my book would be the accounting equation: "Assets = Liabilities + Equity" would be balanced after I conducting carrying forward to my account book. Therefore, the data in the account book file would be ready for external data analysis software. I sincely thank you for sparing your precious time solving this problem. Yours, Bite Gao Aug 26th, 2022 On 2022/8/26 16:20, David Carlson wrote: When you change the exchange rate for a commodity that is not the base currency you are creating an unrealized gain or loss. GnuCash is not configured to handle these unrealized gains or losses without manual assistance. How you accomplish that depends on your reporting needs. On Thu, Aug 25, 2022 at 11:32 PM Gao Bite wrote: Gnucash Developers and Maintainers: Hello! When I'm processing transactions about foreign currency/ securities that are not the base currency, I have found a non-negligible issue: the accounting equation becomes unequal when I change the price in the built-in editor. Here are the details of the problem: I live in China and use CNY as the base currency, and I hold some of my assets in USD. Suppose that the exchange rate of USD/CNY is 6.5:1 on Sept 1st, and it has changed to 6.75:1 on Sept 30th. I hold $500 in USD and record it in GnuCash. However, with the new price entered into the built-in editor, the total amount of assets would be greater than the sum of liabilities and equity by ￥175 in CNY. Also, I cannot make a single-split transaction to record the price fluctuation since there is no debit account to match that credit account. One supposed solution you gave me would be using the trading account. However, since trading account could not sum up the exchange profit & loss in a single time, it would be useless to me. I sincely thank you for sparing your precious time to this problem. Yours, Bite Gao Aug 26th, 2022 ___ gnucash-user mailing list gnucash-user@gnucash.org 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. -- David Carlson ___ gnucash-user mailing list gnucash-user@gnucash.org 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.
[GNC] Accounting Equation Mismatch for Foreign Currency/Security
Gnucash Developers and Maintainers: Hello! When I'm processing transactions about foreign currency/ securities that are not the base currency, I have found a non-negligible issue: the accounting equation becomes unequal when I change the price in the built-in editor. Here are the details of the problem: I live in China and use CNY as the base currency, and I hold some of my assets in USD. Suppose that the exchange rate of USD/CNY is 6.5:1 on Sept 1st, and it has changed to 6.75:1 on Sept 30th. I hold $500 in USD and record it in GnuCash. However, with the new price entered into the built-in editor, the total amount of assets would be greater than the sum of liabilities and equity by ￥175 in CNY. Also, I cannot make a single-split transaction to record the price fluctuation since there is no debit account to match that credit account. One supposed solution you gave me would be using the trading account. However, since trading account could not sum up the exchange profit & loss in a single time, it would be useless to me. I sincely thank you for sparing your precious time to this problem. Yours, Bite Gao Aug 26th, 2022 ___ gnucash-user mailing list gnucash-user@gnucash.org 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.
[GNC] Combining Method in Chapter 11 and Standalone Security
GnuCash developers & Maintainers: Hello! I have found several issues when I am reading your "Tutorial and Concepts Guide". When I reads methods in the 11th chapter,I have found that its example is based on non-fungible asset like painting. However, what I am expecting is that records capital gains for fungible securities (stock, bonds, ETF, etc.). How can I apply method in this chapter to these type of assets? Yours, Bite Gao June 19th, 2022 ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Direct Adjustment of Security's Price
Mr. D, Cousens: I am sorry that I did not state what I expected from the income recording well in the previous e-mail. I wish that you could read it carefully and give me advice accordingly. I purchase securities for speculation, which I anticipate their market price and the ability to resell these securities for that price. Every two weeks, I need to update the market price of my holding securities. I need to increase (decrease) the securities' asset value. What's more, I need to record changes in market value as an income. I need to be able to display the value of income over time so that I can have a better decision on investing. However, I have some issues in recording my investing process in your software. First of all, the built-in trading account generates gains and losses only on the current exchange rate, so it is hard to display the performance of the investment over time. While adjusting securities' value affects the total asset's value standalone, recording the investment income needs a corresponding asset account. This fact gives me two choices: either detach the asset value from the accounting equation or detach the securities' book value from their market value (as the method in the tutorial displays). I sincerely hope that there is a method to fix these incorrectnesses. I would greatly appreciate it if you help me find these methods. Yours, Bite Gao June 20th, 2022 On 2022-06-20 6:41, davidcousen...@gmail.com wrote: Bite The transaction to record this, if a profit or increase in value of the security is to debit the security by the amount of the profit and to credit an income account by the same amount. For a loss in value creidt the security account and debit the income amount. The profit or loss is the product of the number of securites held and the difference in prices between the date at which you are recording the unrealized gain/loss and the price at the time you have previously recorded a gain or loss Ultimately this traces back to the initail purchase price. You may find it useful to use a sub-account of the security (of the same type account) totalling into the security account to record the unrealized gains and losses so that you preserve the initial cost basis which you will likely need for capital gains taxes in most jurisdiction. Unrealized gains and losses are generally not taxable as income in most jurisdictions, so you would need an Income account separate from any Income account structure which records income for taxation purposes. David Cousens On Sun, 2022-06-19 at 21:56 +0800, Gao Bite wrote: GnuCash developers & Maintainers: Hello! I would like to record the unrealized profit & loss from security investment directly into an income account. Could you please tell me whether I am possible to do as above, and if possible, how I can achieve this? Yours, Bite Gao June 19th, 2022 ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - 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 gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - 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 gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
[GNC] Direct Adjustment of Security's Price
GnuCash developers & Maintainers: Hello! I would like to record the unrealized profit & loss from security investment directly into an income account. Could you please tell me whether I am possible to do as above, and if possible, how I can achieve this? Yours, Bite Gao June 19th, 2022 ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Foreign Currency Receivable
GnuCash Developers and Maintainers: I believe that I have no more problems with Steam revenue's accounting. Thanks a lot for your help. Regards, Bite Gao May 26th, 2022 On 2022-05-26 12:59, John Ralls Wrote: Gao, You have a couple of options. The simplest would be to just ignore that USD is involved at all and convert all of the USD amounts to CNY and post the CNY amounts to GnuCash. That obviously loses a bit of detail. Next up in complexity would be to create some USD accounts for income, expense, and accounts receivable (make that account type bank, not type accounts receivable, for this approach). You'll post those from the monthly statements. When you receive the actual payment you'll credit accounts payable in USD and debit your CNY bank account using whatever exchange rate your bank gives you on the conversion. Depending on how you handle the withheld taxes you also may need a USD or CNY asset account for pre-paid taxes. If you keep the payments in a USD-denominated account then you'd create a bank account in GnuCash to model it and debit it on payments. If you want to track unit sales you could make the income account in CNY and use the CNY->USD exchange rate reflected in your statement. For example if you price the game at CNY 150, you sold 10 of them in April, and your steam statement says that your revenue was USD 100 then you'd credit income CNY1500 and debit Expenses:commision USD 30, Assets:Prepaid taxes or expenses:taxes (depending on how you have to handle the taxes), and Assets:AccountsPayable USD 60. Then when you get the payment and your bank converts the USD 60 into CNY 800 you'd credit accounts payable USD 60, debit CNY 800 and debit Income:Trading Gains CNY 100. If you want you could go a step further and use the business module to convert the steam statement into an invoice. In that case you'd make the accounts payable account type accounts payable. IIRC the business model doesn't know how to handle the exchange rates and trading gains so you'd have to do that part manually, but it might provide some reports that you'd find useful enough to justify the extra work. On May 25, 2022, at 5:25 PM, Gao Bite wrote: Mr. or Mrs. Novack: Hello! I am probably not making myself clear in the last e-mail, so I wish that you could allow me to clarify myself in this e-mail. I put my game on the Steam platform and priced it in CNY. Let us assume that purchases happen in March. When players in China buy the game, they pay in CNY (without having notice of foreign exchange done by Steam's partner), and Steam possibly receives their payments in USD. At the end of March, I received an invoice telling me about data for the game's sales in March, a 30 percent deduction from the Steam platform, and a 10 percent of income tax. At the end of April, I received my part in USD. I wonder if I clarified myself in this e-mail. If you still have some points not sure about, I wish that you could let me know it. On 2022-05-25 22:23, Michael or Penny Novack wrote: On 5/25/2022 12:01 AM, Gao Bite wrote: GnuCash Developers and Maintainers: Hello! I am a Chinese developer who sells games on the Steam platform. When I sell my game work on steam, I receive the sales report every month containing data for last month's game selling. And I will receive last month's money in USD at the end of this month. My base currency is CNY. How can I perform my accounting to record the gain and losses from game selling and foreign exchange separately? What data is on this statement beyond gross amount in USD? Is the site doing all transactions in USD (games sold for some price in USD as opposed to the currency of the buyer). If you are selling different games at various prices, unless you are told how many of each However it might be simpler for somebody like yourself who is the fabricator of an intangible << most sellers would be selling tangible goods with an associated "cost of goods" but possibly/probably you do not* >> ARE you selling goods at some price in USD, does your statement make clear how many units sold (at what price) , does it show the fees the agent is deducting, etc? Possibly there is no currency exchange involved YET. Maybe the only gains/losses form currency exchange would between the time you receive this statement and payment in USD and you get that converted into CNY in your bank account. In other words, if you receive a statement from the agent "sales in March were $XXX (as of 3/31) but you do not receive into your bank account YYY in CNY until April 25th you might want to consider the value of ($xxx - fees) in CNY as of march 31 the base and any difference between that and the CNY going into your bank on April 25th a gain or loss from currency exchange. Michael D Novack * But if you had programmers working for you, you possibly/probably would be associating a "cost of goods" separating you
Re: [GNC] Foreign Currency Receivable
Mr. or Mrs. Novack: Hello! I am probably not making myself clear in the last e-mail, so I wish that you could allow me to clarify myself in this e-mail. I put my game on the Steam platform and priced it in CNY. Let us assume that purchases happen in March. When players in China buy the game, they pay in CNY (without having notice of foreign exchange done by Steam's partner), and Steam possibly receives their payments in USD. At the end of March, I received an invoice telling me about data for the game's sales in March, a 30 percent deduction from the Steam platform, and a 10 percent of income tax. At the end of April, I received my part in USD. I wonder if I clarified myself in this e-mail. If you still have some points not sure about, I wish that you could let me know it. Yours, Bite Gao May 26th, 2021 On 2022-05-25 22:23, Michael or Penny Novack wrote: On 5/25/2022 12:01 AM, Gao Bite wrote: GnuCash Developers and Maintainers: Hello! I am a Chinese developer who sells games on the Steam platform. When I sell my game work on steam, I receive the sales report every month containing data for last month's game selling. And I will receive last month's money in USD at the end of this month. My base currency is CNY. How can I perform my accounting to record the gain and losses from game selling and foreign exchange separately? What data is on this statement beyond gross amount in USD? Is the site doing all transactions in USD (games sold for some price in USD as opposed to the currency of the buyer). If you are selling different games at various prices, unless you are told how many of each However it might be simpler for somebody like yourself who is the fabricator of an intangible << most sellers would be selling tangible goods with an associated "cost of goods" but possibly/probably you do not* >> ARE you selling goods at some price in USD, does your statement make clear how many units sold (at what price) , does it show the fees the agent is deducting, etc? Possibly there is no currency exchange involved YET. Maybe the only gains/losses form currency exchange would between the time you receive this statement and payment in USD and you get that converted into CNY in your bank account. In other words, if you receive a statement from the agent "sales in March were $XXX (as of 3/31) but you do not receive into your bank account YYY in CNY until April 25th you might want to consider the value of ($xxx - fees) in CNY as of march 31 the base and any difference between that and the CNY going into your bank on April 25th a gain or loss from currency exchange. Michael D Novack * But if you had programmers working for you, you possibly/probably would be associating a "cost of goods" separating your business operation between "production" and "marketing" because you might want to see how each is doing separately. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
[GNC] Foreign Currency Receivable
GnuCash Developers and Maintainers: Hello! I am a Chinese developer who sells games on the Steam platform. When I sell my game work on steam, I receive the sales report every month containing data for last month's game selling. And I will receive last month's money in USD at the end of this month. My base currency is CNY. How can I perform my accounting to record the gain and losses from game selling and foreign exchange separately? Yours, Bite Gao May 25th, 2022 ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Potential Computational Errors
GnuCash Developers & Maintainers: Hello! When I tried the problem, I found that the problem has been solved. Despite this, I still thank you for your kindness. Yours, Bite Gao Feb 17th, 2022 On 2022/2/18 21:16, Derek Atkins Wrote: HI, Thank you for sending this, however I still cannot understand what the proposed computation error is. First, I don't read the language(s) in the image. Second, you're not showing a picture of a GnuCash register, and due to the language issue I cannot tell *WHAT* it is a picture of. Based on that, I have no way to divine what the computation is supposed to be, in order to even verify that the computation is wrong. I *WILL* say that it looks like you are using two currencies. It looks like you have three entries in ¥ but then the last entry appears to be in a different currency (Yuan? I'm not sure what that character means). Assuming I am correct, then the "computation" is going to be based on the exchange rate you entered. But I cannot tell if this is a single transaction or what. Can you show this in the GnuCash Register UI (with colored lines)? Thanks, -derek On Thu, February 17, 2022 6:58 pm, Gao Bite wrote: GnuCash Developers & Maintainers: Hello! This is the attachment which I originally planned to send. Yours, Bite Gao Feb 17th, 2022 On Thu, February 17, 2022 9:08 am, Derek Atkins wrote: HI, On Thu, February 17, 2022 9:08 am, Gao Bite wrote: GnuCash Developers & Maintainers: Hello! I have recently found a mismatch computation result from your software. It may be a computational mistake, or a special accounting standard. I would like to know whether it is. Yours, Bite Gao Feb 17th, 2021 Attachment: Image which describes potential error: This list scraps all HTML and embedded images. You need to attach them to get them through the list. As a result, we cannot see what potential computation error you seem to be seeing. Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All. -derek ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - 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 gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Potential Computational Errors
GnuCash Developers & Maintainers: Hello! This is the attachment which I originally planned to send. Yours, Bite Gao Feb 17th, 2022 On Thu, February 17, 2022 9:08 am, Derek Atkins wrote: HI, On Thu, February 17, 2022 9:08 am, Gao Bite wrote: GnuCash Developers & Maintainers: Hello! I have recently found a mismatch computation result from your software. It may be a computational mistake, or a special accounting standard. I would like to know whether it is. Yours, Bite Gao Feb 17th, 2021 Attachment: Image which describes potential error: This list scraps all HTML and embedded images. You need to attach them to get them through the list. As a result, we cannot see what potential computation error you seem to be seeing. Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All. -derek ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
[GNC] Potential Computational Errors
GnuCash Developers & Maintainers: Hello! I have recently found a mismatch computation result from your software. It may be a computational mistake, or a special accounting standard. I would like to know whether it is. Yours, Bite Gao Feb 17th, 2021 Attachment: Image which describes potential error: ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
