On 29 June 2024 at 22:05, G R Hewitt said: > Hello Everyone, > > Basics: > GnuCash 5.6; MacOS High Sierra 10.13.6 > Using Sterling as the base currency and Euros. > > The problem: > A few days ago I bought something in euros (€150) and paid for it in > sterling (£132.27) and the GnuCash system worked out that the rate was > 0.8818. In the P&L the item was properly shown as £132.27. The card > account payment showed £132.27 and the euro expense account showed > €150.00. All well and good. > > I bought something else a few days later in the same manner as above, but > the exchange rate had changed, all well and good too - card account and > expense account transactions were correct. > > On running the P&L I noted that the £132.27 of the first transaction > above was now less at around £128 and some pence instead of the expected > £132.27. I checked the card account and it was still at £132.27 and the > euro account was still at €150. > > Why is this and is there a way to have the correct figures shown in the > P&L without them jumping up and down as the rate changes.
Why? Because the P&L is a (re-)valuation at a specific date (e.g. "today") and there's been an unrealised loss on your asset - the €150 is now worth only £128+ whereas you paid £132.27 for it, and you haven't accounted for this. (Of course, if the Euro subsequently rises enough against sterling this might even be reversed and become a gain.) Consider what happens if what you bought was actual euros (such as in preparation for a trip to France). They cost you £132+. If you bought them today instead, they'd cost you £128+. You made a £4(+-) loss by buying too soon. That's what the P&L is telling you. The figures ARE correct, at least insofar as you have informed Gnucash. _______________________________________________ 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.
