Booking a cash FX transaction correctly

[marathon]

How to book a single transaction to reflect that I had to transfer GBP 10,000 to USD at 1.54

So GBP cash account -- GBP 10,000
USD cash account ++ USD 15,400

from the same transaction so there is a audit trail


The only way found is to book 2 separate cash transactions as "new investment"

[Mark]

Hi marathon,

If one of these 2 cash investments is your default cash account, you can record the transaction in the other case investment, and specify a transaction specific exchange rate. This is a sell of your GBP cash for 10,000 shares at a price of 1 GBP, and a buy of USD cash for 15,400 shares at a price of 1 USD.

All cash transactions are done at a price of 1 in the currency for that cash investment.

If neither of those is the default cash for the other cash, then you would need to record both halves of the transaction separately.

[marathon]

Understand your issue here but how then should the accounts be set up that allows for multiple currency investments?

The way currently has been set up was following the suggestions on this forum to have default cash account for each currency sub account

So

Account: ABC
Sub a/c USD
Sub a/c GBP


so that the transactions in the currency impact the default account correctly for non-cash FX transactions

Splitting the FX transaction is the only way found but this is a bad accounting practice because lack of the audit trail.

Can some adjustment be done for the next release to fix this going forward?

[Mark]

Hi marathon,

Yes, in that structure you would have to record each half of the currency buy/sell. How would you like to see it work? Any suggestions on how to change this?