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  Author:
  		Jon Lapham <lapham@extracta.com.br>
  	Updated	Bengt Thuree <bengt@thuree.com>
  	Updated	Geert Janssens <janssens-geert@telenet.be>
	Revised David T. <sunfish62@yahoo.com>
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<chapter id="chapter_currency">
  <title>Мультивалютные операции</title>

  <para>This chapter will show how to set up <application>&app;</application> accounts to use
  multiple currencies.</para>

  <sect1 id="currency_concepts1">
    <title>Basic Concepts</title>

    <para><application>&app;</application> supports over a hundred currencies, from the Andorran Franc
    to the Zimbabwe Dollar. For example, you can have a bank account set up in Euros, and
    another using Hong Kong Dollars.</para>

    <para>Some of the issues which arise when using multiple currencies are, how
    do you transfer funds between accounts with different currencies? How do
    you calculate the overall value when you have mixed currency accounts? How
    do reports deal with mixed currencies?</para>

    <note>
      <para>An alternative way to manage multiple currency accounts from the one
      presented in the next sections, is to use the <guilabel>trading</guilabel> accounts
      capabilities of <application>&app;</application>. This feature, which was
      introduced with <application>&app;</application> version 2.3.14, can be enabled by
      going to the <guilabel>Accounts</guilabel> tab under <menuchoice><guimenu>File</guimenu><guimenuitem>
      Properties</guimenuitem></menuchoice>.</para>
      <para>For a complete guide on <guilabel>trading</guilabel> accounts, see
      <ulink type="http" url="http://www.mathstat.dal.ca/~selinger/accounting/tutorial.html">
      this tutorial by Peter Selinger</ulink>.</para>
    </note>
  </sect1>

  <sect1 id="currency_acct1">
    <title>Account Setup</title>

    <para>Your default account currency is set in the <guilabel>Account</guilabel> tab
    under <menuchoice><guimenu>Edit</guimenu><guimenuitem>Preferences</guimenuitem></menuchoice>
    (<menuchoice><guimenu>&app;</guimenu><guimenuitem>Preferences</guimenuitem></menuchoice> on Mac OS X).</para>

    <para>Similarly, <application>&app;</application> offers an option to
    set your preferred currency for displaying reports (like the balance
    sheet and income statement). The option is called <guilabel>Default
    Report Currency</guilabel>, and is in the <guilabel>Reports</guilabel>
    tab of the <guilabel>&app; Preferences</guilabel> screen.
    You&rsquo;ll want to set both options when you start using
    <application>&app;</application> because if (for example) your accounts
    are all in Canadian Dollars but the generated reports are all in US
    Dollars, the reports will just say that there are <quote>no
    data/transactions (or only zeroes) for the selected time
    period</quote>.</para>

    <para>When you create a new account, you have the option to define the
    commodity in which that account is denominated. For accounts denominated 
    in a currency, you can specify any of the currencies supported by <application>&app;</application> 
    by simply selecting it from the currency commodity list. You will notice 
    that the default currency is the currency that is defined for the parent 
    account of the new account.</para>

    <para>As an example, let&rsquo;s set up a bank account scenario where
    you mostly work in US Dollars, but do also have a European bank account
    using the Euro currency, as well as one bank account in Hong Kong using
    Hong Kong Dollars. So, set up 3 bank accounts, one denominated in US Dollars, 
    one using Euros, and the third in Hong Kong Dollars. One possible account
    structure for this would be:</para>

    <literallayout>
-Assets (USD)
   -Current Assets (USD)
      -US Bank (USD)
      -European Bank (EUR)
      -HK Bank (HKD)
-Equity (USD)
   -Opening Balances (USD)
      -USD (USD)
      -EUR (EUR)
      -HKD (HKD)

Note: the currency of each account is shown in parenthesis.
 </literallayout>

    <para>Since in this example you mostly work in USD, all of the parent
    accounts are set to USD. Of course, if you mostly work in Euros, you could
    change the currency of these parent accounts to EUR. The totals shown in
    the account tree window will always be converted to the currency of each
    particular account. Notice, we also set up 3 Starting Balances equity
    accounts, used to initially populate the 3 banks.</para>

    <note>
      <para>You could also set up just a single Starting Balance account and
      use a currency transfer to populate the <quote>different currency</quote> accounts.
      However, this is more advanced option, which is explained in a later
      section (<xref linkend="currency_purchase2" />).</para>
    </note>

    <para>Below you see the result of this example, in which you start with
    USD 10,000, EUR 10,000 as well as HKD 10,000 in the three bank accounts.
    Notice that the total of the parent accounts only shows the value of the
    currency of sub-accounts with matching currencies. In other words, the 
    Total Assets and Total Equity values only reflect USD amounts, because <application>&app;</application>
    has no way of evaluating the value of EUR or HKD yet. Once you set up 
    exchange rates between the currencies, the parent accounts
    will calculate the converted value of all sub-accounts. See the later
    section (<xref linkend="currency_howto1" />) on ways to do this.</para>

    <screenshot id="currency_main1">
      <mediaobject>
        <imageobject>
          <imagedata fileref="figures/currency_main1.png" format="PNG"
                     srccredit="Geert Janssens" />
        </imageobject>

        <textobject>
          <phrase>Initial multi currency Account Bank Setup</phrase>
        </textobject>

        <caption><para>Initial setup of 3 bank accounts with different
        currencies. </para></caption>
      </mediaobject>
    </screenshot>

    <para>Notice that the "Total (Report)" column is being displayed. This is
    configured in the column header row, select <guibutton>Arrow
    down</guibutton> and select <quote>Total(USD)</quote>.</para>

    <sect2 id="currency_acct_user2">
      <title>User-Defined Currencies</title>

      <para>Usually when we talk about currencies, we mean
      government-backed currencies (or more precisely, currencies defined
      in <ulink
      url="http://en.wikipedia.org/wiki/ISO_4217">ISO 4217</ulink>).
      <application>&app;</application> does not allow you to create your
      own currencies. If you want to track non-<acronym>ISO</acronym>
      currencies, you can use either of two workarounds, depending on which
      fits your needs better.</para>
      
      <para>The first method is is to treat these as if they were a security&mdash;that
      is, like a stock or mutual fund. The second method is to use one of the <quote>dummy</quote>
      currencies for them.</para>

      <para>Let&rsquo;s say for example that you want to track loyalty points 
      you&rsquo;ve earned by buying from a certain group of businesses. The 
      account which tracks your loyalty points will be 
      <emphasis>Assets:Other:LoyaltyGroupRewardMiles</emphasis>.</para>

      <para>In the first method, you define a new security, of type <guilabel>FUND</guilabel>,
      called RewardMiles. This is pretty straightforward&mdash;when you
      create the new <emphasis>LoyaltyGroupRewardMiles</emphasis> account, just set the account
      type to <guilabel>Stock</guilabel> or <guilabel>Mutual
      Fund</guilabel>, click the <guibutton>Select...</guibutton> button
      next to the <guilabel>Security/currency:</guilabel> box, and click
      <guibutton>New</guibutton> to define a new security of type
      <guilabel>FUND</guilabel>.</para>

      <para>This is not really what the stock and mutual fund account types
      are meant for, but <application>&app;</application> will allow it. The downside is
      that you&rsquo;ll have to enter a <quote>price</quote> for every
      transaction involving this account, because
      <application>&app;</application> needs the prices to figure out the
      monetary value of the points and treat them as one of your
      assets.</para>

      <para>In the second method, you use one of the dummy
      currencies to track the loyalty points. These currencies are
      <quote>XTS (Code for testing purposes)</quote> and <quote>XXX (No
      currency)</quote>. If you use one of these for your
      LoyaltyGroupRewardMiles account, you can enter transactions into the
      account without having to enter share prices for every transaction.
      And, you can keep using the same two dummy currencies to track all
      sorts of amounts&mdash;vacation dollars earned and used so far this
      year, vacation hours earned and used, health insurance benefits
      allowance used and remaining, and so on.</para>

      <para>The drawback with this second method is that you cannot define exchange rates for
      the dummy currencies to convert them to <acronym>ISO</acronym>
      currencies. If you want to do that, you really should use the first
      method.</para>
    </sect2>
  </sect1>

  <sect1 id="currency_howto1">
    <title>Recording and Updating Currency Exchange Rates</title>

    <para><application>&app;</application> allows you to update the Currency Exchange Rates 
    both manually and automatically. This process is essentially the
    same as setting share prices for investments (see <xref linkend="invest-stockprice1"/>). 
    In the following two sections we will work through both methods.</para>

    <para>Before we start, let&rsquo;s have a quick look at the Chart of
    Accounts</para>

    <screenshot id="currency_main1a">
      <mediaobject>
        <imageobject>
          <imagedata fileref="figures/currency_main1.png" format="PNG"
                     srccredit="Geert Janssens" />
        </imageobject>

        <textobject>
          <phrase>Initial multi currency Account Bank Setup</phrase>
        </textobject>

        <caption><para>Initial set up of 3 bank accounts with different
        currencies. </para></caption>
      </mediaobject>
    </screenshot>
    <para>As you see, the overall balances do not yet reflect any value for EUR 
    or HKD holdings. Adding currency exchange rates will fix this.</para> 

    <sect2 id="currency_howto_Manual">
      <title>Manually Updating Exchange Rates</title>

      <para>Open the <guilabel>Price Editor</guilabel> by going to <menuchoice><guimenu>Tools</guimenu>
      <guimenuitem>Price Editor</guimenuitem></menuchoice>.</para>

      <screenshot id="currency_peditor">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_peditor.png"
                       format="PNG" srccredit="Geert Janssens" />
          </imageobject>

          <textobject>
            <phrase>Price Editor window</phrase>
          </textobject>

          <caption><para>Price Editor Window. </para></caption>
        </mediaobject>
      </screenshot>

      <para>Click on the <guibutton>Add</guibutton> button to add a new
      currency exchange rate. A window will appear in which you can set up a new
      exchange rate. This window should appear like this:</para>

      <screenshot id="currency_addcurr">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_addcurr.png" format="PNG"
                       srccredit="Geert Janssens" />
          </imageobject>

          <textobject>
            <phrase>Set up Euro Exchange Rate</phrase>
          </textobject>

          <caption><para>Add Price Editor Window</para></caption>
        </mediaobject>
      </screenshot>

      <para> Set the <guilabel>Namespace</guilabel> to
      Currency and the <guilabel>Security</guilabel> to EUR (Euro).
      Then set the exchange rate between the selected security and the
      selected currency. The price box defines how many units of currency are
      required to purchase one unit of the security. In this case, how many dollars
      it will take to purchase on Euro. In this example, you will set the exchange rate to 1
      EUR for 1 USD.</para>

      <screenshot id="currency_manualpriceadded">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_BeforeGetOnlineQuotes.png" format="PNG"
                       srccredit="Geert Janssens" />
          </imageobject>

          <textobject>
            <phrase>Price Editor Window</phrase>
          </textobject>

          <caption><para>The Price Editor window after setting the exchange
          rate between Euros and US Dollars</para></caption>
        </mediaobject>
      </screenshot>

      <screenshot id="currency_main2">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_main2.png" format="PNG"
                       srccredit="Geert Janssens" />
          </imageobject>

          <textobject>
            <phrase>Chart of Accounts</phrase>
          </textobject>

          <caption><para>Chart of Accounts after setting the exchange rate
          between Euros and US Dollars.</para></caption>
        </mediaobject>
      </screenshot>

      <para>Observe that since you have no exchange rate for HKD, <application>&app;</application>
      doesn&rsquo;t convert the HKD accounts to USD. This will be added in the next
      section.</para>
    </sect2>

    <sect2 id="currency_howto_Auto">
      <title>Automatic Updating Exchange Rates (How-To)</title>

      <para>In the previous section you saw how to manually define a
      new currency exchange rate, but <application>&app;</application> includes an
      automatic price update feature, which will now be described.</para>

      <para>Open the <guilabel>Price Editor</guilabel> by going to <menuchoice><guimenu>Tools</guimenu>
      <guimenuitem>Price Editor</guimenuitem></menuchoice>.</para>

      <screenshot id="currency_BeforeGetOnline">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_BeforeGetOnlineQuotes.png" format="PNG"
                       srccredit="Geert Janssens" />
          </imageobject>

          <textobject>
            <phrase>Price Editor window</phrase>
          </textobject>

          <caption><para>Price Editor Window before you obtain online quotes.
          </para></caption>
        </mediaobject>
      </screenshot>

      <para>Click on the <guibutton>Get Quotes</guibutton> button to
      automatically load the various exchange rates you need.</para>

      <note><para>
         If the <guibutton>Get Quotes</guibutton> button is disabled,
         that means that the <application>Perl</application> module <application>Finance::Quote</application> is not installed.
         For information on how to install it, please see
         <xref linkend="invest-stockprice-auto2" ></xref>
      </para></note>

      <para><screenshot id="currency_AfterGetOnlineQuotes">
          <mediaobject>
            <imageobject>
              <imagedata fileref="figures/currency_AfterGetOnlineQuotes.png"
                         format="PNG" srccredit="Geert Janssens" />
            </imageobject>

            <textobject>
              <phrase>Price Editor window</phrase>
            </textobject>

            <caption><para>Price Editor Window after we obtained online
            quotes. </para></caption>
          </mediaobject>
        </screenshot></para>

      <para><application>&app;</application> downloads exchange rates for all
      currencies that are in use in your various accounts. This will happen
      every time you click on <guibutton>Get Quotes</guibutton> or request <application>&app;</application>
      to download quotes as per <xref linkend="invest-stockprice-auto2" /></para>

      <para>Now when you check the main Chart of Accounts you will see that
      <application>&app;</application> has automatically converted the HKD amount to USD amount on the
      parent accounts that are in USD, as well as on the Total (USD) column.
      Also the Euro accounts have been been updated with the latest exchange
      rate.</para>

      <screenshot id="currency_main3.png">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_main3.png" format="PNG"
                       srccredit="Geert Janssens" />
          </imageobject>

          <textobject>
            <phrase>Price Editor window</phrase>
          </textobject>

          <caption><para> Chart of Accounts after we obtain online quotes.
          </para></caption>
        </mediaobject>
      </screenshot>
    </sect2>
    <sect2 id="currency_howto_disable">
      <title>Disabling Exchange Rate Retrieval</title>
      <para>Whenever you create an account that uses a non-default currency,
      exchange rate retrieval will be automatically enabled for that currency.
      However, if you later delete that account, <application>&app;</application> will not automatically
      disable exchange rate retrieval for that currency.</para>
      <para>If you have deleted the last account for a particular currency, and
      you do not wish to retrieve exchange rates for that currency anymore, do
      the following:</para>
      <itemizedlist>
        <listitem>
          <para>Open the Securities window by selecting
          <menuchoice><guimenu>Tools</guimenu><guimenuitem>Security
          Editor</guimenuitem></menuchoice>.</para>
        </listitem>
        <listitem>
          <para>Make sure the <guilabel>Show National Currencies</guilabel> box
          is selected.</para>
        </listitem>
        <listitem>
          <para>Expand the CURRENCY row.</para>
        </listitem>
        <listitem>
          <para>Double click on the currency for which you want to disable
          exchange rate retrieval.</para>
        </listitem>
        <listitem>
          <para>Deselect the <guilabel>Get Online Quotes</guilabel> box and
          click <guibutton>OK</guibutton>.</para>
        </listitem>
      </itemizedlist>
    </sect2>
  </sect1>

  <sect1 id="currency_purchase1">
    <title>Recording Purchases in a Foreign Currency</title>

    <para>Purchases in a foreign currency can be managed in two different ways.</para>

    <para>1) Use <application>&app;</application>'s built-in currency exchange functions when you
    do your transactions. This is mainly used for one-time transactions, and
    nothing which happens regularly.</para>

    <para>2) Use separate accounts to track transactions, where all involved
    accounts use the same currency. This is the recommended method, since it
    allows much better tracking and follow up. In this way, you do one
    currency exchange transaction, and after that you do normal
    transactions in the native currency.</para>

    <para>The rest of this section will explain more based upon option 2).</para>

    <sect2 id="currency_purchase2">
      <title>Purchase of an Asset with Foreign Currency</title>

      <para>You are using USD as your default currency. But, you decide to purchase a
      boat in Jamaica. To do this, you opened a bank account in Jamaica, moved some
      money from the US, and then purchased your boat.</para>

      <para>To record this in <application>&app;</application> we use the following basic account
      structure:</para>

      <literallayout>
-Assets (USD)
   -Current Assets (USD)
      -US Bank (USD)
      -Jamaican Bank (JMD)
   -Fixed Assets (USD)
      -Boat (JMD)
-Equity (USD)
   -Opening Balances (USD)
      -USD (USD)

Note: the currency of each account is shown in parenthesis.
 </literallayout>

      <para>First you need to transfer some money ($10,000) to Jamaica, and
      you use your US bank account (with a balance of $100,000) for
      that. The bank gives you an exchange rate of USD 1 = JMD 64, but charges
      you USD 150 to transfer the money.</para>

      <screenshot id="currency_purchase_MoveMoney.png">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_purchase_MoveMoney.png"
                       format="PNG" srccredit="Bengt Thuree" />
          </imageobject>

          <textobject>
            <phrase>Currency transfer</phrase>
          </textobject>

          <caption><para>Transfer money to Jamaica</para></caption>
        </mediaobject>
      </screenshot>

      <para>Select the Jamaica transaction line ($9,850.00), right click and
      select <guilabel>Edit Exchange Rate</guilabel></para>

      <screenshot id="currency_purchase_SetExchangeRate.png">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_purchase_SetExchangeRate.png"
                       format="PNG" srccredit="Bengt Thuree" />
          </imageobject>

          <textobject>
            <phrase>Edit Exchange rate</phrase>
          </textobject>

          <caption><para>A dialog window where the exchange rate in a currency
          transaction is specified</para></caption>
        </mediaobject>
      </screenshot>

      <para>As Exchange Rate, you enter 1 USD = 64 JMD, since this is the rate
      your bank gave. Press ok in the Transfer Funds (Edit Exchange Rate)
      window, and then save this split transaction. Below is how it now looks
      in the main Chart of Accounts.</para>

      <screenshot id="currency_purchase_BeforeBoat.png">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_purchase_BeforeBoat.png"
                       format="PNG" srccredit="Bengt Thuree" />
          </imageobject>

          <textobject>
            <phrase>Chart of Accounts before purchasing the boat</phrase>
          </textobject>

          <caption><para>Chart of Accounts before purchasing the
          boat</para></caption>
        </mediaobject>
      </screenshot>

      <para>You choose to buy a boat for JMD 509,000. To record this transaction 
      in <application>&app;</application>, you will need to enter a simple 
      transaction in <emphasis>Assets:Current Assets:Jamaican Bank</emphasis>
      withdrawing JMD 509,000 and transferring it to <emphasis>Assets:Fixed Assets:Boat</emphasis></para>

      <screenshot id="currency_purchase_AfterBoat.png">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_purchase_AfterBoat.png"
                       format="PNG" srccredit="Bengt Thuree" />
          </imageobject>

          <textobject>
            <phrase>Chart of Accounts after purchasing the boat</phrase>
          </textobject>

          <caption><para>Chart of Accounts after purchasing the
          boat</para></caption>
        </mediaobject>
      </screenshot>
      <para>The Chart of Accounts now reflects that your bank account has been
      reduced by JMD 509,000, and that your Fixed Assets boat account has been 
      increased by the same amount. If you also have turned
      on the CoA (Column Choice) "Total (USD)" you will see the corresponding
      value in USD. The USD value will always reflect the latest currency exchange
      rate you have either automatically or manually retrieved.</para>
    </sect2>

    <sect2 id="currency_purchase3">
      <title>Purchasing Foreign Stocks</title>

      <para>This example will show how to purchase stocks that are priced in a
      currency other than your primary currency.</para>

      <para>Assume that you live in New York and therefore you have set the
      default currency to USD. You decide to purchase a stock traded in Hong
      Kong that is priced in HKD. You would also like to be able to track the
      various income and expense amounts per stock and broker.</para>

      <para>You decide to purchase stock in the Beijing Airport (Hong Kong). 
      The ticker for this stock is 0694.HK on Yahoo! Since you wanted to 
      track all various income and expense amounts, here is the necessary
      account structure:</para>

      <literallayout>
Assets:Investments:Brokerage Accounts:Boom:0694.HK (0694.HK)
Assets:Investments:Brokerage Accounts:Boom:Bank (HKD)
Equity:Opening Balances:HKD (HKD)
Expenses:Commissions:Boom.0694.HK (HKD)
Income:Investments:Dividend:Boom:0694.HK (HKD)
      </literallayout>

      <para>The Chart of Accounts looks like this after creating all the
      needed accounts:</para>

      <screenshot id="currency_purchase_BeforeStocks.png">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_purchase_BeforeStocks.png"
                       format="PNG" srccredit="Bengt Thuree" />
          </imageobject>

          <textobject>
            <phrase>Chart of Accounts for international stocks</phrase>
          </textobject>

          <caption><para>Chart of Accounts for international
          stocks</para></caption>
        </mediaobject>
      </screenshot>

      <para>The stock definition can be seen in the Security Editor.
      (<menuchoice><guimenu>Tools</guimenu><guimenu>Security Editor</guimenu></menuchoice>)
      </para>

      <screenshot id="currency_purchase_Commodities.png">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_purchase_Commodities.png"
                       format="PNG" srccredit="Bengt Thuree" />
          </imageobject>

          <textobject>
            <phrase>International securities</phrase>
          </textobject>

          <caption><para>International securities</para></caption>
        </mediaobject>
      </screenshot>

      <para>If you have not moved money (HKD 50,000) into the brokerage
      cash account (<emphasis>Assets:Investments:Brokerage Account:Boom:Bank</emphasis>), do so
      now, either using the Equity (HKD) account, or an existing bank account
      (Currency Transfer).</para>

      <para>There are two ways to enter the actual purchase transaction: you can
      enter it from the cash account (shown below), or you can enter it 
      from the stock account. <emphasis>If entered from the stock account, the stock is 
      assumed to be priced in the currency of the parent account</emphasis>.</para> 

      <para>Let&rsquo;s assume that the stock price is HKD 3 per share. To record the
      purchase, open the brokerage&rsquo;s HKD cash account
      (<emphasis>Assets:Investments:Brokerage Account:Boom:Bank</emphasis>), and enter
      the following:</para>
<bridgehead renderas='sect4'>Buy Stocks</bridgehead>
<informaltable frame='none' colsep='0' rowsep='0'>
      <tgroup cols='3'>
	<colspec colwidth='3*' align='left'/>
	<colspec colwidth='1*' align='left'/>
	<colspec colwidth='1*' align='right'/>
	<tbody>
	<row><entry>Assets:Investments:Brokerage Account:Boom:Bank</entry><entry>Withdrawal</entry><entry>50,000</entry></row>
	<row><entry>Expenses:Investments:Commission:Boom_HKD</entry><entry>Deposit</entry><entry>500</entry></row>
	<row><entry>Assets:Investments:Brokerage
	Account:Boom:0694</entry><entry>Deposit</entry><entry>49,500
	(16,500 shares)</entry></row>
	</tbody>
      </tgroup>
</informaltable>

      <para>If the exchange rate dialog box does not appear automatically,
      right-click on the stock row, and select <guilabel>Edit
      Exchange Rate</guilabel>. Enter the number of shares (16,500) as the
      <guilabel>To Amount</guilabel>.
      </para>

      <screenshot id="currency_purchase_ToAmount.png">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_purchase_ToAmount.png"
                       format="PNG" srccredit="Bengt Thuree" />
          </imageobject>

          <textobject>
            <phrase>Transfer Funds</phrase>
          </textobject>

          <caption><para>Setting the number of shares in the Transfer Funds dialog</para></caption>
        </mediaobject>
      </screenshot>

      <para>When you return to the Chart of Accounts, you will see the
      purchased shares reflected in the stock account&rsquo;s total.</para>

      <screenshot id="currency_purchase_AfterStocks.png">
        <mediaobject>
          <imageobject>
            <imagedata fileref="figures/currency_purchase_AfterStocks.png"
                       format="PNG" srccredit="Bengt Thuree" />
          </imageobject>

          <textobject>
            <phrase>Purchased international stocks</phrase>
          </textobject>
          <caption><para>
            Chart of Accounts with some international stocks
          </para></caption>
        </mediaobject>
      </screenshot>

      <para>However, as you can see, the USD totals may be zero if
      <application>&app;</application> doesn&rsquo;t have an exchange rate between USD and HKD.
      To fix this, go to <menuchoice><guimenu>Tools</guimenu><guimenuitem>Price
      Editor</guimenuitem></menuchoice>
      and click the <guibutton>Get Quotes</guibutton> button to
      automatically retrieve the exchange rates you need.</para>

      <note>
        <para>To reiterate, this example shows how stock can be purchased in any currency
         by entering the transaction in the register of the cash account used
         to make payment. It is also possible to enter the purchase
         in the stock account&rsquo;s register, but be aware that the stock is 
         assumed to be priced in the currency of the stock account&rsquo;s parent.</para>
        <para>In this example, the stock account&rsquo;s parent
         (<emphasis>Assets:Investments:Brokerage Account:Boom</emphasis>) is denominated in HKD.
         Since this is same currency as the stock price, the purchase
         can be safely entered in the stock account&rsquo;s register.</para>
      </note>

    </sect2>

  </sect1>

  <sect1 id="currency_invest1">
    <title>Tracking Currency Investments</title>

    <para>Currency investment is when you decide to invest in a different
    country's currency, and hope that it will rise in value
    relative your own currency.</para>

    <para>When you enter these transactions into <application>&app;</application>, you will have to
    decide on how much detail you would like to have.</para>

    <para>If you are not interested in detail at all, a very simple account
    structure would suffice:</para>

    <literallayout>
    Assets:Investments:Currency:Bank (USD)
    Assets:Investments:Currency:XXX (XXX)
    </literallayout>

    <para>You would simply enter transfers between the two accounts, noting 
    exchange rates as you went.</para>
    
    <para>But, if you do want to be able to track capital gains or losses,
    as well as any fees, you do need a more complex account structure, such as:</para>

    <literallayout>
    Assets:Investments:Currency:Bank (USD)
    Assets:Investments:Currency:Currency Bank:XXX (XXX)
    Expenses:Investments:Currency:Currency Bank:XXX (XXX)
    Income:Investments:Currency Bank:Capital Gains:XXX (XXX)
    </literallayout>

    <sect2 id="currency_invest12">
      <title>Purchasing Currency</title>

      <para>When purchasing another currency, you will buy a certain number of 
      units of foreign currency with your own currency, at a particular rate.
      For example, you might buy USD 10,000 worth of Andorran Francs, at 5 Francs
      to the dollar, with a transaction fee of $150.</para>
      
      <bridgehead renderas='sect4'>Buy Currency</bridgehead>
      <informaltable frame='none' colsep='0' rowsep='0'>
      <tgroup cols='3'>
	<colspec colwidth='5*' align='left'/>
	<colspec colwidth='2*' align='left'/>
	<colspec colwidth='1*' align='right'/>
	<tbody>
	  <row><entry>Assets:Investments:Currency:Bank</entry><entry>Withdrawal</entry><entry>10,000</entry></row>
	  <row><entry>Expenses:Investments:Currency:Currency Bank:ADF</entry><entry>Deposit</entry><entry>150</entry></row>
	  <row><entry>Assets:Investments:Currency:ADF</entry><entry>Deposit</entry><entry>49,250</entry></row>
	</tbody>
      </tgroup>
      </informaltable>

    <para>The Exchange Rate window should pop up when you
      leave the last row in the split above (Currency Transaction). If this
      window does not pop up, right click on the row or select 
      <guimenu>Actions</guimenu>, and select <guilabel>Edit
      Exchange Rate</guilabel>. In the Exchange Rate window you specify the
      exchange rate you got from the bank.</para>
    </sect2>

    <sect2 id="currency_invest13">
      <title>Selling a currency investment</title>

      <para>Entering a currency sale is done in the same way as
      a currency buy except that you are now transferring money from the Currency
      account to your Savings account (very similar to <xref
      linkend="invest-sell1" />).</para>

      <para>The proper recording of the currency sale *must* account for realized
      gains or losses. This can be done using a
      split transaction. In the split transaction, you must account for the
      profit (or loss) as coming from an <emphasis>Income:Capital Gains</emphasis> account (or
      <emphasis>Expenses:Capital Loss</emphasis>). To balance this income, you will need to enter
      the Currency asset twice in the split&mdash;once to record the actual sale
      (using the correct amount and correct exchange rate), and once to balance
      the income profit (setting the amount to 0).</para>

      <para>In short, a selling Currency transaction should look something
      like below, seen again from the <emphasis>Assets:Investments:Currency:Bank</emphasis>.</para>

      <table>
        <title>Selling a currency with a Split Transaction Scheme</title>

        <tgroup cols="3">
	  <colspec colwidth='3*' align='left'/>
	  <colspec colwidth='1*' align='center'/>
	  <colspec colwidth='1*' align='center'/>
	  <thead>
            <row><entry>Account</entry><entry>Deposit</entry><entry>Withdrawal</entry></row>
	  </thead>
          <tbody>
            <row>
              <entry>Assets:Investments:Currency:Bank</entry> <entry>Sold Amount - Exchange Fee</entry> <entry></entry> </row> 
            <row> <entry>Expenses:Investments:Currency:Currency Bank:XXX</entry> <entry>Exchange Fee</entry> <entry></entry> </row>
	    <row> <entry>Assets:Investments:Currency:XXX</entry> <entry></entry> <entry>Sold Amount</entry> </row>
	    <row> <entry>Income:Investments:Currency Bank:Capital Gains:XXX</entry> <entry>[LOSS]</entry> <entry>PROFIT</entry> </row> 
            <row> <entry>Assets:Investments:Currency:XXX</entry> <entry>PROFIT (with To Amount = 0)</entry> <entry>[LOSS (with To Amount = 0) ]</entry> </row>
          </tbody>
        </tgroup>
      </table>

    </sect2>
  </sect1>

  <sect1 id="currency_reconcile1">
    <title>Reconciling Statements in a Foreign Currency</title>

    <para>Reconciling foreign statement are done in the same manner as when
    you reconcile your local bank statement. If you have created a Chart of
    Accounts structure which allows you to have the same currency per account
    as your statement, it is actually exactly the same as
    reconciling your local bank statement.</para>

    <para>If you have different currencies you might have to manually convert
    the amounts from one currency to another while you reconcile the
    accounts.</para>
  </sect1>

</chapter>
