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Currencies values

something_new
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Currencies values

Thu Dec 07, 2017 11:06 pm
I found a strange behavior in Skrooge with operations done with accounts that have different currencies. Why doesn't Skrooge take the value of a currency at the date of a transaction?

Example

https://imgur.com/a/ggRaH

I received a payment in dollars on my US paypal account of $1455.4
I sent the same amount a month later but in euros, €-1.065.85 (~ $1455.4 * 0.73)

When I run a report on these transactions on Kmymoney, the sum is equal to zero. Since Skrooge takes the amount in $ from 2014 and converts it to € at today's rate ($1455.4*0.85 instead of * 0.73), the yellow payee (Paypal US) is ~$2469 instead of ~$2130

*edit correct link
User avatar smankowski
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Re: Currencies values

Fri Dec 08, 2017 11:23 am
something_new wrote:I found a strange behavior in Skrooge with operations done with accounts that have different currencies. Why doesn't Skrooge take the value of a currency at the date of a transaction?

Example

https://imgur.com/a/ggRaH

I received a payment in dollars on my US paypal account of $1455.4
I sent the same amount a month later but in euros, €-1.065.85 (~ $1455.4 * 0.73)

Your paypal account is in $.
You shouldn't create operation in €.
If you buy something in €. In fact, your operation is done in $ based on the rate of the date (0.73). So, you should enter the $.
Normally, when you enter an amount in € in an account in $, you should have a warning panel to decide if:
- you really want to enter the amount in €. This is the option you took.
- you prefer to enter the amount in $ based on the today rate. You should choose this option.
something_new wrote:When I run a report on these transactions on Kmymoney, the sum is equal to zero. Since Skrooge takes the amount in $ from 2014 and converts it to € at today's rate ($1455.4*0.85 instead of * 0.73), the yellow payee (Paypal US) is ~$2469 instead of ~$2130

*edit correct link

If you apply my advice, you should have the expected behavior.


Skrooge, a personal finances manager powered by KDE
http://skrooge.org
something_new
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Re: Currencies values

Fri Dec 08, 2017 11:07 pm
I might have not explained myself correctly. I understand what you say but, in my case, the euro payment was done on my current account, which is in Euros

(Approximate values)
For context, let's assume I got the $$$ for a friend that doesn't have a $ account, so I had to pay him back in €
  • 21/7/2014, US paypal, +$1,455, tracker "camera"
  • 21/7/2014, $ to € is 0.73, $1,455 = €1,065
  • 21/8/2014, Current € Acc, -€1,065, tracker "camera", payment to my friend from the money I got, which is his

On 21/8/2014, I've settled my debt with my friend. Tracker "camera" shows zero.

Now, if today, I go on and change the exchange rate to an absurd value 1$=50€, the tracker "camera" changes accordingly. I argue it shouldn't change because the price of $1.4K was approximately €1K back in 2014.

*edit, here's the proof
https://imgur.com/a/kZtWn
User avatar smankowski
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Re: Currencies values

Sat Dec 09, 2017 2:11 pm
Hi

If I well understood:
1- You created an operation $1455 in an account in "$" tracked by "camera"
2- You created an operation -€1065, in an account in "€" tracked by "camera"
==> The tracker is at 0 because because $1455=€1065.

Some days later the rate of the $ changes.
==> The tracker is no more at 0.

My point of view:
This is normal. In Skrooge all computation is done on the last value of operations.

My advice:
Trackers are made to help you get your money back. Once the refund is made, you must close the tracker, so even if its value changes, you won't see it.


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http://skrooge.org
something_new
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Re: Currencies values

Sun Dec 10, 2017 1:19 pm
smankowski wrote:Hi

If I well understood:
1- You created an operation $1455 in an account in "$" tracked by "camera"
2- You created an operation -€1065, in an account in "€" tracked by "camera"
==> The tracker is at 0 because because $1455=€1065.

Some days later the rate of the $ changes.
==> The tracker is no more at 0.


Correct

My point of view:
This is normal. In Skrooge all computation is done on the last value of operations.


I wouldn't say normal, but an implementation choice ;) If you ask how much $100 were in euros back in 2000, you get the rate then, not the value of those $100 now. Both are interesting to know, but it's two different questions.

Is ti something you could consider to implement in Skrooge, an option for the calculation to be based on the transaction date rate, instead of the latest one?

thanks
User avatar smankowski
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Re: Currencies values

Sun Dec 10, 2017 10:07 pm
something_new wrote:
smankowski wrote:Is ti something you could consider to implement in Skrooge, an option for the calculation to be based on the transaction date rate, instead of the latest one?

For many reasons, I think that this is not a good idea:
1- Example:
The 21 Mach 2011, you bought 1 bitcoin for 0.84$.
So, you have 2 operations:
op1: 2011/03/21 -0.84$
op2: 2011/03/21 +1 BTC (=+0.84$)

If operations amounts are computed based on the date of the operation, you have 0$ (0.84-0.84=0).
If operations amounts are computed on today, you have more than 14000$ (14199.52-0.84).

This is not exactly the same, the second option is more realistic.

2- This will be very difficult to understand your accounts

3- This is technically much more complex to compute and will have a huge impact on performances

Regards.


Skrooge, a personal finances manager powered by KDE
http://skrooge.org

 
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