Transactions entered in foreign currency on App not converting to base currency for reporting
Normally when I enter a transaction in MD on my desktop , and the currency of the account concerned is not currency of the category (which for expenses is my base currency), I see the conversion on the row below " foreign amount" as well as the exchange rate. However, when I enter the transaction on the MD app on my Android this facility does not exist. Therefore I was expecting that this conversion would take place when the transactions were synchronised to MD on my desktop. But, I saw that the transactions were not converted on my desktop, and on the reports the exchange rate is effectively 1:1. An expenditire of 25 euros for example was reported as an expenditure of 25 pounds.
Is this normal, and neither the MD app or MD on my dektop syncronisation process, converts the currency?
How to I go back and correct the currency conversion for many transactions?
As a supplementary question, if I notice on the currency tool that an exchange rate is wrong, and I then correct it, will the transactions that it was applied to be corrected, or will I need to do that manually?
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1 Posted by davidvernonlong on 26 Sep, 2022 07:42 PM
2 Posted by Stuart Beesley ... on 27 Sep, 2022 05:50 AM
I think (hope) that the display on the mobile app is wrong. I know it can’t handle what you are trying to do. Best NOT to touch these on mobile.
To fix, delete and renter on desktop.
No, if you edit tools/currency FD history, txns do not get updated. You have to update txns manually.
3 Posted by Stuart Beesley ... on 28 Sep, 2022 08:11 PM
Ps. I have a related question of my own. I am tussling with whether to have my categories always setup in the base currency and then when entering FX txns to always use the ex rate and convert back to base; or just enter as an fx amount and let MD reports convert back to base at the prevailing rate when running the reports. Thoughts?
4 Posted by davidvernonlong on 28 Sep, 2022 11:08 PM
Stuart, my thoughts:
-In the case of taxable accounts (eg Dividends) , and to the extent that you are taxed in your base currency, any foreign currency transactions normally have to be converted to your base currency at the historic rate ruling at the time of the conversion.
-Company and other legal entity audited accounts normally must also convert at the historic rate at the time of the transaction.
-in the case of personal accounts which are not tax accounts I prefer to fix the rate at the time of the transaction, as if I do otherwise and run a report at the prevailing rate at the time of the report, the category totals will keep changing, will not represent the amount I paid for the foreign currency at the time of the transactions, and make comparisons between different time periods more difficult. However, that is a preference, and I realise there are different ways of thinking about it, for example if most of your income is earned in a foreign currency, there may be some related expenditure you may also wish to report in that currency.
For these reasons I prefer the first of your options, namely "have my categories always setup in the base currency and then when entering FX txns to always use the ex rate and convert back to base"
5 Posted by Stuart Beesley ... on 29 Sep, 2022 04:50 AM
Thanks very much. I’m also leaning towards the first option as I don’t want reports changing every time the ex rate changes when comparing year over year expenses.
6 Posted by davidvernonlong on 29 Sep, 2022 08:26 AM
You are welcome Stuart. You have helped me on numerous occasions.
System closed this discussion on 29 Dec, 2022 08:30 AM.