Why do Categories have currencies? How can I change the Report currency?

Robert's Avatar

Robert

17 Nov, 2021 12:59 AM

Hi - I don't see why categories need a currency. A category is simply a sub classification of income or expenses. The currency is determined by the bank or other asset/liability. All the transactions a USD bank are in USD and all the transactions in a CAD bank are Canadian dollar. If I want a report of expenses from both accounts then I select the currency of the report and then totals are converted to either USD or CAD. Other programs ca handle this. With Moneydance I need USD and CAD categories. Very messy and inconvenient. Deal breaker for me. Am I missing something? Thanks

  1. 1 Posted by dwg on 17 Nov, 2021 01:30 AM

    dwg's Avatar

    I'm a fellow user.

    Moneydance has been designed using accounting principles. With accounting all transactions are held in "accounts" hence Categories are really a special type of account. The currency is designated as the account level hence account/categories cannot contain transactions in a mix of currencies, in other words all transactions in an account/category must all be in the same currency.,

  2. 2 Posted by Robert C on 17 Nov, 2021 01:44 AM

    Robert C's Avatar

    Hi - I understand what your are saying.

    However, I am used to “Accounts” being on the balance sheet. Categories are income/expense items. A category is not a balance sheet account, only a classification(“filing system”) of income and expenses. Categories with fixed currencies are not necessary. Quicken/QuickBooks has been handling currencies this way for decades.

    Categories with fixed currencies make merged account reporting virtually impossible.

    Cheers

  3. 3 Posted by dwg on 17 Nov, 2021 02:30 AM

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    Perhaps instead of saying "accounts" I should have said "registers". In Moneydance currency is set at the register level.

    Yes Income and expense items are not balance sheet items, They are Profit and Loss of course, but the bottom line of the P&L goes into the Balance sheet. So I&E items do impact the balance sheet, not hat we have to worry about that with Personal finance.

    Quicken does not follow accounting rules, I do not know how Quickbooks would - perhaps some form of sub account. I learnt bookkeeping many years ago using paper and I do not know how you could handle multiple currencies in a register, you would typically convert the transaction at the time. In other instances if you operate across borders you would be likely to have books in each currency/country and bring the results together at the end for reporting.

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