Naming of foreign exchange gains (losses) account

I forgot to mention, you need to upgrade to the latest version as I only made it that way today.

@lubos, I see that the forex gain/loss account now appears only when a foreign currency has been introduced somewhere else in Manager. That’s excellent.

But you say my concern about reversal of the sign convention has been fixed. I don’t see that. For example, if I create a new cash account and denominate it in a different currency, exactly the same account as before appears in the same place. That is, Foreign exchange gains (losses) appears in the Expenses group. When you said it was fixed, I expected to see either (a) an account of that name, but moved to Income or (b) an account in Expenses with wording reversed to Foreign exchange losses (gains). Am I missing something, or am I misunderstanding you?

I’m now using v 16.1.79.

@brucanna, can you clarify what you mean by this? I see only one account for loss on disposal of fixed assets. It shows up under expenses even when there are no asset disposals. I see no corresponding account for gains on disposal of fixed assets. I have always wondered why that is.

@lubos, if @brucanna is correct about gains and losses on disposal showing up in different groups, how would I activate the gains account? Since it would have to be linked to other fixed asset coding, I obviously cannot just create an income account with that name. Or is the proper question why I see the losses account when there have never been any losses?

Three points I would like to raise:

One is there some way to have the account only actually show when there is a currency gain or loss as I use British Pounds, but pay two suppliers in US Dollars. I pay both of them whatever the exchange rate is at the time, so I never have a currency gain/loss. For most people like me the currency gain/loss thing is irrelevant so I am sitting with an empty account that I will never use!

Same concept with rounding expense. I don’t use that as my clients found it did not work for them, so again sitting with an empty account I will never use - Is it not possible to “turn off” rounding in settings thus removing the unused expense account as it will never be used by me!

Same concept for journal entries. I have never used this once! But I cannot delete the tab! Again could we have an option to hide the tab.

This is only correct if you generate your Profit & Loss on cash-basis. On accrual-basis, you should definitely have currency gain or loss.

This account only shows if you use rounding on at least one invoice. You need to find that invoice and make sure no rounding option is selected but careful. This will change the total of invoice so you might need to add extra line item to round the total manually.

Every business will have entries which cannot be recorded any other way but by journal entry. Profit distribution or recording provision for income tax are such examples.

For new accounting entities it does appear in Income group. For older ones it could still appear under expenses but it’s easy to move to income if desired.

@lubos thank you for quick response.

I did not realise that the rounding expense only showed if I had any rounding in any invoice. I will hunt that invoice down! I had originally meant to use rounding, but my clients did not like it as it messed up their purchase orders, so I abandoned that idea and I was not aware that I had rounding on any invoice. Thanks.

Would it not be possible to do corporation tax outside of the journal entries in the future? I presume that your long term plan would be to add functionality to enable businesses to pay corporation tax outside of journal entries - we already do that for VAT returns. Its not a problem having the journal tab there, but it would be nice to get rid of tabs that I basically never use or will only use once a year!

Would it not be possible to say if Accounts are setup for cash basis don’t show currency gain/loss, but if using accrual then show currency gain/loss?

Confirmed. I had several invoices on round to zero. Changed them and the rounding expense has gone! Thanks - Much Appreciated.

The currency gain or loss can still be on cash-basis. For example, if you maintain bank accounts or cash accounts in other than base currency.

But I do agree on one thing. If foreign currency is used on customers/suppliers only, then there won’t be ever any currency gain (loss) on cash-basis so this is something I could take into an account.

By the way, to find the invoice which is using rounding, simply generate profit & loss statement for the period since you started using Manager.

This is how I work - I only pay suppliers in a different currency. Don’t have any banks in foreign currency. Cheers

Oops, you have caught me out misinterpreting a response in another topic.
Lubos had stated “difference between selling price and book value of asset would be automatically posted as gain (loss) on sale of fixed asset” which I read as two accounts. Where in fact he was quoting the actual account name.

It interesting that with both exchange and fixed assets, Manager assumes losses are more likely to occur by placing them in the Expenses group. You could always edit the name in the Expenses group, create accounts in the income group and Journal across the income producing transactions

When you state “why I see the losses account when there have never been any losses” I assume you are referring to the P&L. Manager seems to have this need to show accounts regardless if they have a balance (or even a transaction).

Maybe a future nicety would be - only show non zero accounts in reports, especially for TAB created control accounts

You should be able to remove the Journal TAB or any other wanted TAB by going to Customise under Settings and untick it, Journals are near the bottom.

For myself Journals play a valuable role on a monthly basis refer to topic “:Memorising Transactions”

This is not the case, at least not for me. I have several accounts I originally set up in my chart of accounts that, by coincidence, have never had entries in three years. They have never shown on my P&L. I think about getting rid of them, but since they don’t show up on any reports, I have not.

Yes, I saw that I was able to move it. But I didn’t know what that might do to the math. If I move the account to Income to reflect its default title, will signs reverse? That is, will a gain on disposal show as a positive under Income? (Remember, since I haven’t used it, I’m assuming a gain on disposal would currently show as a negative under Expenses.)

Of course, I also realize I can rename the account, but it seemed wise to fix the default name to reflect default behavior.

You cannot untick journal tab even if tab is empty! That was my beef with the journal tab. I never use, but I cannot hide it! I will probably have to use it in May to do my corporation tax as there is no other way to do that transaction. But I don’t need the journal tab for anything else so I am hoping that Lubos will be able to come up with a way to pay the corporation tax the same way I do for VAT.

Are you talking about reports?
I was mainly referring to the Summary page, where it is displaying every chart of account - P&L & BS

Sorry about that, I thought I had selected it.
Why do you have to use it for the corporation tax?

Several two-way conversations are intermingled here. So things are getting confusing. But yes, @Brucanna, I was referring to reports. All accounts do appear on the Summary page, with now the exception of the forex gain/loss.

When I asked some months ago, I was told that I would need to use a journal entry to do the corporation tax.

corporation tax