Mark,
I am having a bit of problem recording forex transactions.
Example:
AUD/USD trade - sold $1M AUD @ $1.08 giving me $1.08M USD.
My base account for fund manager software is all in AUD.
How do I create the investment transaction which will track the changes in exchange rate?
I have tried creating an investment called AUDUSD with a base currency of USD. Then I enter a transaction that sells 1M shares of AUDUSD @ price of 1.08 which gives me a value of 1.08M USD.
This creates a problem in my broker cash account - it increases the total of my AUD account by $1.08M AUD.
I tried setting up a USD cash account and link the investment to the USD account and manually adjust the AUD account. That is, I reduce $1M in the AUD cash account and then when I do a sell AUDUSD, the USD cash account would increase by $1.08M. The problem with this method is that I have problems with the valuation reporting. It is not converting the USD cash account to AUD properly eventhough I have tick the exchange rate adjusted view. Also, the overall portfolio balance is incorrect when including both the investment and the USD cash account.
How do you record such transaction that allows easy pricing with the exchange rate and also tracking the balances correctly.
Thanks.
Matt