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Setting up a foreign stock investment

Questions about updating prices or transactions in Fund Manager

Postby flight » Fri Jul 14, 2017 5:52 pm

Mark,

I have set up a new foreign stock investment and went through the steps in the FAQ.

https://www.fundmanagersoftware.com/tutor_currency.html

https://www.fundmanagersoftware.com/faq ... wnload.php

I have both the foreign currency and stock set-up, with historical price retrieval and clicked on View - exchange rate adjusted.

However, when I look at the cash ledger and my cash balance, i still see the purchase in the native currency. How do I correct this?

Secondly, if i am borrowing money in this particular currency, will I see a negative currency balance on my Portfolio Value report?

thanks
flight
 
Posts: 151
Joined: Sun Jul 27, 2014 11:03 am

Postby Mark » Sat Jul 15, 2017 5:56 pm

Hi flight,

What currency is your foreign stock, and what currency is your cash, just to keep things clear? When you bought your foreign stock, what currency did you pay for it with? If you bought a stock in currency X, and you paid with cash in X, then record a buy in the stock assigned to X, and record a sell in a cash account for currency X. If you have cash in multiple currencies, you need to set up a cash investment for each currency that you're holding cash in.

If you have a negative amount of cash (like margin), yes you can have a negative share balance in that cash account.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Postby flight » Sun Jul 16, 2017 3:05 pm

The native currency of the stock is CAD, with the rest of my cash/investments US dollar.

I've done four things to set this up:
1) Created the new stock, denominated in CAD.
2) I retrieved the price history for the above.
2) Created the new currency, exactly as described here: https://www.fundmanagersoftware.com/tutor_currency.html
4) Recorded the buy transaction of investment in step 1.

I have also toggled the view-exchange rate adjusted.

However, the purchase of CAD denominated stock - let's say its around 5,000 CAD -- is being debited through my USD denominated "cash".

I'm sure I'm just missing one last final step, if you could let me know, it would be great.
flight
 
Posts: 151
Joined: Sun Jul 27, 2014 11:03 am

Postby Mark » Sun Jul 16, 2017 5:27 pm

Hi flight,

If your CAD stock is in a sub-portfolio where the default cash account is in USD, the cash will be taken out in USD. If it was paid for from a separate cash account in CAD, then you can either record this manually, or create a sub-portfolio for just your CAD investments/cash, like:

Code: Select all
- Account
  - US Holdings (USD Cash)
  - CAD Holdings (CAD Cash)


You would need to create an investment for your CAD cash, and create a sub-portfolio where you put this CAD cash and your CAD investment. Assign this CAD cash as the default cash account in CAD Holdings, so when you record your buy of the CAD stock, it takes cash from the CAD cash investment, which is assigned to the CAD currency also.

What you're describing you'e done will take out the equivalent USD cash to pay for the CAD stock purchase, since that USD cash is your one and only default cash account.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Posts: 11253
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby flight » Sat Nov 18, 2017 9:28 am

Mark - I'm still having trouble with this and wanted to reach out again.

I have a Canadian listed stock. I've set the properties to currency = CAD.

When i book the transactions under the stock, it looks like they are being converted to USD. this is what I'd like to see.

However, when I look at my cash ledger, it appears to be deducting the purchase in CAD.

Meaning the deduction in the cash ledger shows -5,501 (USD, I believe)

But the security shows 5,501 CAD converted to USD of $4.124.80

I think its causing performance issues, can you help here.
flight
 
Posts: 151
Joined: Sun Jul 27, 2014 11:03 am

Postby Mark » Sat Nov 18, 2017 9:37 am

Hi flight,

To lessen the confusion, turn off "View / Exchange Rate Adjusted", so you see everything in the native/assigned currencies. Check the currency assigned to both your investment and cash.

Here are things to check:
What currency is your default cash account?
What currency is your investment?
Did you use a transaction specific exchange rate?
If not, what was the global recorded exchange rate for the transaction date?

Here is an example of how it should work:
Assuming your cash is in USD. (Verify under Investment Properties... of your cash investment.)
If you record a buy of 5500 CAD in a CAD investment, and your exchange rate on that date is 1.375 CAD = 1 USD you will have a sell of 4000 USD in cash.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Posts: 11253
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Postby flight » Sat Nov 18, 2017 12:09 pm

I turned off the View / Exchange rate adjusted.

Now the cash ledger and transaction ledger show a purchase for 5,501. The Cash is "$". The stock is "CAD".

So, I still have it wrong.

And is there any difference between "$" and "USD"?
flight
 
Posts: 151
Joined: Sun Jul 27, 2014 11:03 am

Postby Mark » Sat Nov 18, 2017 12:11 pm

Hi flight,

Yes, there is a difference between $ and USD. Look at "Options / Currency Settings...". If you have $ set as your default, make sure your $ investments are assigned to that, and not USD down in a different currency position.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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Posts: 11253
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Postby flight » Sat Nov 18, 2017 1:16 pm

I have everything set to "$" except for my one CAD stock.

Regarding your statement:

"If you record a buy of 5500 CAD in a CAD investment, and your exchange rate on that date is 1.375 CAD = 1 USD you will have a sell of 4000 USD in cash."

How do i get it where I enter the CAD information the but $ equivalent is recorded in cash and security transaction ledger?
flight
 
Posts: 151
Joined: Sun Jul 27, 2014 11:03 am

Postby flight » Sat Nov 18, 2017 1:25 pm

As a work around, I've coded the CAD security as "$" and then converted all of the CAD prices into USD at the daily exchange rate.

I'll just manually upload USD equivalent prices.

Its WAY too complicated otherwise.
flight
 
Posts: 151
Joined: Sun Jul 27, 2014 11:03 am

Postby Mark » Sat Nov 18, 2017 1:26 pm

Hi flight,

Make sure your cash is assigned to $. Make sure your investment is assigned to CAD. Make sure you have an exchange rate investment assigned to convert between CAD and $ under "Options / Currency Settings...". Please see this multi-currency tutorial for details.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11253
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby flight » Tue Aug 28, 2018 6:21 pm

Mark -

I was hoping to revisit this. I feel like I've followed your instructions exactly and yet I am not able to get a foreign currency to debit in a cash account.

I've created a separate sub-portfolio, as instructed.
flight
 
Posts: 151
Joined: Sun Jul 27, 2014 11:03 am

Postby Mark » Wed Aug 29, 2018 8:43 am

Hi flight,

Maybe you could describe what you're doing again in detail, and what is going wrong? There isn't anything special about debiting cash when using another currency. It works the same no matter what the currency. If you have a transaction that uses/generates cash in a sub-portfolio with a default cash account assigned, that default cash account will get the cash added/removed.

You might like to watch our Track Cash Tutorial.

So, if you have investments in currency X and want to use currency X when buying/selling make sure those investments are in a sub-portfolio with a cash investment assigned to currency X as the default cash account for that sub-portfolio.

You might also like to watch our Multiple Currency Tutorial.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11253
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby flight » Wed Aug 29, 2018 6:18 pm

I think I've got this squared away now.

How do the performance reports treat the native currency? With respect to the base currency (in my case, USD) and calculating accurate performance (USD).

thanks
flight
 
Posts: 151
Joined: Sun Jul 27, 2014 11:03 am

Postby Mark » Wed Aug 29, 2018 7:06 pm

Hi flight,

If you turn on "View / Exchange Rate Adjusted", everything is adjusted to, and displayed in your default currency. Performance figures are displayed, factoring in any exchange rates necessary to convert everything to your default currency.

If you turn off "View / Exchange Rate Adjusted", performance figures that include both currencies will be reported as N/A, as you can't add apples/oranges. You can force FM to "add apples/oranges" by going to "Options / General Preferences... / Other" and turn on "Allow Summing Values from Different Currencies".
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11253
Joined: Thu Oct 25, 2007 2:24 pm
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