30 September 2021
Dear Experts, I have a query regarding the foreign exchange transaction booking.
We pay a vendor in the US in US dollars as an advance payment (Advance for 3 months work) for the services they will provide us in the coming months. They send us the invoice monthly and the exchange rate is different so advance cannot be fully settled with the invoice they send us.
My question is how can we settle the advance payment with the invoices they send us as they send us a monthly invoice and the advance payment is done 3 months advance. Should we settle it at the end of the year or every month or every 3 months using foreign exchange gain/loss account?
CAclubindia
