Foreign exchange rate difference.

 

Dear viewer

Can you please guide me the regarding the foreign exchange difference which is arise during a transection?

I draft a scenario to understand the situation for example  my functional currency is US$

 

I put an order for 200 euro, and pay 100 euro pay in advance, but next month I got the material and now I have to pay remaining 50%. Now euro rate is change and remain 50% cost me 120 euro.

 

How I treat that extra 20Euro cost in my financial and how I avoid that.

 

Regards

Hamad

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