How to record expenses & interco accts incurred by India sub on US parent's books?

I am the Controller for a start up US parent software development company that has a wholly owned India sub. The India sub incurs expenses, like consultant fees, in India, but the invoice is paid out of the US with US dollars. Do I record the entry as a debit to Interco Rec, credit to cash in the US parent and debit expense and credit Inter Pay on India's books? What exchange rate do I use? Do I use the exchange rate the date the bill was paid? What about foreign currency issues at month end? The consultant bills are in Rupees, but debited out of my bank acct in US dollars.