We have a supplier who is located in Europe and bills us in Euro,our home currency is CAD, but we can pay them only in USD bank, how can we setup in Euro and pay in USD?

Hello there, @abid-finpro-gmai. 

It's my pleasure to have you here on the Community page. I help with recording payment to your customer's invoice. 

To ease the transition between two different foreign currencies, I advise starting by opening a dummy account in the local currency.

Here's how: 

1. Go to the Gear icon, then select Chart of Accounts
2. Select New
3. Under the Account Type column, select Cash and cash equivalent. Under the Detail Type column, pick Cash on hand. And under the Name column, type in Dummy Bank
4. Before saving and closing, make sure that it is set to your home currency (for example Euro or whatever is your home currency).

Then, record the payment of the USD invoice.

1. Go to the (+) New icon, then select Receive Payment.
2. Set the Deposit To to the Dummy Bank.
3. Fill in the necessary information.
4. Before saving the transaction, take note of the home currency (Euro or whatever your home currency) amount displayed at the bottom right.

Once done, you need to transfer the amount from the Dummy Bank to the EUR bank account through bank transfer.

1. Select Transfer from the (+) New icon.
2. Under the Transfer Funds From column, select Dummy Bank from the drop-down arrow.
3. Under Transfer Funds To, choose the EUR Bank from the drop-down arrow.
4. From the Currency column, select Euro/home currency from the drop-down arrow.
5. Enter the amount.

For more tips about managing multi-currency transactions in QuickBooks Online, you can check out these articles:

• Receiving and making payment for a foreign invoice/ bill with a foreign currency
• Assign a foreign currency to a customer in QuickBooks Online

If you're comfortable with using journal entries, you may open this link: Multi-Currency: Journal Entry Error Message.

If you have any follow-up questions about recording invoice payments, please let me know by adding a comment below. I'm more than happy to help. Have a good one!