If sales invoice is raised in euros but paid in pounds sterling, how do i clear balance outstanding due to conversion difference?

I can see that the journal makes sense, but how do I get the customer's ledger back to zero?

Hi there, @Sky8.

You can remove the open balance on your customer's invoice by creating a journal entry as suggested by my colleague above. You'll have to make sure to use the correct accounts to ensure they affect your customer's balance. 

If you're not sure about this process, I'd recommend reaching out to your accountant. This way, we can ensure that your book is correct.

On the other hand, you can set up a new currency for the same customer. Just create another account for them and use that to record payments in their currency.  That way, you won't need to convert their payment or use a journal entry. Let me show you how:
 

1. Turn on the multicurrency feature. 
2. Go to Sales and select Customers.
3. Click New customer and enter their details. You can use the same name with a slight difference for this customer.
4. Choose their currency from the Currency dropdown list.
5. Click Save. 

Once done, you can use this customer profile to record and receive invoice payments based on their own currency. 

I’m also attaching these articles for your overview and how Multicurrency works. 

Please let me know if you have any other concerns related to QuickBooks or handling your account. I'm always here ready to help. Have a good one.

All sorted now - many thanks for all your help 

When doing this, do we just make the date of the payment and the date of the journal the same as the date of the payment itself?

Also in the bank transactions screen, do we click to 'exclude' as the transaction will essentially be created by recording the payment from the Customer section? 

I'd be glad to provide answers to your questions, @bcbjork.

When you create a journal entry for a payment, the payment date and the journal entry date should be the same. This will help you keep track of your finances accurately. In this process, I recommend consulting your accountant to ensure your books are correct.

Also, to avoid duplicates and overstatements on your financial reports, you can click "Exclude" in the bank transactions screen.

Just in case you need help reversing or deleting a journal entry, you can use this article as a guide: Reverse or delete a journal entry in QuickBooks Online.

Feel free to return to this thread if you have other concerns besides journal entry and bank transactions. I'm always here to assist.