If an invoice is created in euro and the customer pays in USD, how do you apply the USD payment to the euro invoice?

1. Create payment by clicking "pay" on the invoice 2. Change currency on the payment record to USD a. It will be defaulted to EUR since a payment will default to the same currency as the invoice 3. Pick the USD bank account you're recording the payment to 4. Save a. A realized gain will likely be recorded via a Currency Reval record that will probably attach to the payment b. Or maybe it just shows in the GL impact, I can't remember. Note that this assumes that USD is the functional/base currency for the subsidiary that this invoice is on. If it's not, then the answer to your question is "you can't." You can only apply payments in the currency of the invoice or the base currency of the subsidiary.

When I do that, the EUR invoice disappears from the apply list.

you will probably need to transfer the payment currency from to USD to EUR. do you have a bank or clearing account in the EUR currency on that subsidiary?

Is USD the functional currency on the sub of the invoice?

The way we do it is: 1) Journal to record the USD payment into Bank Debit Bank Credit Realized Gains and Losses 2) Journal to clear Euro A/R balance Debit Realized Gains and Losses Credit A/R Make sure you enter the Client in the Name field on the Journal 3) Then match of the invoice and the Journal on the Client account to clear from the A/R report