We have a client who is also a supplier so we need to set off some AP bills against AR invoices along with a bank deposit. They are in different currencies too. Help!

Let me help you sort this out and set off your Accounts Payable (AP) bills against Accounts Receivable (AR) invoices from your client, who is also a supplier in QuickBooks Online (QBO), Lyndall.

First, create a journal entry to transfer the AR and AP balances. However, I recommend reaching out to your accountant to ensure proper accounts are used. Then, set up a temporary bank account called Clearing Account to hold the offsetting amount.

Once done, apply the credit to the invoice. Here's how:

1. Go to + New and select Receive Payment.
2. Select your customer who's also your vendor.
3. In the Deposit to dropdown, select the clearing account.
4. Leave the Amount Received as zero.
5. Select the invoice.
6. In the Outstanding Transaction section, select the checkbox for the journal entry. Then, Save and Close.

After that, refer to these steps to pay the bill:

1. Go to + New and click Pay Bills.
2. Select the clearing account in the Payment Account field.
3. Select the bill from the list. Then, you'll see the available credit with this vendor in the Credit Applied column.
4. Select Save and Close.

Since the transactions are in different currencies, you can enable multicurrency to record foreign transactions easily.

Moreover, you'll want to check out this article to learn how to handle customer and vendor balances in QBO to maintain the accuracy of your books: Manage outstanding balances for customers and vendors in QuickBooks Online.

We'll gladly offer additional assistance if you need further help managing client and supplier transactions in QBO. The Community is open 24/7 to address your queries. Take care and have a good one.