User wants to use a single bank account for both the deposit account and expense account when setting up BQE ePayments, but encounters an error message:
Transaction cannot be done between the same accounts.
In BQE ePayments, the deposit account and expense account serve different purposes, and therefore, they cannot be the same account. Here is why:
- Deposit account: is the account where payments from your clients are deposited. It reflects the incoming funds from transactions made through ePayments.
- Expense account: is used to log the charges or fees associated with processing ePayments, such as transaction fees. It helps track the expenses incurred for using the ePayment service.
The deposit account is typically your business bank account (checking or savings) where the net payment is deposited after transaction fees are deducted. On the other hand, the expense account is an internal category in your accounting system to record fees and other costs related to ePayment transactions.
Example: Let’s say you send an invoice for $1,000 to a client. They pay using ePayments, and the processing fee charged by BQE CORE is $8. In this case, the payment breakdown would look like this:
- Deposit account: $992 (net payment after processing fee is deducted)
- Expense account: $8 (processing fee)
- Accounts receivable: $1,000 (the invoice amount is cleared)
In your bank account, you will only see the $992 deposit. The $8 processing fee is tracked separately under the expense account within BQE CORE, which will reflect in your Profit and Loss (P&L) report.
If you are only using BQE CORE for invoicing and not for accounting, you can still process ePayments, However, you will miss out on some advanced features such as tracking of processing fees/pass-through amounts, and bank reconciliation, which are available with BQE CORE Accounting.
For details, check out BQE ePayments Help Center article. If you need further assistance with BQE ePayments setup, feel free to contact BQE Support or your Sales Account Manager.