Benji Payments by Adyen Gateway Account Setup Guide - Xero

Modified on Thu, 23 Oct at 2:54 PM

This guide outlines the required accounts for configuring a Benji Payments by Adyen gateway in Benji Pays for Xero.

For details on other payment gateways, please refer to their respective articles.

When setting up a Benji Payments by Adyen gateway, merchants must configure specific accounts for each currency they process. These accounts work together to accurately track payment processing, fees, and bank settlements, ensuring proper financial reconciliation within your accounting system.

Required Accounts by Accounting System

For each currency processed through Benji Payments by Adyen, you must configure the following accounts.

TABLE OF CONTENTS

Required Accounts by Accounting System
Setting Up Accounts in QuickBooks Online
Account Configuration Summary Table
Common Configuration Mistakes
Why These Account Types?
Need Help?

Setting Up Accounts in QuickBooks Online

Before configuring your Benji Payments by Adyen gateway in Benji Pays, you’ll need to ensure the required accounts exist in Xero. Follow these steps to create or confirm the accounts listed in this guide.

Log in to your Xero account.
From the main dashboard, click on Accounting → Chart of Accounts.
Click New in the upper right corner to create a new account.

Account Configuration Summary Table

Account Purpose	QBO Type	Required?
Deposit Account	Current (Asset, Payments enabled)	✅ Yes
Settlement Deposit	Bank	✅ Yes
Processing Fees Expense	Expense / Overheads	✅ Yes
Accounts Receivable	N/A	✅ Yes

⚠️ Important:

If you accept both credit card and bank payments (ACH, direct debit, etc.), you’ll need to set up a separate set of accounts for each payment method in every currency you process.

1. Deposit Account ✅ Required

Account Type: CURRENT
Account Class: ASSET
Additional Requirement: Must have Enable payments to this account enabled
Purpose: Tracks funds in your platform account
Why this type:
- Xero requires current assets for payment clearing accounts
- ❌ Must NOT be a BANK type (Xero restriction)
- The Enable payments to this account flag allows this account to be used in payment workflows
Exclusions:
- ❌ Cannot be type "BANK"
- ✅ Must be CURRENT ASSET with payment capability

Suggested Name: "Benji Pays Clearing - USD"

Example: "Benji Pays Clearing - USD" of type (Current Asset)

2. Settlement Deposit Account ✅ Required (for Credit Cards)

Account Type: BANK
Purpose: Your bank account where we deposits funds
Why this type:
- For Xero bank transfers, the system creates RECEIVE/SPEND money bank transactions
- This enables proper bank reconciliation in Xero
- Must be a BANK type for bank feeds and reconciliation

Suggested Name: Use your actual bank account (e.g., "US Bank - Business Checking" or "Chase Business Account")

Example: "US Bank - Business Checking (Bank)"

3. Processing Fees Expense Account ✅ Required (Gateway Level)

Account Type: EXPENSE or OVERHEADS
Purpose: Tracks platform processing fees
Why this type: Standard expense account for processing costs

Suggested Name: "Credit Card Processing Fees" or "Payment Processing Fees"

Example: "Credit Card Processing Fees (Expense)"

Special: Benji Pays Contact (Auto-Created)

When processing reconciliation transactions in Xero, the system automatically creates or finds a contact named "Benji Pays":

Type: Supplier
Purpose: Required by Xero for RECEIVE/SPEND money bank transactions
Created Automatically: The system will search for this contact and create it if it doesn't exist
Why Needed: Xero requires all bank transactions to have an associated contact

Common Configuration Mistakes

❌ Mismatched Currencies

Problem: The Deposit Account and Settlement Account must be in the same currency.

Solution: Ensure both accounts are configured for the same currency (USD, CAD, EUR, etc.)

❌ Using Bank Type for Deposit in Xero

Problem: Xero's restrictions prevent using BANK type accounts as clearing accounts for Adyen.

Solution: Use CURRENT ASSET type with Enable payments to this account enabled

❌ Missing Processing Fees Account

Problem: Without a Processing Fees Expense account, the system cannot record processing fees

Solution: Configure a dedicated expense account at the gateway level (one account will cover all enabled currencies)

❌ Missing Bank Payment Accounts

Problem: Forgetting to configure separate accounts for bank payment methods (ACH, direct debit) when processing both credit card and bank payments.

Solution: If you process both payment types, ensure you configure deposit and settlement accounts for each method in each currency.

Why These Account Types?

Deposit Account (Current Asset)

The Benji Pays clearing account is not your bank account - it's our platform holding account. Money flows like this:

Customer pays → Funds enter platform balance (Deposit Account: "Benji Pays Clearing - USD")
Fees are deducted → Reduces the clearing account
Funds are settled (sent) to your bank → Funds move to your bank (Settlement Deposit Account: "US Bank - Business Checking")

Using "Current Asset" reflects that these are funds you own but don't directly control.

Settlement Account (Bank)

This is your actual bank account. It must be "Bank" type to:

Enable bank reconciliation
Match with bank feeds
Properly track cash position

Processing Fees (Expense)

Processing fees are a cost of doing business. Recording them as expenses:

Accurately reflects your profit margins
Provides visibility into payment processing costs
Enables cost analysis and optimization

Need Help?

If you're unsure about account types or configuration:

Contact Benji Pays support for guidance on account mapping
Consult with your accountant or bookkeeper
Review your chart of accounts structure

Note: Account type requirements are based on both Benji Pays' integration requirements and accounting best practices. Following these guidelines ensures accurate financial reporting and seamless integration.