How to record car insurance settlement

shi

Reckon 2023 plus Desktop

The car insurance company is going to sent a fund for the insurance recoveries. I am not sure how to record it in Reckon.

Bank DR 1200

Insurance Recoveries CR ( Income?) 2000

Insurance access fee DR ( Expense?) 700

Unexpired Rego DR ( Expense?) 100

Thank you

Acctd4

Hi Shi

You need to record this via a Sales Receipt to ensure it is included in your G1 BAS figures. You’ll need to create a new Item, linked to a new Income-type Account for this.

Check the documentation/communication from the insurer to determine if any GST has been included as this will depend on what the insured selected for their ITC entitlement.

If there are some components with GST & some without, you will need to enter multiple lines on the Sales Receipt for this. GST tax code should be used for any figures with GST.

Depending on the specific components being paid out, there may also be FRE (or INP). If there are any components to be BAS-excluded, you should leave the tax code BLANK for these lines.