How to record car insurance settlement

shi
shi Member Posts: 61 ✭

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

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,314 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    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.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

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    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)