Insurance Claim

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  • Question
  • Updated 3 years ago
Hi all,
How to record the refund from our insurance claim from insurance company on Reckon Account Hosted?
Thank you
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Nia

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Posted 3 years ago

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John Gibson, Accredited Partner

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Typically I record a Sales receipt transaction, allocating the refund to 'Other Income' account or 'Insurance Recoveries' account - some clients will allocate the refund back to the expense account as a (negative) expense but that method does not properly comply with tax legislation, where the Gross income should be noted rather than Net income.
Create a separate Item to use, called Insurance Recoveries, assigning the Item to 'Other Income' or 'Insurance Recoveries' account/s
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Nia

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Hi John,

Thank you for your response.
I will try to follow it.

Nia