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S
Seattleseven
November 26, 2018
Question

How to record an insurance settlement?

  • November 26, 2018
  • 1 reply
  • 0 views

Our auto insurance company has issued us a check for repairs to a vehicle that was involved in a collision.  How do I record this as a non-taxable payment received?

 

Thanks very much!

1 reply

Rustler
Rustler
November 27, 2018

You post the actual repair costs you paid for, deductible, etc, to an expense account

deposit the funds the insurance company gave you and use that same expense account as the source account for the deposit

 

whether that is income on the P&L (negative expense) depends on whether you got more than you paid

    T
    TVo
    May 28, 2021

    How should I record check received from insurance company for totaled vehicle that was fully paid for?

    J
    JonpriL
    May 29, 2021

    Hello @TVo,

     

    In QuickBooks Online, you can create a bank deposit for the check you received from the insurance company of your vehicle. Let me walk you through the steps on how to accomplish this.

     

    To start with, here's how you can create a deposit account for your insurance:

     

    1. Go to Accounting.
    2. Select Chart of Accounts.
    3. Click New.
    4. Under Account Type, select the appropriate account type.
    5. On the Detail Type menu, select the category on the nature of your insurance company.
    6. Enter a name of your new account. Say Insurance Company.
    7. Click Save and Close.

     

    Once done, you can go ahead and create a bank deposit for the amount of the check you received. You can read this article to learn more: Record and make bank deposits in QuickBooks Online.

     

    Additionally, I've also included this reference helpful with a compilation of articles you can use while working with us: Browse all articles for your QuickBooks product.

     

    Don't hesitate to post again here if you have other questions or concerns with QuickBooks tasks and navigations. I'm always around happy to help. Stay safe and have a good one!

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