Escrow Disbursement

@MOCORPS 

Technically, this is not an escrow, it is an accrued expense (expenses incurred but not yet paid for).  When you enter the monthly $1,000 expense, are you also entering $1,000 into a liability account?  If not, that's what you want to do.  Then, after 11 months, you will have booked $11K in insurance expense and $11K in your accrued expense liability account.  When you pay the premium, assign the accrued expense liability account to the payment.  That will reduce the liability (the amount you owe to the insurance company) to $2K.

When entering the $1,000 monthly expense, you can enter it as a bill if you want the accrued expense liability to sit in A/P or create a different other current liability (OCL) account called 'Accrued Insurance Expense' (or something similar) and enter that on the bill as a negative $1,000 to create a $0 bill.  Then, assign the 'Accrued Insurance Expense' OCL to the $9K payment.  It really depends on where you want the accrued expense liability to sit on your balance sheet until you pay the premium - in A/P or in 'Accrued Insurance Expense'.