Insurance Payout

How would I account for an insurance payout in Quick File ?
Thanks

Hello,

You could do it this way:

If the claim is related to repairs:

Debit repairs to a repairs accounts in expenses when incurred in your P&L, regardless of insurance proceeds.
You can either:

  • Credit the insurance proceeds to the repairs account - Tag it directly from the bank
    or
  • Create a new nominal income account named for exemple ‘Proceeds from Insurance Repayment’ and tag the amount in this account from the bank

If the claim carries over more than one year, please ensure that you carry forward as deferred income (in the balance sheet) the proportion that relates to the repairs to be carried out in the following period.

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