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Kris C
Level 1

My work vehicle was written off after an accident and my insurance company have deposited a lump sum for the vehicle. How do I categorise this payment?

 
4 Comments 4
Tom1988
Level 2

My work vehicle was written off after an accident and my insurance company have deposited a lump sum for the vehicle. How do I categorise this payment?

Hi Kris

Were you able to sort this out? I have the same problem and have no idea what to do.

 

IntuitSheila
Level 8

My work vehicle was written off after an accident and my insurance company have deposited a lump sum for the vehicle. How do I categorise this payment?

Thanks for posting in the Community, Tom1988!

 

To record the insurance payment received, let's create an account to track the entry and then make a deposit. Here's how to create an account:

 

  1. Click on the Transactions tab.
  2. Click on Chart of accounts.
  3. Click on New.
  4. Choose Income or Other income account type, and choose the nearest category for detail type.
  5. Enter a Name like Insurance payment or how you want to show on the report.
  6. Click on Save and Close.

Once done, let's go back to the For review tab and categorise the payment using the new account created by selectin it under Category field. And then fill out other fields like GST code.

 

Furthermore, I recommend consulting with an accountant as well to help check of the specific account to use in tracking the insurance claim payment. This is to ensure the transaction is properly categorized.

 

Get in touch with us if you have other QuickBooks related concerns. This way, we'll be able to assist you.

 

Tom1988
Level 2

My work vehicle was written off after an accident and my insurance company have deposited a lump sum for the vehicle. How do I categorise this payment?

Thanks for your reply IntuitSheila. Very helpful.

 

I have a follow up question.

The details of the insurance settlement were as follows:

Vehicle value = $10,400.00

        less ITC = $     945.45

TOTAL           = $  9,454.55

 

I have categorised the $9,454.55 payment as per your instructions.

What do I do about the ITC of $945.45 which they have withheld. Not sure what this means or how to deal with.

Would appreciate your help.

Regards

Tom

 

IntuitSheila
Level 8

My work vehicle was written off after an accident and my insurance company have deposited a lump sum for the vehicle. How do I categorise this payment?

Hello Tom1988,

 

Thanks for getting back to us. QuickBooks Online can record BAS/GST only. For income tax payments, you can record an expense transaction and allocate them to taxes paid category. However, I would recommend contacting your accountant to help you allocate the ITC properly to not mess up your books. As we are not an accounting expert and we can only guide you on how to record transactions in QuickBooks.

 

If you don't have an accountant, you can check this link to locate an accountant: Find an accountant

 

Feel free to comment below if you have further concerns. I am around to help you.