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Level 1

How to record an insurance settlement?

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!

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Level 15

How to record an insurance settlement?

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

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