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Leslie_GoodCentsBookkeeping
Level 1

How should you enter an expense for repairs when there will be an insurance reimbursement?

 
3 Comments 3
SashaMC
Moderator

How should you enter an expense for repairs when there will be an insurance reimbursement?

Hello Leslie_GoodCentsBookkeeping, 

 

Thank you for reaching out to the QuickBooks Community! It would be best to reach out to your accountant to see the best approach for this question.  If you don't have an accountant, I do have two options for you to get assistance with this. You can go to Find an Accountant or our QuickBooks Live Bookkeeping. Both offer a free consultation, so please don't hesitate to take advantage of that opportunity! These two will be able to get you on the right track.

 

Reach out to us if you have any other concerns. We're here to help. Have a great day.

jaapkrijger
Level 4

How should you enter an expense for repairs when there will be an insurance reimbursement?

I think these are two different transactions:

1. you receive invoice and pay for it

2. you invoice insurance and they pay

Rainflurry
Level 12

How should you enter an expense for repairs when there will be an insurance reimbursement?

@Leslie_GoodCentsBookkeeping 

 

If the amount is material, record the expenses under 'Other Expenses' (or a sub-account of other expenses if appropriate) and the insurance proceeds as an 'Other Income' account (gain from insurance claim or something similar).  You want to keep this off of the company's income from operations portion of the P&L (other income and expense show up below), unless the amounts are immaterial to the company, in which case, it is acceptable to include them in the operations portion of the P&L.

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