We are a HOA. We incurred property damage from an auto accident and received an insurance payment. How to enter?

I'm happy to help you with the steps to correctly record the insurance payment and the incurred loss from the property damage, KJW_85614.

 In cases where an HOA incurs property damage and receives an insurance payment, it is important to properly record the receipt of the insurance funds and the subsequent replacement costs. To accurately record these transactions in QuickBooks, you'll need to record first the insurance payment.

Here's how:

1. Go to the Banking menu and select Make Deposits.
2. In the Make Deposits window, click OK if the Payments to Deposit window appears.
3. In the Deposit To field, choose the bank account where you deposited the insurance check.
4. Enter the date of the deposit.
5. In the Received From field, enter the name of the insurance company.
6. In the From Account field, select any insurance account. 
7. Enter the amount of the insurance payment.
8. Click Save & Close.

Then, record the loss of property damage to your company using the Journal Entry.

Here's how:

1. Hover Accountant, then select Make General Journal Entries.
2. Enter the date of the property damage.
3. On the first line, in the Accounts column, select an expense account that represents the loss due to property damage.
4. Enter the amount of the loss (the cost to replace the damaged common area items) in the Debits column.
5. On the next line, in the Accounts column, select any insurance accounts.
6. Enter the same amount in the Credits column.
7. Click Save & Close.

If the replacement is paid directly out of your checking account or with a credit card, simply record the transaction as you normally would.

Here's how:

1. Go to the Banking. 
2. Then, select either Write Checks or Enter Credit Card Charges.
3. Enter the details of the transaction, ensuring you categorize it to the appropriate expense account for the replacement costs.

Feel free to read this article for more details: Record transactions for a property management company.

I also recommend consulting with your accountant for personalized guidance. If you don't have an accountant, we can assist you in finding one nearby who can provide expert advice tailored to your specific needs.

Additionally, I've included an article that will guide you on how to customize any report you generate: Customize reports in QuickBooks Desktop.

These steps ensure that your financial records accurately reflect the insurance payment received and the associated loss. If you have any more questions or need further assistance, please feel free to reach out.

@KJW_85614 

The insurance proceeds should be recorded as revenue and the cost to make the repairs should be posted to the appropriate expense account.  If the repair costs are less than the insurance proceeds, that will increase your net income.  If the repair costs are more than the insurance proceeds, that will reduce net income.    

@RhoiceW 

You're advice is incorrect and could get your customer in trouble with the IRS because it will cause your customer to not report the income from the insurance proceeds as well as double-booking the expense.  Are you just guessing?   

@KJW_85614   It's obvious that @RhoiceW  has no idea how to record this type of transaction.  If you follow those instructions, you'll end up double-booking the expenses and you will have two entries in a random "Insurance" account without recording the income from the insurance proceeds.      

EDIT:  You're Your advice is incorrect.  

Let me clarify and see if this changes anything.  We are a self managed HOA (incorporated).  

1.)  We incurred fully depreciated property damage as a result of an auto accident (loss - How to record?)

2.)  We received an insurance payment for the damages (gain - How to record?)

3.)  We will make repairs (expense - How to record?)

Loss & gain will balance, but expense has no income to balance against.  And if we choose not to fully repair the damaged property, it would not seem like it is income because we did incur the loss.  Or is it like we sold an asset?

-Kevin