Forum Discussion

BDS09's avatar
BDS09
3 years ago

Insurance Claim

Our business has had to pay $1232.00 inc GST to one of our customers for property damage to their ceiling. They have provided our business with a tax invoice which I have paid. What GL code do I expe...
  • BDS09's avatar
    BDS09
    3 years ago

    Thanks for your response. I have coded the purchase to the insurance gl expense code and I'm aware this includes GST. This was processed as an invoice from our customer and not as spend money. In my research for an answer I found one site that suggested coding the purchase to repairs hence my confusion. I will leave as is.

    With regards to the refund from our insurer there is no GST in the refund? Amount claimed is $1232.00 and 100% is ITC. The ITC deducted amount is therfore $112 less excess of $500 = refund amount of $620.00. In recieve money I should enter the refund amount as $620 but shouldn't I put  a debit amount of $1120 GST Free and a credit amount of $500 GST Free? 

    Please advise further.

LRBooks61's avatar
LRBooks61
Ultimate Cover User

I would code it all to your insurance gl expense code and make sure you have details in the memo

the payment you made will include GST

the excess is GST FREE and the additional payment will have gst

 

the memo should appear in the gl report for your accountant and you can send them the details also

 

lis

BDS09's avatar
BDS09
3 years ago

Thanks for your response. I have coded the purchase to the insurance gl expense code and I'm aware this includes GST. This was processed as an invoice from our customer and not as spend money. In my research for an answer I found one site that suggested coding the purchase to repairs hence my confusion. I will leave as is.

With regards to the refund from our insurer there is no GST in the refund? Amount claimed is $1232.00 and 100% is ITC. The ITC deducted amount is therfore $112 less excess of $500 = refund amount of $620.00. In recieve money I should enter the refund amount as $620 but shouldn't I put  a debit amount of $1120 GST Free and a credit amount of $500 GST Free? 

Please advise further.

  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User
    3 years ago

    I would enter the refund as 

    receive money $620

    gl code insurance 11120 tax code ITC

    gl code insurance -500 tax code FRE a excess

     

    The rationale is that you received a claim for 1120 but to get that you had to pay an excess of 500

     

    hope that makes sense

    Lisa

    • LRBooks61's avatar
      LRBooks61
      Ultimate Cover User
      3 years ago

      Sorry I should have said that you are correct in your thinking re refund

       

      L

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