How to register Insurance refund invoice

[Dave H]

Alberto,

I have the following expenses setup

Medical Expenses
Medical Expenses : Refunds     -- Negative Balance
Medical Expenses : Person 1    -- Positive Balance
Medical Expenses : Person 2    -- Positive Balance
Medical Expenses : Person 3    -- Positive Balance

When I pay for medical expenses, the refund is usually deducted at time of
service and payment as follows :-


                                                Tot Expense    Tot Rebate
Consultation Fee       - Expenses : Medical Expenses : Person 1
                         $61.50
Credit Card Payment - Liabilities : Credit Card
                                                         $20.90
Health Fund Refund   - Expenses : Medical Expenses : Refunds
                                            $40.60

If the refund is paid later which sometimes happen (your situation) I do
the following :-

                                                Tot Expense    Tot Rebate
Bank Account Refund Payment        - Assets : Current Assets : Cheque
Account               $76.50
Balancing Expense Account Posting - Expenses : Medical Expenses : Refunds
                                 $76.50

Works for me anyway :-)

Hope this helps,

Cheers Dave H.


On 28 September 2016 at 19:22, Alberto Dante <alberto.dante at gmail.com>
wrote:

> I'm individual with small business, and I need to manage both.
> So, should I register the insurance refund transaction as following:
>
> Assets:Current Assets:Checking Account:Bank Account
> Expenses:Medical Expenses:Insurances Refunds
>
> with negative values in Expense account?
> Thanks, Alberto
>
> On 28/09/2016 02:48, David Carlson wrote:
>
>> If you are an individual asking about recording details of claim payments
>> made to you, I think that you should not use any business features.  I
>> would not call them refunds, however, even if they are to reimburse some of
>> your expenses arising from a loss.
>>
>> If you want to track losses and reimbursements to see if you have a net
>> loss that may qualify for tax purposes you might set up a special expense
>> account to collect all that data.
>>
>> Conversely, if you are an insurance company, you probably want to use a
>> more sophisticated program than GnuCash.
>>
>> David C
>>
>> On Tue, Sep 27, 2016 at 9:59 AM, Alberto Dante <alberto.dante at gmail.com
>> <mailto:alberto.dante at gmail.com>> wrote:
>>
>>     Hi,
>>     I need to register some Insurance refund invoices (eg. health
>>     expenses, car/home damages, ...).
>>     The insurance companies pay the refund to my bank account and send
>>     to me a detailed invoice of the payment.
>>     Which is the correct way to register the insurance company
>>     (business features)? Supplier or customer? And the invoice?
>>     Without using business features, the following accounts should be
>>     involved (I think):
>>
>>     Assets:Current Assets:Checking Account:Bank Account
>>     Income:Insurances refund
>>
>>     What about in case of business features?
>>     Where I can find some examples?
>>     Thanks, best regards
>>     Alberto
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