[GNC] Where to charge? Ins pays us, we pay vendor.

Fran_3 mailbox0600 at yahoo.com
Tue Feb 11 18:33:14 EST 2020


 In the case at hand...The initial expanse was medical billed and billed to the patient.The insurance company sent the money for the medical bill to the patient.The patient aid the medical provider.
So we have 3 transactions to record...1- The Medical Bill charged to AP & Med Exp2 - The Ins reimbursement charged to ?? & ??3 - The Bill Pmt charged to AP & Checking
or what?
Thanks for any help.

    On Tuesday, February 11, 2020, 05:38:10 PM EST, Michael or Penny Novack <stepbystepfarm at comcast.net> wrote:  
 
 On 2/11/2020 11:47 AM, Fran_3 via gnucash-user wrote:
> When an insurance claim occurs the insurance pays us and we pay the vendor.
> How to we charge the deposit from the insurance company and the payment to the vendor?
> I considered setting up an Expense Account named Insurance Transactions or Insured Events or whatever...
> Then allocating the insurance payment to that "Expense" account
> and then allocating the vendor payment to the same "Expense" account
> Or would you suggest just using the Insurance Payments Account where you record payments for the policy?
> How would you guys handle such an instance?
> Thanks for any help.

This is an accounting question, not a gnucash question, and to really 
know how to answer your question would need to know what conditions (or 
lack of conditions) were attached to the payment from the insurance company.

I'll perhaps need to give an example? In 2006 we had a house fire, and 
our insurance had "replacement" coverage. So each covered thing (or 
category) had TWO amounts associated with it. One amount was for the 
current depreciated value assigned, the other (far higher) was if we 
were choosing to replace. For what we opted to replace, they would give 
us the higher amount but we had to later submit proof/receipts that we 
had made the replacement purchase. For what we accepted the depreciated 
value, no conditions attached to the money.

And let me back off a bit. How did you do the accounting for the loss 
for which this insurance payment is made?

Michael D Novack



_______________________________________________
gnucash-user mailing list
gnucash-user at gnucash.org
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
  


More information about the gnucash-user mailing list