We have received money for a damaged wooden kitchen worktop caused by a leaking tap. How do I record this 'money received' income? We have not yet spent the money on the repairs. Do I set up a new Income account say 'insurance 2018'

MANY THANKS

Hello Mark,

In the Money Received window set the Type to 'General Payment' and the From Account to match the expense account you expect to allocate the repairs to (eg. 'Maintenance Costs'). This will reduce the balance of that expense account which offsets the total cost. If the amount you receive from the insurance company is larger than the cost of repairs then the net change to this expense account will be negative.

Regards,

I do not post as income. I post against the expenses of the replacement.
So Claimed on tools, money received goes to tools to cover the replacement of those tools and the money then paid for the tools goes to same account.

If you have lots of claims, then maybe worth setting up a new expense account for insurance claims and post receipt and payment to the same so easily identified...I would do that if there was a very large payout with multiple items to purchase.