INSURANCE CLAIMS

System

Hi <BR><BR>I hope that somebody can help me but I am a totally loss with regards to the posting of an insurance claim.<BR><BR>Basically, we have claimed for a new laptop for which we have to dispose of the broken item and replace it with a new one claimed on the insurance.<BR><BR>I have posted the disposal into the accounts with no problems.<BR><BR>However, we have received an invoice from the insurance company showing the following:-<BR><BR>Replacement laptop 1332.10<BR>Collection and Delivery 13.00<BR>Inspection Fee 45.00<BR>Less paid by Insurance company (1340.10)<BR><BR>Net amount payable 50.00 (excess charge)<BR>VAT 243.27<BR>Total Payable 293.27<BR><BR>I have debited the replacement laptop into fixed assets and credited insurance claim (additional income), credited insurance claim with excess charge. But I am not sure how to post the Collection & Delivery and inspection fees. I assume that I credit insurance claim again (which would then show the income as £1340.10, same as amount paid by insurance company), but what do I debit???? I can't debit overheads as we have not actually incurred the cost. PLEASE PLEASE HELP!!!!!!!!!!

System

INSURANCE CLAIMS

In my firm we charge all costs relative to the initial purchase of a fixed asset to Fixed Assets. This would include all delivery, inspection and set up costs. I would therefore charge the £50 excess to this account. The journal would therefore be like this:<BR>Debit Fixed Assets £1390.10 (1332.10 + 13.00 + 45.00)<BR>Debit Vat £243.27<BR>Total Debits £1633.37<BR><BR>Credit Additional Income £1340.10<BR>Credit Bank (payment) £293.27 ( Vat 243.27 +XS £50.00)<BR>Total credits £1633.37<BR><BR>You might want to check what criteria you use when charging the Fixed Asset account. If all costs are entered like us the above journal should be fine, either your line manager or Accountants should have this information.<BR>Hope this helps,<BR>Aine

System

INSURANCE CLAIMS

Thanks<BR><BR>