Canada Damaged goods from transport company insurance payment

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Hello,

I have a claim from damaged goods that were delivered for our company.

To save time, I gave the client who recieved the goods a discount on there invoice. This was taken care of. The invocie is paid off, and the balance is $0.

But, I got a payment back for the damaged goods from the insurance company. I can deposit it to my bank account, but I am not sure hwo to declare where it came fron. I have never gotten a payback like this form an insurance company.

It is income, but indirectly from the lost money on the sale.

Do I make a separate account in the chart of accounts? But, do I want to make a new account for somethign that might never happen again, or might happen very rarely?

Thanks

Joseph
 

Steve-LevelUp

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Hi

I would record this as revenue. In a perfect world, the discount you could have offered the client would have been equal to the refund you received. So, you pro-offered the client a rebate, and the insurance company made you whole.

So, I would record this as revenue, with the insurance company as a client, charging to the same revenue line where the discount was applied.

I hope that helps.

Regards.
Steve
 

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