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Hi Family, I would like to ask, how do I dispose of an asset of vehicle type that has been written off and the period I want to dispose in was 11-2022? The vehicle received some funds from the insurance, more than what the car is worth now. 

I would like to ask what figures goes to the Proceeds amount field as the current cost of the asset has changed. Thank you in advance.

 

Hello,

Disclaimer: I am not a CPA. Please check with your CPA to verify the accounts and periods to adjust.

  1. If the vehicle became unusable last Nov. and you have later received a payment from  insurance:

Write off the vehicle with $0 proceeds in November 2022.

In the month when insurance reimbursement was received, enter the cash payment via GL Journal Transactions. Use a debit to increase cash and a credit to an income account such as Other Income. Or, create a new Income account called Insurance Proceeds, and credit the Insurance Proceeds account.

  1. If the proceeds were received in November, in the same month when the vehicle became unusable, then enter the Insurance proceeds in Proceeds Amount of Disposal Parameters window and enter cash account where insurance money was deposited in the Proceeds account.

I think insurance proceeds received after the vehicle is ‘deceased’ will not impact the Cost of the vehicle.

 

Laura

Thank you so much @Laura02. Your 2nd option was what I had in mind, you just confirmed for me. I will definitely test on the 1st one as well. Appreciated!!

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