Step 4 - Control Accounts - Claim Deductible Clearing
This General Ledger Account is used as a clearing account for the any deductibles payable on Customer Order Third Party claims ie Insurance claim deductible / excess.
This account type is typically set up as a Current Liability and the usual balance depends on which side of the two transactions have cleared first
This Claim Deductible Clearing General Ledger Account is credited whenever the Customer is invoiced for the deductible
This is the Customer Invoice for the Deductible:
This is the above transaction shown in the Claim Deductible Clearing General Ledger Account:
When the deductible is used to reduce the Invoice to the Third Party vendor ie Insurance excess payable by the Customer, then a clearing entry is made to the Claim Deductible General General Ledger Account
This is the Invoice to the Third Party Vendor showing the reduction of the deductible:
This is the above transaction shown in the Claim Deductible Clearing General Ledger Account :
**Note that the Third Party Invoice cleared out the Claim Deductible Clearing General Ledger Account for the deductible paid by the Customer
Accounting entries to this General Ledger Account should never be made directly from the accounting application as its balance should always match with the activities in Blackpurl.
For further information about Third Party Customer Orders, please review our article - Service Job - Understanding the options for "Who is paying for the job" (ie Third Party - Insurance & Warranty Claims)