Insurance Audit Refund

by JM
(Englewood, CO)

We are getting a refund from our recent GL/Auto insurance audit. We have asked that they apply it to this year's premiums, which they did this month. How do I post this as I have already set up my recurring payment and monthly journal entry to reflect the original premium balance?

Hello JM,

Thank you for your inquiry.

If they applied the refund all to one months payment, you can go ahead and just post the credit transaction to the same month. Enter the credit memo and apply the credit to your already set up recurring payment and monthly journal entry that reflects the original premium balance.

If they applied the refund to each payment throughout the year, you will need to go ahead and adjust your monthly recurring payment to match the new amounts.