After you set recovery reserves, you can account for the recovery amount in the Transactions section of Accounting. Recovered funds reduce the amount of Loss.
To create a recovery receipt, open the desired claim and:
- Select Accounting in the Claims menu.
- Navigate to and select the Transactions collapsible box. The Transactions box will open.
- Select + Add an Entry next to Recoveries. The Recovery dialog box will open.
- Ensure the Date boxes show the correct date of the transaction. If not, edit the Date boxes using the MM/DD/YYYY format.
- In the Recovery Amount box, type the amount of the transaction.
- From the Category dropdown list, select the correct type of recovery that occurred based on the explanations of Reinsurance Recovery, Subrogation Recovery, and Salvage Recovery in Set recovery reserves – step 9.
- In the Description box, type a brief description of the recovery. For example, if you sold undamaged cabinets from a flood for $500.00, this would be a Salvage Recovery. In the Description box, you could write, Sold cabinets.
- When you’re finished, select Done.
When you complete the receipt for a recovery, the following will happen:
- The Recovery table in the Overview section will update the Received to Date column and the Reserves section. The Received to Date column will display all recovery payments received to date. The Reserve column will show the remaining Recovery Reserve after the transaction is recorded.
- The Recovery History section will populate with the payment information and will update the Amount Received, Change in Reserve, Total Received, and Total Reserves columns.
- The Recovery will populate in the Recoveries section of Transactions.