QB Issue Resolution:

Create an expense account called legal settlement expense, and be sure to point that expense account out to the tax accountant when the time comes

Resolution for Issue 'Wondered if someone can help me with this transaction. A customer paid an amount for which he had been invoiced for – say £4000 for a service, which he subsequently never received (totally the fault of the company I work for). The customer has now taken this to court and we have agreed to pay him out of court £5000 plus expenses, plus court fees etc, which now comes to £6000. How do I record this in QBO,' available: Yes (Solved).
Source: Intuit Community forum.

Wondered if someone can help me with this transaction. A customer paid an amount for which he had been invoiced for – say £4000 for a service, which he subsequently never received (totally the fault of the company I work for). The customer has now taken this to court and we have agreed to pay him out of court £5000 plus expenses, plus court fees etc, which now comes to £6000. How do I record this in QBO,: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for Expense Account
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