tracking returns and reimbursements to customers

[kspitfire]

Hi,

My company reimburses customers for items that were either damaged/lost in shipping or items they've decided they don't want. We do receive insurance payments for the damaged or lost items and I wanted to try to track all this in Quickbooks somehow.

I've considered setting up a Reimbursement account as a Bank type and just routing all the cash flow for these items through that first, but is there a more "built-in" way in Quickbooks? Should I set up an Expense account for it instead? Would there be any drawbacks with either? We would like to be able to see how many returns there are as well as just track that we're receiving all the insurance money, since it takes the insurance company quite a while to pay us.

Thanks in advance!