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Created by AgExpert Support
Created on May 29, 2018

Disqus Agexpert Accounting Questions Archive

How do you record the deposit of capital damage on a pipeline?

  • ADMIN RESPONSE
    Feb 10, 2025

    Hi Ken!

    Are the damages being paid on the pipeline itself, or on the surrounding land? That will tell me what this entry would look like. Also, is the pipeline owned by you, or is it owned by someone else?

    Generally when we see pipeline damage payments is a surface lease and the damages are paid out on the land. In that case, you would do a deposit to the bank account, and apply it against your land. So, your line item would be an A-, and you could select your land account to post against.

    If it is not the land, and the pipeline itself, then let me know and I can adjust my answer accordingly.

    I hope this helps!

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