What chart of account should I put insurance proceeds to?

The money should offset what you paid to repair the damaged equipment. I'd put it in the same account where you paid for the repair. You will want to make a memo about it being insurance proceeds. You can deposit the check manually by going to Make Deposit and manually entering the check on your deposit. Put the money in the Expense account you used or will use to pay for the repair. The insurance should reduce the amount your paid for the repairs...this expense account should be zero unless you paid more for the repairs than the insurance paid.

I am assuming that you created an Expense Account in your Chart of Accounts to use to repair the damaged equipment.

What if the insurance proceeds are received just prior to the financial year end but the repairs only effected after the year end? At year end, would I transfer the "proceeds" to a liability (balance sheet) account or would it just remain as a credit in the expense account?

Interesting answer from Optimist and it made perfect sense, however, I was wondering why, when I went through the interview process for one of my QuickBooks company files for real estate management, it automatically established an account in OTHER INCOME called Insurance Proceeds Received.

And it just so happens recently there is an active insurance claim on a property. I was going to set up a sub-account s under this called: "Proceeds Received" and the other Called "Repair Expenses" so the parent account would end up showing an over/under balance left.