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If you need to reimburse your employees for purchases made for your company, you are entitled for a GST credit on the reimbursement.To set that up in AccountRight, you'll first need to setup a clearing account and payroll category for reimbursements, then change your Superannuation Exemption settings to accurately record your reimbursementsan employee for a business expense, you can include the reimbursement in the employee's pay. The tasks below explain how to set this up and process the pay.

If you're reimbursing an employee for something they've purchased for your business, we'll also show you how to record that purchase.

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title	1. Setup Set up a clearing account

Go to the

Set up a clearing account

Create a liability account to be used as a temporary holding account for the value of the employee purchase (Accounts command centre

and click

> Accounts List

.Click the

> Liability tab

.Click

> New

. The Edit Accounts window is displayed.In

). Make sure the Account Type

field, select

is set to Credit Card.

Enter the new number for this account, then press Tab.

Give the account an appropriate name, such as 'Employee Reimbursements'. The Edit Accounts window will look similar to the following example:

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Click OK

Here's our example:
Sample employee reimbursement liability account Image Added

This account will be linked to a new payroll wage category we'll create in the next task.

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title	2. Setup Set up a payroll wage category

Go to the

Set up a payroll wage category

Create a wage category which you'll use to reimburse the employee (Payroll command centre and click > Payroll Categories.Click the > Wages tab .
Click New. The Wages Information window is displayed.
Give the category an appropriate name, such as 'Employee Reimbursement'.
For the Type of Wages, select the Salary option.
Select the Override Employees' Wage Expense Account option and select the account created in Task 1.
Note: When you select this account, a warning message will appear saying that the account for wages expenses is usually an expense account. Disregard this message. Refer to the Wages Information window shown below:
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Click Exempt. The Wages Exemption window is displayed.
Select PAYG Withholding as shown below.
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Click OK.
Click Employee. The Linked Employees window appears.
Select the employee(s) who will be reimbursed.
Click OK to both the Linked Employees and Wages Information windows.

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<h2><i class="fa fa-comments"></i>  FAQs</h2><br>

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title	How do I add the items and expenses related to a job onto the customer’s invoice?

Click Reimburse to see a list of all the job purchases and expenses you have assigned a job number to, that can now be reimbursed on the sale.

UI Expand

title	How do I set a credit limit or put an account on hold?

You should enter the credit limit you've assigned in each customer's card. If you want to stop sales from being recorded for customers who have exceeded their credit limit, you can place them on hold.

> New)
- Select Salary for the Type of Wages.
- Choose the applicable ATO Reporting Category. If unsure, check with your accounting advisor or the ATO. Learn more about assigning ATO reporting categories for Single Touch Payroll reporting.
- Select the option Override Employees' Wages Expense Account.
- For the Override Account, select the liability account created above. If you can't find it, click the green Refresh button to ensure the new account is included in the list.
  Image Added
  Once selected, ignore the warning about the type of account chosen.
  Here's our example:
  Image Added
Assign this wages category to the employee who's being reimbursed (click Employee and select the employee).
Exempt the wages category from tax calculations (click Exempt and choose PAYG Withholding).

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title	3. Exempt the reimbursement from superannuation

Exempt the reimbursement from superannuation

To ensure the reimbursement wages category isn't included in the superannuation calculation:

Go to the Payroll command centre and click Payroll Categories.
Click the Superannuation tab.
Click the zoom arrow next to the Superannuation Guarantee category. The Superannuation Information window is displayed.
Click Exempt. The Superannuation Exemptions window is displayed.
Select the Employee Reimbursement wages category created above.
Image Added
Click OK to both the Superannuation Exemptions and Superannuation Information windows.

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title	4. Reimburse the employee

Reimburse the employee

When you process payroll, enter the reimbursement amount on the employee's pay.

Employee's pay with reimbursement Image Added

This will:

reimburse the employee for their purchase, and
put the amount into the temporary holding account you created earlier. This will be cleared in the next task.

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title	5. Record the purchase

Record the purchase

The last thing to do is record a Spend Money transaction to account for the purchase. This achieves the following:

the purchase can be allocated to the applicable expense account
the applicable tax code can be assigned based on what was purchased and how it needs to be accounted for, and
the Employee Reimbursement Liability account is returned to a zero balance.

If you're not sure which tax code to use, check with your accounting advisor.

Here's our example:

Spend money window with pay from account set to employee reimbursement account Image Added

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Add a customer

Printing, emailing and saving forms

Changing or deleting a transaction

Reimbursable expenses

Credit limits

Credit holds

Recurring transactions

Sales and purchases information

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Create detail and header accounts

Processing your payroll

Spending and receiving money

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Key

Set up a clearing account

Set up a payroll wage category

Exempt the reimbursement from superannuation

Reimburse the employee

Record the purchase

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