1. Go to the Accounts command centre and click Accounts List.
2. Click the Expenses tab.
3. Click New.
4. Choose a new account number, preferably close to your existing Wages and Salaries account.
5. Enter the account name as Wages Paid on WorkCover or similar.
6. Click OK
7. Repeat steps 3 - 6 to create a new expense account called WorkCover Reimbursement.
   Here are our examples:
   
   
    

1. Go to Payroll command centre and click Payroll Categories.
2. Click the Wages tab then click New.
3. Enter the wages name as Wages Paid on WorkCover or similar.
4. Set the Type of Wages option to Salary.
5. Select the option Override Employee's Wage Expense Account.
6. Select the Wages Paid on WorkCover expense account created above.
   Here's our example:
   
7. Click Employee and select the employees to whom this category applies.
8. Click OK to save the new category.

1. Record the employee's pay as normal through the Process Payroll function.
2. Enter the amount against the Wages Paid on WorkCover wage category instead of the Base Hourly or Base Salary.
   Here's our example:
   

1. Go to the Banking command centre and click Receive Money.
2. Allocate the amount received from WorkCover to the WorkCover Reimbursement expense account.
3. Enter an appropriate Memo to explain what the payment is for.
   Here's our example:
   
4. Click Record.

If you have a negative balance after creating the expense account for reimbursement, this balance will offset against the Wages Paid on WorkCover expense account. This way, you can clearly see how much in wages are paid to the employee and how much you have been reimbursed by WorkCover and easily identify any short fall.