One of my clients employees was injured, the employer paid the medical expenses.
The employEE will claim through the compensation fund, i would like to know how to bring the medical expenses into the books.
The medical expenses on one side and benefit to the employee on the other, and then the reversal once it is paid back to employER.
Also the vat journals that will affect this transaction.
Create a fringe benefit for the employee, then there is deemed output.
The medical expenses have already been paid so there will be Vat receivable.
Do i create a loan to the employee and cancel out once the compensation com is paid back to employER from employEE?