XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: AU only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Bill Raised With Cancelled Supplier" XBert checks for unpaid bills issued to suppliers whose Australian Business Numbers (ABNs) are marked as cancelled on the Australian Business Register (ABR). This ensures you’re only dealing with legitimate and registered suppliers, reducing compliance risk and improving data integrity in your accounts payable records.
What it does
This XBert scans supplier ABNs recorded in your accounting software and compares them with the ABR. It identifies when a bill has been issued to a supplier with a cancelled ABN, alerting you to potential tax compliance issues and the risk of transacting with unregistered businesses.
How it works
XBert monitors unpaid bills created after your organisation was onboarded to XBert and after the ABN was marked as cancelled. If the supplier’s ABN is recorded and matched to a cancelled business on the ABR, XBert triggers an alert so you can review and resolve the discrepancy before processing any payments.
Example/Use Case
Bill owns a pizza shop and recently bought a commercial oven from a supplier for $6,000. A few weeks later, XBert alerts him that the supplier’s ABN has been cancelled. Bill investigates and discovers that the supplier was deregistered prior to the purchase. This puts him at risk of needing to withhold 47% tax from the payment or facing issues with GST claims. If Bill had verified the ABN beforehand, he could have avoided the tax exposure and selected a compliant supplier.
Accounting software
All Australian-compatible accounting software (e.g., Xero, MYOB, QuickBooks Online).
Which countries it supports
Australia only.
Processes
This alert falls under the ‘Purchases (AP)’ category and helps mitigate tax risk from cancelled suppliers. To resolve this issue:
Use the ABN Lookup service to check the supplier’s registration status.
If the ABN is incorrect or cancelled, contact the supplier for updated details.
Update the supplier's contact information and ABN in your accounting software.
Review the bill and amend GST amounts if needed.
Avoid transacting with cancelled suppliers unless justified, and be aware of any withholding tax implications.