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Bill Raised With an Unknown Supplier

Marsha Galicia avatar
Written by Marsha Galicia
Updated over 3 weeks ago

XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: AU only
Risk Type: Tax Risk
Business Function: Purchases

Overview

The "Bill Raised With an Unknown Supplier" XBert identifies bills that have been raised for suppliers who could not be matched to a registered entity on the Australian Business Register (ABR). This helps ensure that the businesses you’re dealing with are properly registered, reducing tax risks and improving the accuracy of your supplier data.

What it does

This XBert checks recent bills in your accounting software to determine whether the supplier has been successfully matched to a business on the ABR. If no match is found — and the reason is not due to cancellation or invalidity — XBert triggers an alert so you can verify the supplier’s legitimacy and their ability to charge GST.

How it works

XBert reviews Australian bills raised in the past year with a status of DRAFT, SUBMITTED, or AUTHORISED. It checks for a valid ABN match through automated matching against the ABR. If no match is found — and the bill includes at least $7.50 of tax (the threshold at which a receipt is required to claim GST) — an alert is generated. This ensures you're not claiming GST from potentially unregistered businesses.

Example/Use Case

Bill runs a pizza shop and buys a new oven from a supplier for $6,000. XBert alerts him that the supplier could not be matched to any registered business on the ABR. After checking, Bill realises the supplier either gave him outdated details or is not a registered business. Later, the ATO questions Bill’s GST claim, and he is required to pay $2,820 in withholding tax. If Bill had verified the supplier’s ABN and legitimacy before the purchase, he could have avoided the tax exposure altogether.

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 is designed to help validate supplier identity and protect against compliance risks. To resolve this issue:

  • Ask your supplier for their current ABN and verify it using the ABN Lookup service.

  • If their ABN has changed due to business restructuring, mergers, or acquisitions, update your supplier’s contact details in your accounting software accordingly.

  • Review and amend the bill as needed, especially if GST should or should not be applied based on the updated supplier information.

  • Avoid purchasing from suppliers that cannot be validated through the ABR unless you are fully aware of the tax implications.

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