XBert Type: Standard
Accounting Software: Xero, MYOB
Country Restriction: the United Kingdom only
Risk Type: Tax Risk
Business Function: Purchases
Overview
This XBert reads the supplier invoice or bill you have attached to a purchase and checks the VAT number printed on that document against the VAT number you have saved for the supplier in your accounting software. If the two do not match, it lets you know. Getting the supplier's VAT number right matters because it is what supports the VAT you reclaim from HMRC.
What it does
When you attach a document to a bill, XBert looks at the VAT number shown on that attachment and compares it with the VAT number recorded against the supplier's contact in your accounting software. It raises an alert when the VAT number on the attached document is different from the one held on the supplier record, so you can confirm which one is correct before the bill is paid or the VAT is claimed.
How it works
XBert only looks at bills where a supplier VAT number is actually recorded, then compares it to the VAT number found on the attached document. It raises an alert when the attachment shows a VAT number that does not match the supplier's recorded number.
To keep alerts relevant, XBert deliberately ignores a number of situations:
It only considers recently added attachments (added within roughly the last three months).
It skips bills that have been voided or deleted.
If the VAT number on the attachment already matches the supplier's recorded number, no alert is raised.
If a single bill has attachments showing more than one different VAT number, that situation is handled by a separate XBert and is not flagged here.
If the same supplier-and-attachment VAT combination appears across several bills, that pattern is handled by a separate XBert instead.
If every document attached to the bill is clearly something other than the supplier's invoice (for example a receipt, a statement, a remittance, a quote, a draft or a business card), XBert does not flag it, because a VAT number on those documents is not expected to match the supplier.
Example/Use Case
James runs a construction business and attaches a scanned supplier invoice to a bill in Xero. The bill is for glass supplied by Palmers Windows, and in Xero this supplier's contact shows the VAT number GB123761282. However, the attached invoice from Palmers Windows shows the VAT number GB345982333 next to a charge of £4,250. XBert flags the mismatch. When James checks, he finds the VAT number saved against the Palmers Windows contact was entered incorrectly when the supplier was first set up. He updates the contact with the correct VAT number from the invoice. Catching this protects his VAT reclaim and avoids questions from HMRC if the records were ever reviewed.
Accounting software
This XBert runs on UK-compatible accounting software, including Xero and MYOB.
Which countries it supports
The United Kingdom only.
Processes
This alert sits under Purchases and helps keep your accounts payable accurate. To resolve it:
Open the attached document and confirm the VAT number printed on the supplier's invoice.
Compare it with the VAT number saved against the supplier's contact in your accounting software.
Work out which number is correct. If the supplier record is wrong, update the contact with the correct VAT number. If the attached document is the wrong one (for example the wrong invoice was scanned), replace it with the correct document.
If you are unsure which VAT number is genuine, contact the supplier to confirm their registered VAT number, and check it on the HMRC VAT number checker if needed.
Once the supplier's VAT number is correct, mark the XBert as resolved.