XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: ZA only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Bill Raised with a Cancelled Supplier" XBert checks for unpaid bills created against suppliers that have been deregistered on the South African Companies and Intellectual Property Commission (CIPC). This ensures you are not trading with invalid suppliers and helps maintain compliance with SARS (South African Revenue Service) requirements.
What it does
This XBert reviews supplier bills and cross-checks their registered Enterprise Number with CIPC records. If a match is found and the status of the business is deregistered or dissolved, the XBert alert is raised for review. This prevents your business from incorrectly processing expenses to a non-existent supplier.
How it works
XBert scans unpaid supplier bills that meet all the following criteria:
The bill is unpaid.
The supplier’s Enterprise Number is entered in your accounting software.
The Enterprise Number is matched to a CIPC record with a deregistered status.
The bill was created after both your XBert connection date and the deregistration date of the supplier.
If all conditions are met, XBert will flag the bill and recommend you review the supplier and transaction.
Example / Use Case
Bill owns a pizza shop and recently purchased a new oven for R6,000 from a local supplier. He entered the bill and paid the supplier, unaware that the supplier’s business had been deregistered with the CIPC. Months later, SARS questioned the legitimacy of the transaction. Because the supplier was no longer an active business, Bill was forced to pay R2,820 in withholding tax out of his own pocket.
If Bill had reviewed the XBert alert, he could have verified the supplier’s registration status before making the payment and avoided this costly error.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
South Africa
Processes
This alert supports accuracy in the Purchases (Accounts Payable) bookkeeping process.
To resolve the alert:
Click RESOLVE NOW in XBert to open the bill and supplier record.
Verify the supplier’s Enterprise Number using the CIPC website.
If the business is no longer active, contact your supplier for updated business details.
Update your accounting records with the correct Enterprise Number.
If necessary, revise the bill to reflect changes in VAT status or supplier name.
Only deal with suppliers that are actively registered unless you fully understand the risks involved and have taken proper steps to mitigate them. This ensures clean records and tax compliance for your business.