XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: Canada only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Bill Raised with a Cancelled Supplier" XBert checks for bills that have not yet been paid where the supplier's business is no longer registered on Canada's official business registries. Paying or claiming GST/HST against a deregistered supplier can create tax and compliance problems, so it pays to catch these before money goes out the door.
What it does
This XBert looks at the supplier on each bill and compares that supplier's recorded business number against Canada's official business registries. If the registry shows the supplier's business has been cancelled (deregistered), and the bill was dated after that cancellation took effect, XBert raises an alert so you can review the bill before paying it or claiming the GST/HST.
How it works
XBert raises this alert only when all of the following are true:
The bill has not yet been paid. XBert reviews bills that are in draft, submitted or approved (awaiting payment). Voided, deleted and already-paid bills are ignored.
XBert can confidently identify the supplier and match them to a registered business number. This number may be the one recorded on the supplier's contact record, or the most recent one seen on that supplier's earlier bills.
Canada's business registries show that business as cancelled (any status other than active or open).
The cancellation took effect on or before the date of the bill. In other words, the supplier was already deregistered when the bill was raised.
XBert deliberately ignores cases where it cannot be sure. If the bill was dated before the supplier was cancelled (the supplier was still active at the time), if the registry does not show a clear cancellation date, or if XBert cannot confidently match the supplier to a registered business, no alert is raised. This keeps the alert focused on genuine issues rather than guesses.
Example / Use Case
Priya runs a cafe in Toronto and receives a $4,500 bill from a refrigeration supplier for a new walk-in cooler. She enters the bill ready for approval. XBert checks the supplier's business number against Canada's business registries and finds the business was deregistered three months earlier, before the bill was dated.
Because the supplier is no longer a registered business, the GST/HST charged on the bill may not be valid to claim, and Priya could face questions from the Canada Revenue Agency if she records and pays it as is. Seeing the XBert alert, she contacts the supplier, confirms the registration has lapsed, and holds the payment until the supplier provides valid current details, avoiding a disallowed GST/HST claim and a later correction.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
Canada only.
Processes
This alert supports Purchases (Accounts Payable) and helps make sure you are dealing with a properly registered supplier before you pay a bill or claim the GST/HST.
To resolve this alert:
Open the flagged bill and the supplier's contact record.
Check the supplier's business number on Canada's business registries to confirm whether it is genuinely cancelled.
If the supplier has simply changed business numbers or re-registered, ask them for their current valid details and update the supplier record.
If the business is genuinely deregistered, hold payment and confirm whether the GST/HST on the bill can still be claimed before recording it.
Adjust the bill or the GST/HST treatment if the supplier's status means it is no longer correct.
Once the bill and supplier details are corrected, mark the XBert as resolved.
As a rule, avoid paying or claiming tax against suppliers that are no longer legally registered until you have confirmed their current details and the tax implications.