XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: ZA only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Expenses with a Cancelled Business" XBert identifies suppliers in your accounting records whose Enterprise Number is no longer valid according to the Companies and Intellectual Property Commission (CIPC). This helps ensure your business isn't transacting with deregistered entities and protects you from non-compliant VAT claims or audit risk.
What it does
This XBert checks the Enterprise Numbers listed against supplier contact records in your accounting software. If the number is cancelled, deregistered, or missing from the CIPC registry, and there are expense journal entries involving the supplier, an alert is raised.
How it works
For South African tenants, XBert checks:
If a supplier has an Enterprise Number entered in your accounting software.
If that number matches a deregistered or non-existent record in the CIPC database.
If there are expense transactions logged against this supplier.
When these conditions are met, XBert generates a warning to highlight the potential risk of dealing with a cancelled business.
Example / Use Case
Bill owns a pizza shop in Johannesburg. He recently purchased a new commercial oven for R6,000 from a supplier he has used in the past. Unknown to him, the supplier’s Enterprise Number was deregistered six months ago.
Later, during a VAT return review, SARS questions the legitimacy of the expense. Because the supplier was not legally registered at the time of the transaction, Bill is required to pay R2,700 in withholding tax. This could have been avoided if the supplier’s registration had been verified before payment.
XBert’s alert would have warned Bill of the issue in advance, giving him a chance to clarify or find a compliant supplier before proceeding with the purchase.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
South Africa
Processes
This alert belongs to the Purchases & Payables (AP) process group and supports bookkeeping accuracy and tax compliance. To resolve the alert:
Select RESOLVE NOW to access the contact record in your accounting software.
Verify the supplier’s Enterprise Number using the CIPC Website.
If the Enterprise Number is incorrect or inactive, contact the supplier to obtain the correct information.
Once confirmed, update your supplier’s record in your accounting software.
If the supplier is unregistered, avoid future transactions until the issue is resolved or justified.
It’s important to ensure all expense-related suppliers are correctly registered and active to avoid complications during audits or tax assessments.