XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: South Africa only
Risk Type: Cash Flow Risk
Business Function: Sales
Overview
The "Invoice raised with a cancelled customer" XBert checks the customers you invoice against South Africa's Companies and Intellectual Property Commission (CIPC) register. It warns you when you have raised a sales invoice for a customer whose Enterprise Number has been cancelled or deregistered, so you can act before the debt becomes hard to recover.
What it does
XBert looks at your sales invoices and matches each customer to their registered Enterprise Number on the CIPC register. It then compares the registration status and the date the company ceased trading against the date you raised the invoice, and flags any invoice sent to a customer that was no longer a registered business.
How it works
XBert finds the customer's Enterprise Number, either from the details saved on their contact record or from the number most recently seen for that business, and looks it up on the CIPC register.
It raises this alert only when all of the following are true:
The customer's CIPC status is something other than active, open or in business (in other words, the company has been cancelled or deregistered).
A date of cessation is recorded for the company on CIPC.
The invoice was dated on or after that date of cessation.
The invoice is in draft, submitted or authorised status.
To avoid false alarms, XBert deliberately ignores some cases. It does not flag voided or deleted invoices. It does not flag a customer simply because no CIPC data could be found for them. And if no cessation date is recorded, it will not raise the alert, because there is no way to prove the invoice came after the company closed.
Example/Use Case
Thandi runs a stationery supplier. On 12 May she raises an invoice for R4,850 to Dave's Plumbing for a bulk office order. What Thandi does not realise is that Dave's Plumbing was deregistered at CIPC on 30 April, two weeks earlier. XBert matches the customer's Enterprise Number, sees the cancelled status and the cessation date, and flags the invoice because it was raised after the company ceased trading. Thandi follows up with Dave directly, confirms the business has wound up, and reissues the invoice to Dave personally so she still gets paid before the money is lost.
Accounting software
Xero, MYOB and QuickBooks Online.
Which countries it supports
South Africa only.
Processes
This XBert supports Sales (Accounts Receivable) and helps keep your customer records accurate and your receivables collectable.
To resolve the alert:
Open the flagged invoice and review the customer's details and Enterprise Number.
Confirm the Enterprise Number and its status on the CIPC eServices website.
If the number is wrong or out of date, contact your customer for the correct details and update their contact record in your accounting software.
If the customer has genuinely ceased trading, stop issuing further invoices to that entity and reissue any outstanding invoices to the correct party (for example a successor business or the individual responsible for the debt).
Where the debt cannot be recovered, follow your usual process for writing it off so your accounts stay accurate.
Once you have corrected the records or resolved the debt, mark the XBert as resolved.
Keeping customer business records accurate reduces bad debt, improves audit readiness and supports your VAT and other reporting obligations.