XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: ZA only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The “Payment to a Cancelled Supplier” XBert identifies payments made to suppliers whose business registration has been cancelled or deregistered with the Companies and Intellectual Property Commission (CIPC) in South Africa. This ensures your payment records are aligned with legitimate, active businesses to reduce compliance risk with SARS.
What it does
XBert reviews authorised payments and bank transactions linked to suppliers whose Enterprise numbers have been matched to deregistered businesses on the CIPC register. If such payments occurred after the supplier’s deregistration date, an alert is raised so you can take corrective action.
How it works
XBert checks:
Authorised bill payments and authorised bank transactions created after both your XBert subscription began and the supplier’s deregistration date.
Suppliers must have an Enterprise number entered in your accounting software that matches a deregistered business on the CIPC database.
If any transactions meet these conditions, XBert calculates the total value of the payments made and triggers this alert.
Example / Use Case
Bill owns a pizza shop and purchases a commercial oven from a supplier for R6,000. Unknown to him, the supplier was deregistered months ago. Later, when SARS audits his records, they flag this transaction, and Bill is required to pay R2,820 in withholding tax. Had Bill known the supplier’s registration status, he could have either verified the Enterprise number or avoided the transaction altogether.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
South Africa only
Processes
This alert is part of the Purchases & Payables (AP) process and helps ensure accurate supplier data and payment compliance.
To resolve this issue:
Verify the supplier’s Enterprise number using the CIPC website.
If necessary, contact the supplier to request updated business details.
Once confirmed, update the Enterprise number in your accounting system.
Review any related bills or payments to ensure the VAT treatment is still valid. If the business is no longer VAT registered, you may need to amend the VAT settings.
Avoid making future payments to suppliers whose registration status is cancelled unless there is a valid business reason and you are aware of the potential tax implications.
By addressing these discrepancies promptly, you reduce the risk of financial penalties and maintain cleaner, more compliant bookkeeping records.