XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: New Zealand only
Risk Type: Cash Flow Risk
Business Function: Sales
Overview
The "Invoice raised to a customer in liquidation" XBert checks whether you have an open invoice owing from a customer whose business is currently in an insolvency process on the New Zealand Business Number (NZBN) register. Money owed to you by an insolvent customer is at risk, so it matters that you spot it early, stop supplying on credit, and lodge a creditor claim.
What it does
XBert compares your open sales invoices against the official NZBN register held by the Companies Office. It looks for any open invoice raised to a customer that is recorded as being under an insolvency process. To do this it scans invoices that are:
In an open state (draft, submitted or authorised)
Raised to a customer that XBert has matched, with high confidence, to a business on the NZBN register
Held against a customer whose current registration status is in liquidation, in receivership, in statutory administration or in voluntary administration
How it works
XBert keeps an eye on NZBN registration data and flags an open invoice when the customer it is raised to is currently insolvent. Because the customer is a present risk no matter when the invoice was raised, the alert fires on any open invoice held against that customer, so you can act before extending more credit. To avoid false alarms, XBert only flags a customer when it can match them to the register with high confidence using their registered NZBN or GST number. It deliberately ignores name-only matches, fully paid or closed invoices, and customers that have simply been removed or struck off the register rather than placed into an insolvency process.
Example / Use case
Bill owns a pizza shop and caters for a regular corporate customer on credit. The customer is placed in liquidation with a $6,000 invoice still outstanding. XBert flags the invoice so Bill stops supplying on credit and lodges a creditor claim with the appointed liquidator, instead of continuing to deliver and increasing a balance he may never recover.
Accounting software
Xero, MYOB, QuickBooks Online.
Which countries it supports
New Zealand only.
Processes
This XBert falls under the Sales (AR) business area. To action it:
Confirm the customer's current status on the NZ Companies Register / NZBN register.
Pause any further supply to the customer on credit.
Lodge a creditor claim with the appointed liquidator or receiver to register what you are owed.
Follow up the outstanding amount promptly and review the customer's credit terms.
Once the invoice has been actioned, mark the XBert as resolved.