XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: Australia only
Risk Type: Tax Risk
Business Function: Compliance
Overview
This XBert checks bills that have a supplier document attached, such as a tax invoice or receipt. It looks for bills where the attached document clearly shows a GST amount, but that GST could not be matched to the tax recorded against the bill in your accounting software. When this happens, the GST you have claimed may be wrong, which puts your activity statement at risk.
What it does
XBert reads the document attached to a bill and pulls out the key figures, including the total amount and the GST amount shown on the page. It then checks whether the GST shown on the document matches the tax recorded on the bill itself. The aim is to make sure the GST you have entered actually agrees with the supplier's own tax invoice.
How it works
This XBert raises an alert when all of the following are true:
The bill has exactly one document attached.
XBert can clearly read both a total amount and a GST amount on that document.
The GST amount shown on the document could not be matched to the tax recorded on the bill in your ledger.
To avoid raising alerts that are not useful, it deliberately ignores certain bills. It skips draft, voided and deleted bills. It skips any bill dated before 1 January 2022. It also skips bills that have more than one attachment, and bills where a clear GST amount could not be read from the document. This keeps the focus on recent, active bills where a tax invoice plainly shows GST that does not line up with your records.
Example/Use Case
Priya runs a small cafe and uses XBert alongside her accounting software. Her supplier sends a tax invoice for $1,650.00, which clearly shows GST of $150.00. When the bill was entered, the GST was accidentally recorded as $0.00 because the line was coded as GST-free. XBert reads the attached tax invoice, sees the $150.00 of GST on the page, and notices it does not match the tax on the bill. It raises this XBert so Priya can correct the bill, claim the $150.00 GST credit she is entitled to, and keep her next activity statement accurate.
Accounting software
This XBert runs on Xero, MYOB and QuickBooks Online, as it relies on bills that have a supplier document attached.
Which countries it supports
This XBert is available for Australia only, because it focuses on GST shown on Australian supplier tax invoices.
Processes
Business area: Compliance. To resolve this XBert, work through the following steps:
Open the bill and view the attached supplier document side by side with the entered bill.
Read the GST amount shown on the supplier's tax invoice or receipt.
Compare that GST amount with the tax recorded against the bill in your accounting software.
If the bill is wrong, correct the tax treatment so the GST recorded matches the supplier document, and check the total still agrees.
If the bill is correct, confirm that the supplier document is the right one for this bill and that it has been read correctly.
If you are unsure whether GST should apply, check the supplier's ABN and GST registration, or ask your bookkeeper or accountant.
Once the bill and the GST agree with the supplier document, mark the XBert as resolved.