Why it matters for builders
- If a subcontractor does not quote an ABN on a business invoice, you generally must withhold tax at the top rate from the payment unless an exception applies. That is a cash and compliance risk on every new trade.
- Businesses with 50% or more income from building and construction services must lodge a TPAR, so subcontractor details have to be accurate through the year.
For builders in Dynamics 365 Finance
- Turn on the feature Vendor bank account change proposal workflow. Then set Bank account approval (create) and Bank account approval (update) on the Vendor bank account approval FastTab of Accounts payable parameters.
- Pick the fields that need approval by ticking IsEnabled in the grid. Only changes to ticked fields go to the workflow.
- Set Data entity behavior (update) to Reject changes or Create change proposals so an import cannot change protected bank fields without approval.
- Under Vendor approval set Enable vendor approvals to Yes and build a Proposed vendor changes workflow. This covers other vendor fields.
- A new vendor bank account is not available for use until an approver approves it. After you save a new record choose Workflow, then Submit.
- When you edit an existing bank account, each field that needs approval is marked (requires approval). If you changed one, the Action Pane shows Proposed changes and Workflow buttons. The old value stays in use until approval.
- Build the approval in Accounts payable workflows from the template Workflow approval for proposed vendor change. The vendor approval workflow uses a Proposed vendor changes workflow with the same approval element.
What Dynamics 365 Finance does on its own
Vendor bank account change approval, vendor change approval and duplicate number rejection.
- No ABN Lookup
Data entity import can reject changes or create change proposals.
What you need and the setup steps: Invoice fraud checks for Dynamics 365 Finance.
Example
A new bank account arrives by email for Example Plastering Pty Ltd just before a $19,800 progress claim (including GST) is due. The ABN on the invoice is not active on the ABN Lookup.
| Line | Amount | What the check finds |
|---|---|---|
| Progress claim 2, plastering levels 1 to 3 | $18,000.00 | Amount matches the subcontract order, so amount is fine |
| GST | $1,800.00 | Charged by a supplier whose ABN shows as cancelled |
| Bank details changed since last claim | Different from the account on file |
The claim is held. Someone phones the number already on file to confirm the new account, and the ABN issue goes back to the subcontractor before any money moves.
Common mistakes
- Accepting a bank change from an email reply without a phone check on a known number.
- Setting up a new subcontractor from a claim form without checking their ABN and licence.
Step-by-step guides for Dynamics 365 Finance
- How to control vendor bank detail changes in Dynamics 365 Finance
- How to set up a new vendor safely in Dynamics 365 Finance
- How to check a vendor's ABN in Dynamics 365 Finance
- How to stop paying a vendor invoice twice in Dynamics 365 Finance
What Pulsify adds
Pulsify flags changed bank details, an invalid or missing tax ID and emails that fail sender checks. Pulsify connects to Dynamics 365 Finance. We set up the connection for you. More about invoice fraud checks in Pulsify or Pulsify for builders.
More help
- Invoice fraud checks in IFS Cloud for builders
- Invoice fraud checks in MYOB Acumatica for builders
- Invoice fraud checks in Sage 300 CRE for builders
- Duplicate invoice checks in Dynamics 365 Finance for builders
- PO matching in Dynamics 365 Finance for builders
- Invoice approvals in Dynamics 365 Finance for builders
- Line item coding in Dynamics 365 Finance for builders
- All Dynamics 365 Finance how-to guides
Sources
Last checked 2026-10-19.
- learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/vendor-bank-account-workflow
- learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/vendor-workflow
- www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/payg-withholding/payments-you-need-to-withhold-from/withholding-from-suppliers
- www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/reports-and-returns/taxable-payments-annual-report/work-out-if-you-need-to-lodge-a-tpar/building-and-construction-services
Also confirmed by
Common questions
How does Finance guard against a changed subcontractor bank account?
It can require workflow approval for new bank accounts and for edits to the fields you choose. Imports can be set to reject changes or create change proposals, so a data load cannot quietly change protected fields. Phone the supplier on a known number before you approve.
What if a subcontractor leaves off their ABN?
You generally must withhold tax at the top rate from the payment unless an exception applies. Ask for the ABN before you approve. Keep the record in case the ATO asks.
Does Finance approve supplier bank account changes?
Yes. Turn on the vendor bank account change proposal feature and set the protected fields. Changes wait for workflow approval. The supplier callback is still a manual step.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles invoice fraud checks in Dynamics 365 Finance for builders.