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 IFS Cloud
- Only pay against certified work. A subcontract invoice is matched to a payment certificate, and the certificate must be certified before it can be matched. That puts the contractor's certification step between a supplier's claim and the payment.
- Put the ABN on the supplier in Document Tax Information. IFS reads Document Tax Information first and Association No second. IFS does not check the ABN against ABN Lookup, so compare it yourself.
- Report building and construction payees correctly. The Australian TPAR file covers building and construction and zero-fills the ABN if it is missing, so check for zero ABNs before you lodge.
- Set Blocked for Payment on a supplier until checks are done. IFS has no standard approval for bank detail changes, so many sites add a custom event.
- Amount, invoice number and supplier cannot be changed once an invoice is posted. A wrong or padded claim has to be cancelled and entered again. Payment terms and authorizer can still be changed.
What IFS Cloud does on its own
IFS has a Blocked for Payment flag on the supplier. There is no standard approval of bank detail changes, so customers set Blocked for Payment through custom events when a payment address changes. The ABN is held in Document Tax Information.
- No standard bank change approval
IFS does not check the ABN against ABN Lookup.
What you need and the setup steps: Invoice fraud checks for IFS Cloud.
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 IFS Cloud
- How to set up a new supplier safely in IFS Cloud
- How to check a supplier's ABN in IFS Cloud
- How to stop paying a supplier invoice twice in IFS Cloud
What Pulsify adds
Pulsify flags changed bank details, an invalid or missing tax ID and emails that fail sender checks. Pulsify connects to IFS Cloud. We set up the connection for you. More about invoice fraud checks in Pulsify or Pulsify for builders.
More help
- Invoice fraud checks in MYOB Acumatica for builders
- Invoice fraud checks in Sage 300 CRE for builders
- Invoice fraud checks in Sage 300 for builders
- Duplicate invoice checks in IFS Cloud for builders
- PO matching in IFS Cloud for builders
- Invoice approvals in IFS Cloud for builders
- Line item coding in IFS Cloud for builders
- All IFS Cloud how-to guides
Sources
Last checked 2026-10-19.
- docs.ifs.com/ifsclouddocs/25r2/CountrySolutions/CountrySolution_pdf/AustraliaCountrySolution.pdf
- docs.ifs.com/ifsclouddocs/25r2/SubConValuation/AboutSubContractValuation.htm
- docs.ifs.com/ifsclouddocs/26r1/lang/en/SupplierInvoicing/ActivityMatchSubContractperLine.htm
- community.ifs.com/finance-financials-42/supplier-payment-details-approval-of-change-26446
- docs.ifs.com/ifsclouddocs/23r2/lang/en/SupplierInvoicing/ProcessMainSuppInv.htm
- 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
Common questions
Does IFS Cloud check a subcontractor's ABN?
It stores the ABN in Document Tax Information but IFS has no format check or ABN Lookup. The TPAR file zero-fills a missing ABN. Compare the ABN with ABN Lookup when you create the supplier and set Blocked for Payment until it is done.
How can a builder check a new subcontractor before paying?
Check the ABN on the ABN Lookup, confirm the licence with the state regulator and compare bank details against a signed supplier form. Phone the number you already hold when any detail changes.
Does IFS approve bank detail changes?
No standard workflow exists. Customers use custom events.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles invoice fraud checks in IFS Cloud for builders.