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 Sage 300
- Every Accounts Payable posting creates a posting journal that records all posted details and their general ledger distributions. Print and file each one. With the batch listings they let you trace a subcontractor payment from source document to ledger entry.
- An On Hold vendor cannot be paid from the Create Payment Batch screen, although you can still enter invoices for it. A payment made in Payment Entry is still possible, so limit that screen by security group.
Rules that matter for builders in Sage 300
- A supplier with no ABN on a business invoice generally needs 47% withheld. Check the ABN before the hold is released.
- The 2023 guide describes no bank change approval. Add-ons such as Orchid EFT Processing or Greytrix Vendor Approval add it.
- No TPAR report was found in Sage 300. A builder that must lodge needs a custom report or an add-on, so the vendor details have to be right in the file.
What Sage 300 does on its own
Standard Sage 300 Accounts Payable has no change log or approval for vendor bank details. Security groups limit who can add or edit vendors, and an On Hold status blocks the vendor from the payment batch run only. Add-ons add bank change approval and ABN checks.
- No bank change check or ABN check.
- No native change log for vendor bank details.
Orchid EFT Processing requires a 2-step approval on bank account changes and keeps an audit log. Its page lists BPAY among supported formats.
What you need and the setup steps: Invoice fraud checks for Sage 300.
Example
Example Landscaping Pty Ltd is added as a new vendor from a signed supplier form. A claim for $9,900 (including GST) arrives two days later with an ABN that is not on the form.
| Line | Amount | What the check finds |
|---|---|---|
| New vendor created with On Hold status | Cannot be paid from Create Payment Batch while on hold | |
| ABN keyed in Business Reg. No. | Sage 300 does not check it. Checked by hand on ABN Lookup | |
| Claim 1 entered | $9,900.00 | Invoices can be entered for a vendor on hold |
The ABN on the claim does not match the form, so the hold stays. The hold is released after a phone call to a known number. A payment made in Payment Entry can still bypass the hold, so only a few people have that screen.
Common mistakes for builders in Sage 300
- Relying on the On Hold status without limiting Payment Entry.
- Keying the ABN in a different optional field on each vendor.
- Skipping the posting journal. Printing and filing it is how you trace a payment back to the source document.
Step-by-step guides for Sage 300
- How to control vendor bank detail changes in Sage 300
- How to set up a new vendor safely in Sage 300
- How to check a vendor's ABN in Sage 300
- How to stop paying a vendor invoice twice in Sage 300
What Pulsify adds
Pulsify flags changed bank details, an invalid or missing tax ID and emails that fail sender checks. Pulsify connects to Sage 300. We set up the connection for you. More about invoice fraud checks in Pulsify or Pulsify for builders.
More help
- Invoice fraud checks in Sage Intacct for builders
- Invoice fraud checks in Dynamics 365 Finance for builders
- Invoice fraud checks in IFS Cloud for builders
- Duplicate invoice checks in Sage 300 for builders
- PO matching in Sage 300 for builders
- Invoice approvals in Sage 300 for builders
- Line item coding in Sage 300 for builders
- All Sage 300 how-to guides
Sources
Last checked 2026-10-19.
- cdn.na.sage.com/docs/en/customer/300erp/2023/open/Sage300_AccountsPayable_UserGuide.pdf
- 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 Sage 300 check a subcontractor's ABN or bank change?
Not in standard Accounts Payable. The 2023 guide has no bank change approval and no ABN lookup. Security groups limit who can edit vendors. Add-ons can add bank change approval. Check each new subcontractor on ABN Lookup before the first payment.
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 Sage 300 log changes to vendor bank details?
Not in standard Accounts Payable. Add-ons such as Orchid EFT Processing and Greytrix Vendor Approval add approval and change logging for vendor records.
Pulsify setup guides
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Book a call to see how Pulsify handles invoice fraud checks in Sage 300 for builders.