Value Proposition: The Related Party Register connects “Who is the party?” to “What was done with them?” to “What is the balance in the TB?” and “Are there approvals?”: RPT Master List → Transactions Log → Period Balances → TB Tie-out → Approvals & Evidence → Disclosure Pack (Final) instead of an RPT disclosure based on scattered messages and files that do not close on the books.

In 20 seconds: What will you get?

• Related Party Master List: Card for each party (type of relationship, entity/individual, percentage/connection, effective dates).
• RPT Transactions Log: Transaction record (sales/purchases/services/loans/management fees… based on your activity) with reference.
• Approvals Tracker: Tracking required approvals for each transaction/agreement + approval date/reference.
• RPT Balances Schedule: Opening/movement/closing balances for each party (Receivable/Payable/Loans).
• TB Tie-out: Matching total balances with TB/GL accounts designated for related parties.
• Exceptions Log: Parties/transactions with incomplete data or tie-out discrepancies and closure plan.
• Disclosure Pack: Ready schedules for compiling annual disclosure + evidence index + Sign-off.

CTA related to deliverables: Receive Master + Transactions + Balances Tie-out + Approvals to prepare Disclosure Pack that closes on the TB instead of an unverified aggregation-based disclosure.

Suitable for

• Financial Controller looking to close related party disclosures on balances and provide evidence for the auditor.
• Chief Accountant / GL Lead needing to link related party transactions/balances to GL accounts and avoid year-end reclassifications.
• Compliance / Corporate Secretary wanting a well-organized and archived approvals and agreements register with transactions.

Not suitable for

• Companies that do not designate accounts/codes for related parties in the COA and cannot separate them in the TB (tie-out will not be completed).
• Those seeking a “ready disclosure text” without transaction data, balances, and approvals (the value lies in the register and evidence).

Without the register / With the register (Quick Comparison)

Before Use: 5 Symptoms in RPT Transactions

• The related party list is inconsistent and shows “new names” at Year-End.
• Transactions with related parties are recorded as ordinary transactions and are not tagged/classified, getting lost in reports.
• RPT balances (Receivables/Payables/Loans) do not close on the TB due to mixed accounts or late reconciliations.
• Required approvals (per governance) are undocumented and there is no reference for each transaction.
• When requested by the auditor: there is no evidence file linking (party → transaction → balance → contract/approval).

Related Party Register: Implementation Method (3 Steps Without Gaps)

Step 1: Preparation and Data Collection

• Establish Related Party Master: Names of parties + type of relationship + effective dates + group entities if applicable.
• Identify GL accounts/codes to be used for related parties or a method to distinguish them (Customer/Vendor codes/Dimensions).
• Extract TB/GL for relevant accounts + list of expected transactions/contracts.

Step 2: Record Transactions + Approvals + Evidence

• Record each transaction in the RPT Transactions Log (type of transaction, value, period, reference, key terms if necessary).
• Update Approvals Tracker: Does it require approval? Who approved? Approval date/reference.
• Raise any data/documentation gaps in the Exceptions Log and identify closure owner.

Step 3: Balances + TB Tie-out + Disclosure Pack

• Prepare RPT Balances Schedule: Opening/Movements/Closing for each party (AR/AP/Loans).
• Execute TB Tie-out between total balances and TB/GL accounts and close or document discrepancies.
• Compile Disclosure Pack: Disclosure schedules + evidence index + Sign-off for the “Final” version.

Product Components (Clear Inventory)

1. Related Party Master List
   • Practical Purpose: Define the party and its relationship and effective date to establish the scope of disclosure.
   • When to Use: During setup + update when adding/changing a party or relationship.
   • Resulting Evidence: Master list can be referenced to explain why the party is included in the RPT.
2. RPT Transactions Log
   • Practical Purpose: Record related party transactions with clear classification (sales/purchases/services/loans/fees…).
   • When to Use: Throughout the year, and as a basis for preparing disclosure at Year-End.
   • Resulting Evidence: Transaction log with reference for each transaction (Invoice/Contract/PO/Payment ref).
3. Approvals Tracker
   • Practical Purpose: Prove that RPT transactions went through the internal approval process (Board/Management) per company governance.
   • When to Use: For each new transaction or agreement/renewal.
   • Resulting Evidence: Approvals record linking the transaction to the approval reference.
4. RPT Balances Schedule
   • Practical Purpose: Aggregate related party balances (AR/AP/Loans) for each party with period movements.
   • When to Use: Month-End for monitoring + Year-End for disclosure.
   • Resulting Evidence: Opening/Movements/Closing schedule for each party supporting disclosure.
5. TB Tie-out
   • Practical Purpose: Prove that the total RPT balances match the designated TB/GL accounts.
   • When to Use: Before approving the statements and at year-end.
   • Resulting Evidence: Tie-out sheet showing accounts/codes and discrepancies with explanations.
6. Exceptions Log
   • Practical Purpose: Manage missing items: party without definition, transaction without reference, TB tie-out differences.
   • When to Use: Throughout the year and during Year-End closure.
   • Resulting Evidence: Exceptions log with owner and closure date/decision on exception approval.
7. Disclosure Pack + Evidence Index + Sign-off
   • Practical Purpose: Compile disclosure schedules and evidence into a single deliverable for the auditor/management.
   • When to Use: Year-End + when preparing statements/disclosures.
   • Resulting Evidence: Disclosure pack indexed with Sign-off proving the reference version.

CTA related to deliverables: Transactions + Balances + Approvals + TB tie-out to prepare a deliverable RPT disclosure.

What should be included in the deliverable?

• 01 – Master List: List of related parties (relationship definition/entity/effective).
• 02 – Transactions Log: RPT transactions log with references (Invoices/Contracts/PO/Payments).
• 03 – Approvals Folder: Approval attachments (minutes/resolutions/management approvals) linked to the tracker.
• 04 – Balances Schedule: Schedule of party balances (Opening/Movements/Closing) by party and type.
• 05 – TB/GL Evidence: TB for relevant accounts + any Subledger extracts (AR/AP) if necessary.
• 06 – TB Tie-out: Matching totals of balances with TB + explanations for discrepancies/reclassifications if any.
• 07 – Exceptions Log: List of open/closed items and justifications for decisions.
• 08 – Disclosure Tables: Disclosure schedules (Transactions by type + balances + key terms) ready for inclusion.
• 09 – Evidence Index & Pack Index: Index linking each number/table to source and attachment.
• 10 – Sign-off: “Final” version with Reviewer/Approver + approval date.

After Implementation (Two Points Only)

• Operational Outcome for the Team: Any RPT transaction is recorded immediately with its reference and approval, automatically entering the balances and disclosure schedule instead of being gathered at Year-End.
• Control/Audit Outcome (Evidence & Traceability): Disclosure closes on the TB: each party has documented transactions and balances matched with the books, with a record of approvals and evidence within the Disclosure pack.

FAQ — Questions Before Purchase

Is it suitable for IFRS/SMEs?

Yes, as a structure for the register and preparing the disclosure pack. The final disclosure format varies based on the reporting framework and presentation requirements within your company.

Does it help identify who is a “related party”?

It helps in documenting the definition you adopt (type of relationship, effective date) but does not issue a legal judgment. The decision should come from governance/management.

How do I link the register to the books if we do not have separate accounts for related parties?

You will need a distinguishing method: Customer/Vendor codes or Dimensions/Tags. Without distinction, the TB tie-out will not be completed, and balances will remain mixed.

Does it support loan and financing transactions between parties?

Yes, by classifying the transaction and type of balance (Loan receivable/Loan payable) within the balances schedule with the option to add key terms (duration/interest) as descriptive data.

What is the minimum data required to get started?

A list of related parties with relationship definitions + relevant TB/GL accounts + examples of transactions/contracts or at least opening/closing balances for the parties.

Is it suitable for multi-entity companies?

Yes. The master list can be managed at the group level and then separate transactions/balances by legal entity or branch as needed for disclosure.

Does it include approvals for related party transactions?

Yes, through the Approvals tracker linking each transaction to the approval reference and attachment (resolution/minutes/approved email per your system).

Does it produce a “final disclosure text”?

It prepares the tables, figures, and evidence (Disclosure tables + pack). The wording of the final text depends on your notes template and reporting framework.

Ready to close RPT on TB and deliver the disclosure?

You will receive: Master list + transactions log + approvals tracker + balances schedule + TB tie-out + disclosure pack index + sign-off to produce a deliverable RPT disclosure.