The Related Party Transactions note appears in the accounts when Bright Accounts Production identifies postings that are treated as related party transactions.

The note is normally triggered by balances or transactions posted to the relevant Related Party Transaction nominal codes or reporting groups.

Why is the Related Party Transactions note appearing?

The note can appear when transactions have been posted to nominal codes associated with related party transactions.

For example:

• 913 – Trading amounts owed to group companies > 1 year
• 681.01 – Shares in subsidiary undertakings additions

If these postings are present, Bright Accounts Production will generate the relevant Related Party Transactions note.

Remove the Related Party Transactions note

If the note should not appear, first check the postings that are causing it to be generated.

1. Review the Nominal Ledger for postings to the relevant Related Party Transaction nominal codes or reporting groups.
2. Identify any postings that should not be classified as related party transactions.
3. If appropriate, delete or reclassify the postings by moving them to the correct nominal code.
4. Reproduce or refresh the accounts.

Once there are no relevant postings triggering the note, the Related Party Transactions note should no longer be generated.

Important: Do not move or delete a posting solely to remove the note. The transaction should be posted to the nominal code that correctly reflects its underlying accounting treatment.

Change the wording of the Related Party Transactions note

If the related party postings are correct and you do not want to move them, the text displayed in the note can be amended using the user-defined text field.

1. Open the Related Party Transactions note in the produced accounts.
2. Hover over the relevant text.
3. The text should become highlighted in blue.
4. Select the highlighted text.
5. Amend the wording as required.
6. Save the change and reproduce the accounts if necessary.

For example, where appropriate, the user-defined text could state:

There are no related party transactions.

However, make sure the wording accurately reflects the client's circumstances before using this type of statement.

Important

Changing the wording of the note does not remove the underlying related party transactions or change their accounting treatment.

If you believe the note is appearing incorrectly, check the nominal codes and reporting groups assigned to the relevant postings first.

If you are unsure whether a transaction should be classified as a related party transaction, seek appropriate professional accounting advice.