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Related parties register

Mark the customers and vendors that are related to your company, with the relationship, ownership and control, so that every transaction with them is tracked for corporate tax.

For Verasol 2.12·3 min read

The related parties register says which of your customers and vendors are related to your company: a parent, a sister company, a subsidiary, a shareholder, a director or another connected party. Once a customer or vendor is in the register, Verasol adds every invoice you issue to it, or every bill you approve from it, to the intercompany transactions. That is what your corporate tax return uses to check that these transactions were at arm's length.

A related party in Verasol is always one of your customers or vendors. Create the customer or vendor first. A company that is both your customer and your supplier is registered twice, once in each role.

Open International › Related Parties.

The Related Parties Register
  • 1 Add Related Party adds one.
  • 2 Filter by Party Type (Customers or Vendors), Relationship Type and Status. The list opens on Active Only; choose All or Inactive Only to see the others.
  • 3 Each line shows the party, whether it is a customer or a vendor, the Relationship, the Ownership %, the Group Company it belongs to and its Status.
  • 4 The pencil edits the line; the bin removes it from the register, after you confirm.
  1. Click Add Related Party.
  2. Choose the Party Type: Customer or Vendor.
  3. Choose the customer or vendor in the list next to it.
  4. Choose the Relationship Type, for example parent company, sister company, subsidiary, shareholder, director, key management, close family member, or an entity with a common director or shareholder.
  5. If the party belongs to a group company you have registered, choose it as the Linked Group Company. See Group companies.
  6. Add the Ownership % and Voting Rights %, if any, and the Relationship Start Date.
  7. Tick Has Significant Influence or Has Control where they apply. The hints under them say when they generally do: from 20% and from 50% ownership.
  8. Add a Relationship Description and Notes if you wish, and click Add Related Party.
The Add Related Party panel

1 Party Type, 2 Relationship Type, 3 Linked Group Company, 4 Relationship Start Date, 5 Has Control.

A customer or vendor can be in the register only once. Adding it again is refused with the message "This party is already registered as a related party."

Change or end a relationship#

Click the pencil on the line. You can change everything except the party itself. When a relationship ends, untick Active and save:

  • New invoices and bills with the party are no longer added to the intercompany transactions.
  • The transactions made while it was related stay where they are, for the years they belong to.

If you make the party active again, or move its Relationship Start Date earlier, its booked documents from the start date on are added.