(FRA) Setting Up Country-Specific Functionality for France

This chapter provides an overview of the alternate chart of accounts for France and discusses how to set up:

User-defined codes (UDCs).
Automatic accounting instructions (AAIs).
Payment formats.
VAT (value-added tax) processing.

Understanding the Alternate Chart of Accounts for France

In France, local businesses are required to use a legal, or statutory, chart of accounts (PCG82 - Plan Comptable Général). The French statutory chart of accounts uses a decimal-based numbering system with 10 account classes:

Account	Classes
Balance Sheet	These account classes are included on the balance sheet: Class 1: Capital Accounts and Borrowings and Long-Term Debt Class 2: Fixed Assets and Long-Term Investments and Assets Class 3: Inventories Class 4: Receivables, Payables, and Related Accounts with third parties Class 5: Cash and Marketable Securities
Income Statement	These account classes are included on the income statement: Class 6: Expenses Class 7: Income and Revenue
Other	These account classes are reserved for other reporting purposes: Class 8: Special Accounts - Extra account commitments that are not recorded on the balance sheet. Class 9: Analytical Accounts - Contribute to the calculation of a certain number of assets that determine the result. Class 0: Currently not used.

Accounts are subtotaled using leading digits. France's statutory chart of accounts uses the first three digits in the account:

The first digit defines the account category, such as capital, fixed asset, or stock.
The second digit defines the account type within the account category, such as tangible assets.
The third digit further defines the account, such as land accounts.

If you specify three leading digits, then the program subtotals accounts each time one of the three leading digits changes.

Classes and Subclasses

Accounts are organized in classes, subclasses, sub-subclasses, and so on. For example:

Class: 4 - Receivables and Payables
Subclass: 40 - Payables; 41 - Receivables
Sub-subclass: 419 - Advances Received from Customers, Discounts, and Refunds
Sub-sub-subclass: 4191 - Advances Received on Orders

Setting Up UDCs for France

Setting up French-specific UDCs enables you to use French-specific functionality. You also set up some base software UDCs with French-specific values.

Setting Up UDCs for Annual Reporting for France

Set up this UDC to identify fee categories for annual reports.

Category Code 07 (01/07)

Set up the Category Code 07 UDC (01/07) to identify fee categories for the Yearly Declaration of Payments of Commissions, Broking, and Fees (Declaration Annuelle Des Commissions, Courtage, Honoraires, Verses [D.A.S. 2]) reporting. Set up these codes:

AUT - Miscellaneous fees
COM - Commissions
COU - Courtage
DAU - Author fee
DIN - Copyright fee
HON - Fees
IRE - Expense reimbursements
JDP - Jeton de présence
RIS - Discount
ZZZ - Not applicable

You can select any value for the fees, but the descriptions are the official descriptions of the fees to be used for D.A.S. 2 reporting.

Setting Up UDCs for Tax Processing for France

Set up this UDC before processing transactions for value-added tax (VAT).

VAT on Receipts/Payments (74/TX)

Set up UDCs to identify the tax rates codes that are applicable to VAT on receipts and VAT on payments. You can use these codes to associate different VAT rates with transactions that are subject to the VAT Deductible on Payment and VAT Collectable on Receipt regimes.

Important! You should define only the tax codes used for VAT on Receipts and Payments in the VAT on Receipts/Payments UDC table (74/TX), not the tax codes for the VAT on Debits regime. Defining codes for VAT on Debits in this UDC table results in unpredictable errors.

Setting Up AAIs for France

Set up these base software AAIs before processing taxable transactions.

Setting Up AAIs for Tax Processing for France

Define these AAIs for the receivables and payables tax accounts using the GL offsets that are defined for the tax rates:

RTCOL, 44571.DEBIT
RTENC, 44571.ENC
PTDED, 44551.DEBIT
PTDEC, 44551.DEC

Setting Up AAIs for Depreciation Reporting for France

Set up these AAIs to accurately create journal entries when you calculate the difference between the French Declining Balance ledger and the French Straight Line ledger:

FF101 - Use this AAI to specify the account to which the system records the expense amount.

The system records to this account when the difference between the French Declining Balance ledger and the French Straight Line ledgers is positive.
FF102 - Use this AAI to specify the account to which the system records the derogatory depreciation amount.

This account is the offset account.
FF103 - Use this AAI to specify the account to which the system records depreciation reversal amounts.

The system records to this account when the difference between the French Declining Balance ledger and the French Straight Line ledgers is negative.

Setting Up Payment Formats for France

This section provides an overview of payment formats for France and discusses how to set up processing options for:

Create A/P Bank Tape - France (R04572F1).
Print Automatic Payments - Check - France (R04572F2).
Create A/P Bank Tape - France EFT International (R04572F3).

Understanding Payment Formats for France

JD Edwards EnterpriseOne software provides these payment formats for France:

Format	Description
R04572F1	Domestic electronic funds transfer (EFT) or paper transfers For paper transfers the program P04572F1B is called by P04572F1.
R04572F3	Foreign EFT payments.
R04572F2	Check letters.
R04572N	Drafts.

Required Setup for EFT Payments

To use the French EFT International payment format, set up your company and suppliers according to these instructions:

Use the Additional Individual Tax ID field for the company's SIRET (système informatique pour le répertoire des établissements) number in the company's address book information.

You can override the SIRET number from the address book record on the processing options for the French EFT International payment format (R04572F3).
When setting up the company's bank account information, use the SWIFT Code field for the BIC (bank identifier code) for the issuing bank, and set up IBAN (International Bank Account Number) information to include that information in the flat file.
When setting up the supplier's address book information, use one of the thirty available Address Book Category Codes for each of these fields:
- Economic Reason Code.
- Country Code for BDF Declaration.
- Fees Distribution Code.
When setting up the supplier's bank account information, use the SWIFT Code field for the BIC Code for the beneficiary's bank, and set up IBAN information to include that information in the flat file.

Considerations for Create A/P Bank Tape - France (R04572F1)

The Create A/P Bank Tape - France format for domestic payment transfers consists of a fixed length record that includes 160 characters. The information included in the EFT table includes:

Header record (03): Information about the company that is ordering the payment.
Detail record (06: Information about the suppliers who are to receive the payment and about the payment amount.

The EFT table can include as many detail records as there are payments in the payment group.
Total record (08): Total amount of the transfer.

The Create A/P Bank Tape - France program also includes the sender's bank identification number on the header, detail, and total records, as required by the Bank of France. You can specify this identification number in the processing options for the generation program or enter the number in the Bank User Number field (BACS) on the Revise BACS Information form of the G/L Bank Accounts program (P0030G).

Specifying a Different Version

You can specify different versions of the print program and the register program that you set up for your payment instrument default values. To do this, access the processing options for the Work With Payment Groups program (P04571). Enter the versions that you want to use in processing option 1 on the Print tab and processing option 1 on the Update tab.

For example, if your company needs to create electronic and paper payment transfer orders, you should set up these versions of Create A/P Bank Tape - France:

Electronic payment transfer orders
Paper payment transfer orders

You would also need to create two versions of Automatic Payment Groups to call the appropriate version of the print program.

G/L Payment Date

The system writes the GL payment date to the electronic funds transfer table in the DDMMY format, where Y is the last digit of the year. For example, July 07, 2005 is written to the table as 07075.

Bank Transit Codes

The system writes the bank transit number of your company to the header record and the bank transit number of the suppliers to the detail records of the EFT table. In both records, the bank transit number is split into the Bank Identification Number (5 digits) and the Branch Identification Number (5 digits).

Considerations for Print Automatic Payments - Check - France (R04572F2)

You can specify that Print Automatic Payments - Check - France (R04572F2) prints the check amount in words when you set the Translation processing option. The Translation processing option lets you specify whether the system uses a translation routine that you have attached to the Currency Codes table (F0013).

You associate translation routines with currency codes in the Currency Codes program (P0013). For example, to create an association between the euro and a routine that prints the amount in French text, you specify that the system uses translation routine X005005EF when you set up a currency code for the euro.

The processing options on the Translation tab follow a hierarchy to determine which translation routine the system uses for printing the check amount in words on the check.

If the processing option is completed with a valid translation routine, the system uses that routine.
If the processing option is blank or contains an invalid routine, the system reads the Currency Codes table (F0013) to determine if a translation routine is associated with the currency. If a translation routine exists, the system prints the check amount in words, according to the routine that is specified.
If the F0013 table does not contain a translation routine for the currency, the system does not print the check amount in words on the check.

Considerations for Create A/P Bank Tape - France EFT International (R04572F3)

This information is included in the EFT flat file that is created by the Create A/P Bank Tape - France EFT International payment format:

Header record (03): Information about the company that is ordering the payment and the company's bank.

The system populates this record with the International Bank Account Number (IBAN) of the GL Bank Account of the Company ordering the payment if the IBAN exists in the Bank Transit Master table (F0030). If no IBAN exists, the system prints the transit bank account plus the bank account number from table F0030. You specify in a processing whether the system uses the IBAN.
Operation detail record (04: Information about the suppliers who are to receive the payment and the payment amount.

The EFT table can include as many detail records as payments in the payment groups. The system populates this record with the IBAN number if it exists in table F0030. If no IBAN number exists, the system prints the transit bank account plus the bank account number from table F0030.
Beneficiary's bank record (05) - Information about the beneficiary's bank.

This information is ignored if the payer asks for a check payment.
Intermediary bank record (06): Information about the bank that is being used as an intermediary.

This section enables the payer to indicate a bank through which the funds must transit. JD Edwards EnterpriseOne software does not directly support this functionality; a customization is required to implement this functionality.
Supplemental information record (07): Supplemental information about the payment. JD Edwards EnterpriseOne software supports only these fields for record 07:
- Record Code
- Operation Code
- Sequential Counter
- Reason
Total record (08: The total amount of the transfer.

You must customize the Create A/P Bank Tape - France EFT International program to implement these fields:

Currency Bought
Exchange Contract Reference
Date Bought
Exchange Rate
Instruction

You can use the Bank Accounts by Address program (P0030A) to add IBAN information to the Bank Transit Master table (F0030). The Create A/P Bank Tape - France EFT International format supports IBAN; the output records contain the IBAN number and other related IBAN information if you set up IBAN information for your company and your supplier.

Setting Processing Options for Create A/P Bank Tape - France (R04572F1)

Processing options enable you to specify the default processing for programs and reports.

Processing

Mode

Enter 1 to print a paper Funds Transfer Order. If you leave this processing option blank, the system creates an EFT file.

Tape

Tape Information	Enter 1 to write the vendor number to the reference field of the detail record. Leave this processing option blank to write the payment document number to the detail record.
City	Specify the city that the system writes to the payment record.

Tape (more)

Sender Bank	Specify the sender's bank ID number. You can enter up to 6 characters. If you leave this processing option blank, the system uses the Bank Account Bank System User Number (BACS). You must complete this processing option for the tape to be accepted by the bank clearing house.
Sender's Fiscal	Specify the sender's fiscal identification (15 positions). This value can be either the SIRET code (1 + 14 digits) or another code (2 + code).

Bank and Bank (More)

Use these processing options to specify the default values for the bank tape.

Devise Name	Enter the devise name.
Tape Density	Enter the tape density.
Label Name	Enter the label name.
Block Size	Enter the block size.
New Volume Name	Enter the new volume name.
New Owner ID	Enter the new owner ID.
File Name	Enter the file name.

Currency

Currency

Specify the currency code that is used in your system to identify the euro.

Setting Processing Options for Print Automatic Payments - Check - France (R04572F2)

Processing options enable you to specify the default processing for programs and reports.

Address Format

Address Format ID (FUTURE USE)

This processing option is not used.

Payment Info

Purchase Order Number	Enter 1 to print the purchase order number on the check stub instead of printing the supplier invoice number.
Payment Remark	Enter 1 to print the payment remark on the check stub.
City	Enter the city to print on the payment.

Print Info

Forms Type (FUTURE USE)

This processing option is not used.

Translation

Translation Program

Specify which translation program to use to translate the payment amount into words. The value that you enter must exist in the Check Translation (98/CT) UDC table. If you leave this processing option blank, the system uses the translation program associated with the payment currency.

Setting Processing Options for Create A/P Bank Tape - France EFT International (R04572F3)

Processing options enable you to specify the default processing for programs and reports.

Tape Header

1. Sender's SIRET	Enter the issuing SIRET (système informatique pour le répertoire des établissements) number to print in the header record. In France, the SIRET number is the unique registration number of a company in the chamber of commerce. If you leave this processing option blank, the system uses the value in the Additional Individual Tax ID field (TX2) from the Address Book Master table (F0101).
2. Payment Reference (Required)	Enter the value to populate the Payment Reference field in the header record. This field is manually populated and is mandatory.
3. Debit Account ID Type (Future)	This processing option is not used. Specify the ID Type segment of the Debit Account field in the header record. Values are: 0: Other (default) 1: IBAN 2: BBAN
4. Customer ID	Specify a value for the Customer ID segment in the header record. You determine the code in accordance with the bank. This is an optional field in the header record.
5. Debit for Bank Fees Account ID Type (Future)	This processing option is not used. Specify a value for the ID Type segment of the header record for the account to be debited for bank fees. Values are: 0: Other (Default value) 1: IBAN 2: BBAN
6. Debit for Bank Fees Account	Specify the account to be debited for bank fees that the system writes to the ID segment of the header record. Generally, you enter the IBAN number. If you leave this processing option blank, the system uses the general ledger bank account.
7. Currency Code of Bank Fee Account	Specify the currency code that the system writes to the Currency Code of the Account to be Debited for Bank Fees field in the header record. The value that you enter must exist in the Currency Codes table (F0013). If you leave this processing option blank, the system uses the general ledger bank account.
8. ID Payment Debit Type (Required)	Specify a value to populate the ID Payment Debit Type field in the Header record. Values are: 1: One debit for the entire payment group. 2: One debit for each payment. 3: One debit for each currency code.
9. Payment Type ID	Specify a value for the ID Payment Type segment in the header record. Values are: 1: Process payments using a single execution date and single currency. 2: Process payments using a single execution date and multicurrency. 3: Process payments using multiple execution dates and single currency. 4: Process payments using multiple execution dates and multicurrency (default value). If you enter 1, 2, or 3, the system stores the execution date or currency in the header record. If you enter 4, the system stores the execution date or currency in each detail record.
10. Preferred Processing Date	Specify the value for the Preferred Processing Date segment in the header record. The system uses the value you enter when the Payment Type ID segment of the header record has a value of 1 or 2. If the Payment Type ID segment has a value other than 1 or 2, the system date is used.

Tape Detail

Use these processing options to specify information for the detail records in the flat file.

1. Category Code Number for Economic Reason Code (Required)	Specify the address book category code that you use to store the Economic Reason Code for the Operation Detail record for the supplier. For example, if you set up category code 30 for the Economic Reason Code, enter 30 in this processing option. Values are 01 through 30.
2. Category Code Number for Country Code for BDF Declaration	Specify the address book category code that you set up to store the Country Code for BDF Declaration for the Operation Detail record in the flat file. For example, if you set up Category Code 30 for the Country Code for BDF Declaration, enter 30 in this processing option.
3. Payment Mode (Required)	Specify a value for the Payment Mode segment of the Operation Detail record. The system inserts the value into the Operation Detail record of the flat file. Values are: 0: Other. 1: By check of the payer's bank. 2: By check of the beneficiary's bank.
4. Category Code Number for Fees Distribution Code (Required)	Specify the address book category code that you set up to store the Fees Distribution Code for the Operation Detail record in the flat file. For example, if you set up category code 30 for the Fees Distribution Code, enter 30 in the processing option. Values are 01 through 30.

Bank

Use these processing options to specify the default values for the bank tape.

Devise Name	Enter the devise name.
Tape Density	Enter the tape density.
Label Name	Enter the label name.
Block Size	Enter the block size.
New Volume Name	Enter the new volume name.
New Owner ID	Enter the new owner ID.
File Name	Enter the file name.

Setting Up the System for VAT Reporting

This section provides the setup information necessary to complete the VAT reports for France.

System Setup for Processing French VAT

Before you can run the VAT on Payments and Receipts reports, you must complete this setup:

Set the Processing Options

Complete these processing options on the General Ledger Post Report (R09801) program:

Processing Option	Value
Update Tax File	3
Adjust VAT Account for Discount Taken	2 = Update VAT, Ext. Price, and Taxable.
Adjust VAT Account for Receipt Adjustments and Write Offs	2 = Update VAT, Ext. Price, and Taxable.

Set Up VAT Accounts

Define separate VAT accounts for the normal VAT on Debits, and the VAT on Receipts and Payments in the chart of accounts. At the end of the reporting period, you need to create manual entries to compensate the VAT on Receipts and Payments accounts. For example:

44571.DEBIT, VAT Collected on Debits.
44571.ENC, VAT Collected on Receipts.
44551.DEBIT, VAT Deductible on Debits.
44551.DEC, VAT Deductible on Payments.

Define separate tax rates for the VAT on Receipts and Payments regime, and the VAT on Debits regime with distinct GL Offsets. For example:

C206, AR VAT on Debits, GL Offset = COL.
C206E, AR VAT on Receipts, GL Offset = ENC.
D206, AP VAT on Debits, GL Offset = DED.
D206E, AP VAT on Payments, GL Offset = DEC.

Important! Set up the tax rates used only for VAT on Receipts and Payments, not for VAT on Debits, in user-defined code table (74/TX).

For example, in the previous list of tax rates, only these rates should be defined in user-defined code table (74/TX):

C206E, AR VAT on Receipts.
D206E, AP VAT on Payments.

Set Up AAIs

Define these AAIs for the receivables and payables tax accounts using the GL offsets that are defined for the tax rates:

RTCOL, 44571.DEBIT
RTENC, 44571.ENC
PTDED, 44551.DEBIT
PTDEC, 44551.DEC