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 sub totaled 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.