Posted by Katarina Tierer - Finance Expert, Vigilens Consulting, France
Questions on localizing Oracle JD Edwards ERP in France? Read our blog on what to look out for, commonalities across Europe and what's different in France.
JDE ERP Localizations for France
In terms of ERP, many of the localizations in France are common across the European Union (EU) - you might also like to read my colleague Patricia’s blog post on ERP localizations in the UK & Ireland.
In that post Patricia mentions SEPA and this is, of course, also relevant to France. As Patricia pointed out in her blog, the most recent localizations for SEPA - The Single European Payments Area (SEPA) initiative for European financial infrastructure have proven not to be as standard as the EU intended. While the EU has succeeded in standardizing the structure of the Bank account information into the IBAN & BIC number, each bank has a tendency to add its only mandatory fields to the XML format for transfer. So while JDE produces the standard SEPA format for both Credit Transfer & Direct Debit, we also have to add additional localizations for specific banks.
As a leading EMEA partner who regularly works on European projects we have lots of experience with these EU localizations as well as the more local country specific ones listed below.
If you have questions about rolling out JD Edwards in Europe, please do not hesitate to contact us, or as we say here in France, Contactez-nous!
List of French JD Edwards Localizations
PCG (Plan Comptable Général)
To meet legal requirements, companies have to set up their statutory journal entries based on a chart of accounts format provided by the French Accountancy Authority - (ANC). Category codes in JD Edwards allow companies to implement alternate charts of accounts, such as French PCG.
Some legal reports with a specific French format are needed for auditors, like journals, trial balance and general ledger. These reports are provided by JD Edwards localizations.
TVA on Payments
A certain type of purchasing VAT is deductible only when the related invoice has been paid to the supplier, especially when purchasing services. Companies have to separately track this kind of VAT in order to deduct VAT amounts in the right period. A localized program is available to support this legal requirement.
Use of drafts as a form of payment is still in place in France. Complete payments and receipts processing are available in JD Edwards localizations.
RIB Control and ETEBAC Bank format
RIB (Relevé d’Identité Bancaire) is the former format for bank accounts used in France. It is has been replaced by IBAN and BIC within SEPA, but is still used in France. Localization provides a control on the RIB key to ensure that the bank account is valid. ETEBAC is the former norm for bank transfers in France, managing text files (160 & 320) for exchange with Banks. It is currently replaced by SEPA. Localized programs are available to generate supplier payments and customer direct debits.
DADS2 (Déclaration des honoraires ou commissions) is a legal requirement when companies are paying fees or commissions to third-parties. They have to declare these amounts annually, indicating third-parties' names and amounts paid. This type of declaration is close to US-1099 in terms of elements to report. Localization provides a category code for DADS2.
FEC (Fichier d’Ecritures Comptables)
Effective from January 1, 2014, new rules require all companies subject to tax in France and under audit by the French tax authorities to produce audit documentation in a prescribed electronic format. This is a new statutory requirement that complements the printed mandatory journals required by law; this electronic audit File along with journals must use the French GAAP.
Companies are requested to produce the FEC even if they have not been notified of an imminent audit. They should archive those files and have them readily available.
The main characteristics of this mandatory requirement are:
The new required Audit File (FEC – Fichier d’Ecritures Comptables) must contain all accounting entries (non-aggregated – Detailed as opposed to centralized) in French GAAP, numbered in chronological and sequential order by validation date with no gaps including the beginning of year journals.
Use of French Chart of Accounts as well as descriptions in French is required.
JD Edwards provides a localized program to produce the FEC file according to the file structure required by the tax administration.
FR & EU JD Edwards Localizations
SEPA Credit Transfer
The Single European Payments Area (SEPA) initiative for European financial infrastructure involves the creation of a zone in EURO in which all payments are considered domestic and there is no distinction between the national and international payments. The SEPA Credit Transfer scheme is supported.
SEPA Direct Debit
The Single European Payments Area (SEPA) initiative for European financial infrastructure involves the creation of a zone in EURO in which all payments are considered domestic and there is no distinction between the national and international payments. The SEPA Direct Debit scheme is supported.
Enhanced Upload Functionality for BIC and IBAN
Tool allowing companies to do a mass update of the suppliers' and customers' bank accounts with the BIC and IBAN account information.
EU VAT registration number validation via VIES web service
The VAT Information Exchange System (VIES), maintained by the EU commission, offers a web service that allows verification of VAT registration numbers issued by EU Member States. EnterpriseOne automatically accesses the VIES SOAP service via a new business service.
European Union Sales List - ESL
The European Community Sales Listing is a recapitulative statement that lists the goods supplied and the services provided to customers registered for VAT in other European Union [EU] Member states. It is required in most EU member states. To generate the European Community Sales Listing the system uses Oracle’s BI Publisher.
All EU Member countries are required to provide Intrastat submission, if their imports or exports with other EU Member countries exceed published limits. The Intrastat localization is integrated with the Inventory, Procurement and Sales Order Processing applications for the capture and maintenance of detailed statistical information regarding merchandise trade between members of the European Union. Information that is tracked by the Intrastat system is based strictly on the actual, physical movement of goods between member countries. Intrastat information does not apply to the movement of monetary amounts or placement of orders between member countries. The major features of the Intrastat system are common in all member states, but the system allows national specificities to be taken into account.
The Intrastat localization provides maximum flexibility to meet country-specific Intrastat reporting requirements. Applications are provided to filter data from standard system tables to a work file, according to the reporting company's business practices. From the work file, data may be processed and output as required for Intrastat submissions. The output may be organized to meet most country-specific Intrastat reporting requirements.
Intrastat Reporting - IDEP/CN8-CBS IRIS Interface
Export Intrastat information from the Sales and Purchasing systems to the IDEP/CN8-CBS IRIS Intrastat reporting package.
Et Voila! Please don’t hesitate to contact me with any of your questions on rolling out JD Edwards in France.
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