Subcontracting invoice for direct payment, subcontracting invoice to the supplier paid by the customer
French Use Case n°13 and 14: Subcontracting and co-contracting (B2B/B2C)
Introduction: This section deals only with cases of subcontracting and co-contracting that do not fall within the scope of the "Works Invoice" functionality provided in B2G on Chorus Pro.
At this stage, private works contracts (B2B) should give rise to a conventional electronic invoice via the platforms (PPF or PDP). This means that only the invoice for the work, including all the compulsory details, will need to be transmitted, with draft invoices circulating outside the "electronic invoicing" tool.
Overview of the treatment of subcontracting
If B2B subcontracting is used, two separate invoices must be processed for electronic invoicing:
The subcontractor sends an invoice (F1) to the client (supplier). If the transaction qualifies for reverse charge of VAT, the subcontractor must indicate "reverse charge of VAT by the contractor" on the invoice; otherwise, he must indicate the amount of VAT due on the amount of his service.
The client/contractor sends an invoice (F2) to the buyer for the total amount of the services and/or goods. The F2 invoice mentions the VAT due on the total amount excluding VAT (contractor's services + subcontractor's services).
These invoices do not require any special handling; they are processed in the same way as standard invoices.
In the case of B2G subcontracting, the subcontractor's invoice is always sent to the public addressee, regardless of the approval given by the contractor.
However, special payment terms may apply:
The French Public Procurement Code (article L.2193-10) and Act no. 75-1334 of December 31, 1975 (title II) provide for direct payment for subcontracting. It applies to public procurement contracts and to contracts awarded by public enterprises that are not purchasers subject to the Public Procurement Code. When the subcontractor of a contract holder is eligible for direct payment, he may be paid directly by the public entity for the part of the contract he is responsible for executing. Validation by the contract holder within 15 days is nevertheless required. Failing this, validation (visa) is tacit (articles R.2193-12 and R.2193-13 of the French Public Order Code).
In the case of other subcontracts, in particular private contracts, the purchaser may pay the subcontractor directly by delegating payment to the contractor, in accordance with article 14 of the aforementioned law. Validation by the contractor is also required, but cannot be tacit.
In the case of direct payment of subcontractors under public procurement contracts, a specific invoicing framework is provided for: framework S3 (Subcontracting service invoice with direct payment).
If payment is delegated in other cases of subcontracting, the invoicing frame to be mentioned is: frame S5 (Subcontractor submits service invoice). In addition, the "EXT-FR-FE-BG-02 - PAYOR OF INVOICE" block can be used and completed in the F1 invoice (between the subcontractor and the client) to indicate payment by the buyer (end client - project owner) of F2 (see case n°3 of external specifications).
French Use Case n°13: Invoice to be paid by a third party (subcontracting with direct payment or delegated payment)
Case study 13 covers the business case of a subcontractor who, as part of a contract, sends an invoice to the supplier, but with direct payment by the purchaser within the meaning of the French Public Order Code, or by delegation in the case of private contracts.
B2B subcontracting by delegation
Modeling for B2B subcontracting invoices is different from that for B2G, as the recipient does not receive the subcontractor's invoice. Consequently, a distinction must be made between the issue of 2 invoices:
A first invoice (F1) from the subcontractor to the contractor
A second invoice (F2) from the holder to the buyer
The specifics of the data and associated management rules are :
BG-4: subcontractor
BG-7 : supplier/owner
EXT-FR-FE-BG-02 (BILL PAYER): buyer
Total Invoice amount (BT-112): amount of subcontractor's work
BT-23 : S5 (Subcontractor submits service invoice)
Figure 12: Invoice (F1) to be paid by a third party (B2B subcontracting)
Figure 13: Invoice (F2) to be paid by a third party (B2B subcontracting)
B2G subcontracting with direct payment
In the case of subcontracting within the framework of public procurement contracts (excluding work invoice functionalities and legal briefs), the contractor "endorses" the subcontractor's invoice, which is in all cases forwarded to the purchaser (public addressee).
The specific characteristics of the data and associated management rules are :
BG-4: subcontractor
BG-7 : buyer (public recipient)
EXT-FR-FE-BG-03 (SALES AGENT): supplier/owner
Total invoice amount (BT-112): amount of subcontractor's services
BT-23 : S3 (Subcontracting service invoice with direct payment)
Figure 14: Invoice to be paid by a third party (case of subcontracting with direct payment in B2G)
The business case steps are as follows:
Step
Stage name
Responsible player
Description
1
Creation of the invoice to cardholder
Subcontractor
The subcontractor sends an invoice covering its services to the supplier / contractor.
2
Reception of data
PPF
A feed declaring billing data is sent in parallel by the PPF, which receives the information.
3-4-4b
Receipt of invoice
Owner
The invoice is made available to the holder:
1. The holder SEES the invoice with a compulsory comment that allows information to be added for the public recipient.
2. The holder DOES NOT VIEW the invoice, with a mandatory comment to add information for the public recipient.
3. The holder does not process the invoice within 15 days of the invoice being made available. In this case, the invoice will be tacitly validated with a generic comment to warn the public recipient of this tacit validation.
In all cases, the PPF forwards the invoice to the PPF (Chorus PRO).
5
Lifecycle transmission
PPF
PPF transmits a lifecycle flow to PPF (Chorus PRO)
6
Receipt of invoice
Buyer
PPF (Chorus PRO) makes the invoice available to the public recipient
:-
:-
:-
:-
7A
Refusal of invoice
Buyer
The public recipient can also reject the invoice (with a mandatory comment).
In this case, PPF (Chorus PRO) transmits a lifecycle flow to PPF to be made available to the subcontractor and the refusal holder.
These players will also be notified of the refusal
7B
Invoice approval
Buyer
The public recipient approves the invoice
7C
Receipt of refusal
Subcontractor Owner
The 2 parties are informed of the refusal and the subcontractor can send a credit note and a new or corrected invoice.
8-9
Invoice status processing
Buyer
The buyer can change the status of the invoice, which will be sent to the PPF to be made available to the 2 parties involved in the invoice.
10
Invoice payment
Buyer
The public recipient pays the invoice and sets the status to
The "payment forwarded" function informs the 2 parties involved in the invoice.
11
Invoice collection
Subcontractor
The subcontractor changes the status of the invoice to "cashed".
12
Payment data declaration
PPF
PPF generates payment data to be made available to the tax authorities
Please note: Both the subcontractor and the contractor must have an account on the public invoicing portal.
edmundgray
commented
11 months ago
Background
Subcontracting invoice for direct payment, subcontracting invoice to the supplier paid by the customer
French Use Case n°13 and 14: Subcontracting and co-contracting (B2B/B2C)
Introduction: This section deals only with cases of subcontracting and co-contracting that do not fall within the scope of the "Works Invoice" functionality provided in B2G on Chorus Pro.
At this stage, private works contracts (B2B) should give rise to a conventional electronic invoice via the platforms (PPF or PDP). This means that only the invoice for the work, including all the compulsory details, will need to be transmitted, with draft invoices circulating outside the "electronic invoicing" tool.
Overview of the treatment of subcontracting
If B2B subcontracting is used, two separate invoices must be processed for electronic invoicing:
These invoices do not require any special handling; they are processed in the same way as standard invoices.
In the case of B2G subcontracting, the subcontractor's invoice is always sent to the public addressee, regardless of the approval given by the contractor.
However, special payment terms may apply:
The French Public Procurement Code (article L.2193-10) and Act no. 75-1334 of December 31, 1975 (title II) provide for direct payment for subcontracting. It applies to public procurement contracts and to contracts awarded by public enterprises that are not purchasers subject to the Public Procurement Code. When the subcontractor of a contract holder is eligible for direct payment, he may be paid directly by the public entity for the part of the contract he is responsible for executing. Validation by the contract holder within 15 days is nevertheless required. Failing this, validation (visa) is tacit (articles R.2193-12 and R.2193-13 of the French Public Order Code).
In the case of other subcontracts, in particular private contracts, the purchaser may pay the subcontractor directly by delegating payment to the contractor, in accordance with article 14 of the aforementioned law. Validation by the contractor is also required, but cannot be tacit.
In the case of direct payment of subcontractors under public procurement contracts, a specific invoicing framework is provided for: framework S3 (Subcontracting service invoice with direct payment).
If payment is delegated in other cases of subcontracting, the invoicing frame to be mentioned is: frame S5 (Subcontractor submits service invoice). In addition, the "EXT-FR-FE-BG-02 - PAYOR OF INVOICE" block can be used and completed in the F1 invoice (between the subcontractor and the client) to indicate payment by the buyer (end client - project owner) of F2 (see case n°3 of external specifications).
French Use Case n°13: Invoice to be paid by a third party (subcontracting with direct payment or delegated payment)
Case study 13 covers the business case of a subcontractor who, as part of a contract, sends an invoice to the supplier, but with direct payment by the purchaser within the meaning of the French Public Order Code, or by delegation in the case of private contracts.
B2B subcontracting by delegation
Modeling for B2B subcontracting invoices is different from that for B2G, as the recipient does not receive the subcontractor's invoice. Consequently, a distinction must be made between the issue of 2 invoices:
The specifics of the data and associated management rules are :
Figure 12: Invoice (F1) to be paid by a third party (B2B subcontracting)
Figure 13: Invoice (F2) to be paid by a third party (B2B subcontracting)
B2G subcontracting with direct payment
In the case of subcontracting within the framework of public procurement contracts (excluding work invoice functionalities and legal briefs), the contractor "endorses" the subcontractor's invoice, which is in all cases forwarded to the purchaser (public addressee).
The specific characteristics of the data and associated management rules are :
Figure 14: Invoice to be paid by a third party (case of subcontracting with direct payment in B2G)
The business case steps are as follows:
Step
Stage name
Responsible player
Description
3-4-4b
Receipt of invoice
Owner
The invoice is made available to the holder:
1. The holder SEES the invoice with a compulsory comment that allows information to be added for the public recipient.
2. The holder DOES NOT VIEW the invoice, with a mandatory comment to add information for the public recipient.
3. The holder does not process the invoice within 15 days of the invoice being made available. In this case, the invoice will be tacitly validated with a generic comment to warn the public recipient of this tacit validation.
In all cases, the PPF forwards the invoice to the PPF (Chorus PRO).
7A
Refusal of invoice
The public recipient can also reject the invoice (with a mandatory comment).
In this case, PPF (Chorus PRO) transmits a lifecycle flow to PPF to be made available to the subcontractor and the refusal holder.
These players will also be notified of the refusal
The public recipient pays the invoice and sets the status to
The "payment forwarded" function informs the 2 parties involved in the invoice.
Please note: Both the subcontractor and the contractor must have an account on the public invoicing portal.
NOTE: The text/pictures of this use case no. 13 and 14 were taken from the French government site! The text was extracted from V2.3 - deepl English DOCX and any pictures were taken from V2.2 - original English PDF)