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The complex business cases collected by French and German businesses.
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Subcontracting invoice for direct payment - supplier paid by customer #51

Open svanteschubert opened 1 year ago

svanteschubert commented 1 year 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:

  1. A first invoice (F1) from the subcontractor to the contractor
  2. A second invoice (F2) from the holder to the buyer

The specifics of the data and associated management rules are :

image

Figure 12: Invoice (F1) to be paid by a third party (B2B subcontracting)

image

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 :

image

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.

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)

edmundgray commented 1 year ago

related to #52