Subcontracting invoice for direct payment - partly paid

[svanteschubert]

Background

Invoice from the supplier to the customer, partly already paid by the subcontracting invoice for direct payment

French Use Case n°14: Invoice to be paid by a third party (co-contracting)

1. B2B co-contracting

Managing co-contracting in B2B is different from B2G. There are 2 invoices to produce:

1. The invoice from the co-contractor to the agent ;
2. The invoice from the agent to the buyer.

The specifics of the data and associated management rules are :

F1 invoice	Invoice F2
- Invoicing frame: S6 (Submission of a service invoice by a co-contractor) - Supplier (BG-4): co-contractor - Sales agent (EXT-FR-FE-BG-03): agent - Addressed to (EXT-FR-FE-BG-04): Agent - Buyer (BG-7) : Buyer	- Invoicing frame: S6 (Submission of a service invoice by a co-contractor) - Supplier (BG-4): agent - Sales agent (EXT-FR-FE-BG-03): agent - Buyer (BG-7) : Buyer - Buyer's agent (EXT-FR-FE-BG-01) : MOE

In the case of co-contracting, the buyer only receives invoices from the contracting agent. When the buyer receives the agent's invoice, he pays both invoices.

Services offered by PPF :

1. If both the third party and the buyer are connected to the PPF, the latter will be able to view the invoice and its lifecycle.
2. If both supplier and buyer are connected to the PPF, the latter will have access to the invoice and its lifecycle for consultation purposes
3. Actors connected to the PPF will be notified by means of a lifecycle flow in the event of a change of the invoice status

Figure 15: Invoice to be paid by a third party (B2B co-contracting)

The business case steps are as follows:

Step	Stage name	Responsible player	Description
1	Creation of the invoice (F1) for the agent	Co-contractor	The co-contractor sends an invoice covering its services to the agent. Since the default setting is for the buyer to receive the invoice, we use the The "Addressed to" field (EXT-FR-FE-BG-04) is used to enter information for the agent. In this way, he/she will be the last recipient of the invoice.
2	Reception of data	PPF	A feed declaring billing data is sent in parallel by the PPF, which receives the information.
3-4a-4b	Receipt of invoice	Agent	The invoice (F1) is made available to the agent. There are several possible scenarios: 1- The representative can only refuse the invoice on one of the 2 possible grounds. The co-contractor will be notified of this refusal. 2- The mandatary SEES the invoice with a comment that allows you to add  information for the buyer
5-6	Create invoice (F2) for buyer	Agent	The agent sends the buyer an invoice for his services. For this invoice (F2), the agent will have to self-validate (because we use the same invoicing framework which requires a validator). /!\: In the case of works contracts, the agent may attach the draft summary statement of account to the invoice.
7-8	Receipt of invoice	Buyer	The purchaser receives the invoice, which may include a draft summary statement of account containing all the invoices from the co-contractors. With this document, he knows how much he has to pay, to which suppliers and on which bank details.
9a-9b	Receipt of invoice	Buyer	The invoice (F2) is made available to the buyer. Several scenarios are possible: 1. The buyer may refuse the invoice by giving a reason for refusal. The agent will be notified of this refusal by the PPF, if he has a user account and has subscribed to notifications. 2. The buyer approves the invoice.
9c	Refusal of invoice	Buyer	In the event of a refusal by the buyer, a lifecycle flow is transmitted to the PPF to be made available to the refusal agent. He will also be notified of the refusal
10	Invoice payment	Buyer	Buyer pays invoice (F1) and (F2)
11	Invoice collection	co-contractor	The co-contractor changes the status of the invoice to "cashed".
12	Invoice collection	Agent	The agent changes the status of the invoice to "cashed".
13	Payment data declaration	PPF	The PPF generates payment data for the tax authorities for invoices (F1) and (F2).

1. B2G co-contracting

This case deals with co-contracting outside works contracts.

In B2G, a single invoice is sent by the co-contractor, which, once approved by the authorized representative, is made available to the public addressee.

In the case of transmission of the invoice from the co-contractor to the agent, the specific data and associated management rules are :

• BG-4: co-contractor
• BG-7: the public recipient
• EXT-FR-FE-BG-03: In the sales agent block, we enter the agent's name.
• Total invoice amount (BT-112) : Amount of co-contractor's services
• BT-23 : S6 (Submission of a service invoice by a co-contractor)

Figure 16: Invoice to be paid by a third party (B2G co-contracting)

The business case steps are as follows:

Step	Stage name	Responsible player	Description
1	Creation of the invoice to agent	Co-contractor	The co-contractor sends an invoice covering its services to the principal.
2	Reception of data	PPF	A feed declaring billing data is sent in parallel by the PPF, which receives the information.
3-4A-4B	Receipt of invoice	Agent	The invoice is made available to the authorised representative: 1. The representative can only refuse the invoice on one of the 2 possible grounds. The co-contractor will be notified of this refusal. 2. The mandatary SEES the invoice with a comment to add information for the public recipient. The invoice is sent to PPF (Chorus PRO)
4C	Receipt of invoice rejection	Co-contractor	The co-contractor can consult the reason for refusal and the associated comment. He can send back a credit note and a new or corrected invoice.
5	Lifecycle transmission	PPF	PPF transmits a lifecycle flow to PPF (Chorus PRO)
6	Receipt of invoice	Buyer	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, Chorus PRO transmits a lifecycle flow to the PPF so that it can be made available to the co-contractor and the refusal agent. These players will also be notified of the refusal
7B	Invoice approval	Buyer	The public recipient approves the invoice
4C	Receipt of refusal	Co-contractor Contractor	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	Co-contractor	The co-contractor 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: The co-contractor and agent must have an account on the public invoicing portal.

NOTE: The text/pictures of this use case no. 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]

Example 1

A construction company hires a subcontractor. The subcontractor, acting as a third party, purchases necessary materials from a supplier on behalf of the construction company. The subcontractor pays the supplier directly.

After the payment is made, the supplier issues an invoice to the construction company. This invoice is partly paid by the subcontractor through a subcontracting invoice for direct payment. The construction company then pays the remaining balance of the invoice.

Example 2

Subcontractor Invoicing: The subcontractor completes the agreed-upon work and issues an invoice directly to the managing authority of the project, such as the government entity or main contractor.

Approval: The managing authority reviews the work to ensure it meets the contract specifications and approves the invoice for payment.

Direct Payment: Upon approval, the managing authority directly pays the subcontractor, bypassing the general contractor. This can be mandated by law or requested by the subcontractor if the local legislation allows.

Documentation: All parties maintain records of the transaction for financial tracking, taxation, and in case of any legal disputes.

This process aims to safeguard the financial interests of subcontractors, ensuring they are paid promptly for their services even if the main contractor faces financial difficulties.