Glossary

Finance vocabulary, explained simply

These definitions follow French law. Each entry says what the notion is, who files it and with whom — and how it maps into Odoo.

A

Accounting entries file (FEC): The FEC is a standardised export of every accounting entry in a financial year, which any company keeping computerised books must be able to hand to the French tax authority during an audit. Its format is prescribed.
Accounting journal (journal): An accounting journal records entries in chronological order, by type of operation: sales, purchases, bank, miscellaneous. It answers "what was recorded on this day?"
Aged balance (balance âgée): The aged balance sorts customer receivables and supplier payables by how overdue they are, turning a single outstanding total into a list of dated, actionable delays. Everything still open on it is, by definition, still owed.
Approved platform (PA): An approved platform is a private operator registered by the DGFiP to issue, transmit, and receive electronic invoices between businesses. Every taxable business must go through one.

B

Balance sheet (bilan): The balance sheet shows, at the closing date, what a business owns and what it owes. Assets show where the money went, liabilities show where it came from — and the two always balance.
Bank reconciliation (rapprochement bancaire): Bank reconciliation compares the bank account in the accounting records with the statement issued by the bank, and explains every difference between them. Whatever stays unexplained is an anomaly, not a detail.
Business property levy (CFE): The CFE is a local tax owed by every business carrying out a self-employed professional activity in France. It is based on the rental value of the property used for that activity.

C

Cash flow forecast (plan de trésorerie): A cash flow forecast projects, period by period, expected cash receipts and payments and the resulting balance. It works in actual cash flows, not in income and expenses.
Chorus Pro: Chorus Pro is the portal through which suppliers send invoices to the French public sector. It covers public procurement only, and continues to exist alongside the separate B2B e-invoicing reform.
Corporate income tax (IS): Corporate income tax is charged on the profit made by the company itself, which is the party liable for it. Shareholders are only taxed afterwards, on what is actually distributed to them.

D

Days sales outstanding (DSO): DSO — days sales outstanding — measures the average number of days between invoicing and collection. It translates into days what your customers owe you.

E

E-reporting: E-reporting is the transmission to the tax authorities of transaction data that falls outside domestic electronic invoicing. It complements electronic invoicing rather than replacing it.
Electronic invoice (facture électronique): An electronic invoice is one issued, transmitted, and received in a structured format that software can read without human intervention. A PDF sent by email is not one.
EU VAT number: An EU VAT number is the unique tax identifier assigned to a business for its trade within the European Union. It is what allows the exemption on supplies of goods to another member state.

F

Factur-X: Factur-X is a hybrid invoice format: a human-readable PDF with a machine-readable XML file embedded inside it. Both travel together in a single file.
Financial year (exercice comptable): The financial year is the period over which a business measures its activity and closes its accounts. It runs for twelve months, without having to align with the calendar year.

G

General ledger (grand livre): The general ledger groups every entry for a financial year, sorted account by account. It answers "what happened on this account?", where the journal answers "what was recorded on this day?"

I

Income statement (compte de résultat): The income statement summarises a company's income and expenses for a financial year and arrives at the result. Where the balance sheet is a snapshot at the closing date, the income statement is a film of the period.
Invoice matching (lettrage): Invoice matching (lettrage) links an invoice to its payment in a third-party account by tagging both with the same marker. Whatever stays unmatched is, by definition, what remains owed.

N

Notes to the financial statements (annexe): The notes to the financial statements (annexe) explain the figures in the balance sheet and income statement: the accounting methods used, the detail behind each account, and commitments not shown on the balance sheet itself. They form part of the annual accounts rather than an attachment to them.

O

On-site tax audit (vérification de comptabilité): An on-site tax audit is a tax inspection carried out on the business's own premises, where the tax authorities compare filed returns against the accounting records. It follows a strict procedure with specific safeguards.

P

Pass-through taxed company (société à l'IR): In a pass-through taxed company, profit is not taxed at the company level but directly in the hands of the shareholders, each on their share. This is known as fiscal transparency.
Peppol: Peppol is a secure European network that lets businesses exchange invoices and commercial documents without a bilateral agreement. Every participant is reachable through a unique identifier.
Public invoicing portal (PPF): The PPF is the DGFiP's portal that acts as a business directory and a hub for the tax data sent in by approved platforms. It is not a platform for exchanging invoices.

R

Reliable audit trail (piste d'audit fiable): The reliable audit trail is the set of documented controls that link an invoice to the real transaction it records. It guarantees the authenticity of origin, the integrity of content, and the legibility of the invoice.

T

Tax return package (liasse fiscale): The liasse fiscale is the set of returns and schedules a company files with the French tax authority at year-end. It is what converts book profit into taxable profit.

V

VAT return: The VAT return summarises, for a given period, the VAT charged on sales and the VAT deductible on purchases. The difference is paid over to the state or carried forward as a credit.
VAT reverse charge (autoliquidation): The VAT reverse charge (autoliquidation) shifts the obligation to declare VAT onto the customer: the supplier invoices net of VAT, and the buyer charges and deducts the tax on their own return. It applies mainly to intra-EU purchases, construction subcontracting, and import VAT.
VAT taxable person (assujetti): A VAT taxable person (assujetti) is anyone who carries out an economic activity independently, regardless of legal status or results. Being a taxable person does not automatically mean being liable to actually charge and remit VAT.

W

Working capital requirement (BFR): The working capital requirement (BFR) measures the cash tied up by the operating cycle: what the business has paid or advanced before it is paid itself. It equals inventory plus customer receivables, minus supplier payables.

These definitions are for guidance and do not replace professional advice. Each entry carries its last-updated date. Filing deadlines are not listed here: they change every year and live in the tax calendar.