What is the Fichier des Écritures Comptables (FEC)?

Are you the manager of a company and need to create an FEC (Fichier des Écritures Comptables )? But what is the FEC?

The Fichier des Écritures Comptables, or FEC, is a database used as a starting point for audits carried out by the tax authorities, for a given company.

The creation and provision of this file has been mandatory since 2014.

Ultimately, the purpose of such a file is to enable the accounting controller to :

• Check correspondence between accounting documents supplied and all tax returns filed
• Facilitate checks and save real time, notably by reducing face-to-face time on the company's premises.

To help you create this file, we're focusing today on the Fichier des Écritures Comptables (accounting entries file)!

Who is concerned by the accounting entries file?

Some taxpayers are required to send a copy of the FEC.

These include those who :

• Computerized accounting
• Are liable forcorporate income tax(impôt sur les sociétés), in the specific category of BIC or BNC, and finally agricultural profits or BA. 
• Are required to submit accounting documents relating to a provision of the French General Tax Code (CGI)
• Are liable for an accounting audit addressed on or after January 1, 2014.

On the other hand, some taxpayers are exempt from drawing up a FEC.

These include :

• Auto-entrepreneurs
• All Sociétés Civiles Immobilière (SCI) which are subject to the French "Revenus Fonciers" tax. However, this only applies to SCIs whose partners are individuals who are not subject to commercial accounting obligations.

Finally, a number of measures have been put in place for companies that fall under the micro regime and have their accounts managed by a third party on a paper register or spreadsheet.

FEC contents

The FEC contains a wide range of information relating to a company's accounting department

Focus on the different types of information contained in the FEC :

• The journal code and label for the accounting entry
• Accounting entry number
• The date on which the accounting entry in question was recorded
• Company bank account number and name
• Sub-account number and name
• Voucher reference and date
• The wording of the accounting entry and its validation date
• Both debit and credit amounts

Please note that any boxes that are not filled must be left empty (no 0s or spaces).

Penalties for failing to submit the FEC

Failure to submit such a document to the tax authorities may result in penalties for the taxpayer.

Possible sanctions are :

• A fine of €5,000 if no correction is made to the original document.
• A financial penalty equal to 10% of the duties then payable by the taxpayer if, on the contrary, a correction has been made. Note that the amount of this penalty cannot fall below €5,000.
• These fines are imposed per accounting year.

Note that such penalties have only been applicable since August 10, 2014, as the fine was set at €1,500 before that date.

In conclusion, you need to make sure that your accountant produces the FEC and submits it to the tax authorities, or that your company's software can generate this file.

It would be a shame to have to pay such an easily avoidable financial penalty.