Bonjour à tous! Welcome to France, the country of “l’art de vivre” (the art of living) or “la joie de vivre” (the joy of living). This is not just a slogan, but a philosophy of life. The art of living consists of “… taking pleasure in even the most mundane aspects of life. It is not just survival, getting by through mere eating, drinking, sleeping... It is learning about how to take pleasure in the beauty of life, appreciating the simple pleasures” (Rapaille, 2015, p. 142).
France is a country with 68 million inhabitants , making it the second largest country in Europe, after Germany. It is one of the top travel destinations in the world. The picture above (taken by Alex during a SAP Transformation project 2023) of "Vallon des Auffes" shows a beautiful little harbor in the middle of the city of Marseille. There are many brightly painted fishing boats and many restaurants. For instance you can enjoy a fantastic pizza in Chez Jeannot.
In 2023, the country of Voltaire welcomed a staggering 72 million tourists from all around the globe, as reported by Travel IQ in 2024. It is no surprise that Charles de Gaul is the largest and busiest airport in the European Union. Apart from this, France is also famous for its gastronomy, and the largest variety of bakeries. The French enjoy spending hours in restaurants, which goes against the modern concept of ‘fast food’. After all, France’s motto is "Slowly in the morning, not too fast in the evening."
Doing business in France can be a unique experience. It is important to note that the French have a different perspective on work. While they are not opposed to working, they tend to value art and creativity just as much. They prioritize the creation of beauty, style, sophistication, and elegance. For instance, a sales clerk in any other country may see their job as simply selling clothes. In France, however, they see their role as helping others find beauty and elegance.
Despite the French’s stylish way of life, they have encountered diverse cultures, and in doing so, they have also developed an environment for economic growth like any other country.
As of 2023, France is still classified as a high-income country and is the seventh-largest economy in the world when measured by nominal GDP. In 2022, France outperformed other countries in attracting foreign investments with over 1700 new projects. In 2020, France had 31 companies that ranked among the top 500 companies in the world by revenue, surpassing Germany and the United Kingdom. Three concrete examples from the French stock market index, CAC 40 (Cotation Assistée en Continu), are LVMH, HERMÈS and L’Oréal.
The French culture is one of the most renowned cultures in the world. Knowing how the French perceive the world can increase the likelihood of achieving good business objectives. Here are some helpful tips for businesspersons to consider regarding France’s business culture.
Dos
Don’ts
Certainly, France has a rich culture that cannot be fully described here. Instead, this is an attempt to pique curiosity about what France has to offer to the world.
The French Accounting standards, the Normes Comptables Françaises (NCF), are obligatory for businesses operating on the French market. The NCF are regulated by the Autorité des Normes Comptable (ANC), which operates under the authority of the French Ministry of Finance. Although the NCF are based on the International Financial Reporting Standards (IFRS), the standards differ in several aspects. For example, the NCF are based on the principle of prudence, according to which all potential losses and liabilities must be recognized, even if they are unlikely to occur. French Accounting standards can therefore be more complex than accounting standards in other parts of the world.
In countries such as France, Spain, and Italy, local authorities require companies to have a purchase management account. This helps to keep a record of journal entries from goods receipts from supplier posting and an inventory change account at the same time. Below is how SAP provides a solution for purchase account management that enables companies to fulfill this requirement. The following chart show 4 main activities for the general configuration:
In certain countries, when an invoice is issued, the taxes are not immediately recognized. The recognition of taxes only occurs when payment is actually made and this is known as Deferred Taxes. With the deferred tax function, taxes are not declared to authorities until payment is made. The following illustration shows the posting logic and the respective business transaction:
Companies in France are legally required to report export and accounting transaction data for each fiscal year. This can be done by using the Audit File or “Fichier des écritures comptables (FEC)”.
This function of the system assists you in generating an optimized overview of the FEC before submitting it to legal authorities on time. This feature helps you stay ahead of deadlines and ensures that your submissions are error-free.
To set up the audit file in your SAP-System you have to maintain the 14-digit SIRET (Système d’identification du epertoire des établissements) number for the relevant company codes. In addition you have to choose the respective reporting entity and reporting category.
An SAP implementation in France requires attention to specific legal, accounting and tax requirements. Within the European Union it is one of the countries which has a higher complexity because of many localization topics to cover especially in the finance domain. We outlined three finance topics to address but there are further relevant topics e.g. Alternative Chart of Account, deprecation methods in asset accounting and certain legal reportings.
BSP possesses not only technical proficiency, but also established methodologies and management techniques to guarantee a successful execution of your project.
If you would like to know more, please feel free to contact us.
Reference List:
Cultural Atlas, (2023). French Culture. Retrieved from
https://culturalatlas.sbs.com.au/french-culture/french-culture-do-s-and-don-ts#french-culture-do-s-and-don-ts
Owolade, T. (November 18, 2023). Much as it galls the French, English has become Europe’s cultural lingua franca. Retrieved from
https://www.theguardian.com/commentisfree/2023/nov/18/it-galls-the-french-but-english-has-become-europe-cultural-lingua-franca
Rapaille, C. (2015). The global code: How a new culture of universal values is reshaping business and marketing. Macmillan.
SAP. (February 9, 2024). Purchase account management. Retrieved from
https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/75495020c98044c18c39f47b2f1b1a72/3670b6531de6b64ce10000000a174cb4.html
