Setting up a French legal entity to operate under the FR mandate

Electronic invoicing in France is built around a decentralized CTC model where domestic B2B invoices must be exchanged and messages called "lifecycle status" must be sent between the buyer and the seller in response to some business events. This implies that a French company will be sending and received electronic communications through the life of each invoice from posting and, eventually, being paid. The sending and receiveing of the communication will be done using ExFlow e-Invoicing with Pagero integration and will require setting up 3 main areas:

1. Microsoft D365 Finance data regarding the legal entity, its customers and its vendors to assure the transactions are posted according to the rules set by French accounting and French e-invoicing mandate.
2. ExFlow Document Integration and ExFlow AP module to assure data posted in D365 Finance is gathered and send/receive from business partners via Pagero.
3. Pagero system to assure that e-invoices can be correctly routed and archived.

The French reform also includes e-reporting obligations and these obligations will be fulfilled using standard D365 Finance functionality provided by Microsoft, hence the legal company must be correctly setup as per point 1 above.

Below is a high-level overview of how it works with ExFlow E-Invoicing and Pagero integration.

Legal and technical prerequisites

• Validate the D365 Finance application version and build used by the customer. Microsoft France e-invoicing and e-reporting capabilities are delivered through recent D365 Finance releases and the required setup depends on the version and feature availability.

• Do not mix the Microsoft standard France connector setup with the ExFlow/Pagero setup unless this has been explicitly agreed in this documentation. Microsoft standard documentation may describe Microsoft-provided French e-invoicing features and a standard PA connector, while this page describes the ExFlow Document Integration process with Pagero.

• Assure your Pagero account is enabled for France and contains the required PA onboarding, company identifiers, technical connection data and routing setup.

Microsoft setup

• The invoice XML generation is done using Microsoft D365 Finance Electronic Reporting technology. Therefore, Electronic Reporting must be enabled and the required ER configurations must be imported from Dataverse and tested before sending invoices to Pagero.

• Follow the steps described in Microsoft D365 Finance documentation to assure the invoice xml is generated according to FR mandate. Test that your specific business invoice processes are supported by Microsoft ER Configuration.

Clarify internal tax and routing data

Ensure you know for the French legal entity as describe here: https://learn.microsoft.com/en-us/dynamics365/finance/localizations/france/emea-fra-einv-ereport?context=/dynamics365/context/finance#set-up-registration-numbers https://learn.microsoft.com/en-us/dynamics365/finance/localizations/france/emea-fra-einv-ereport?context=/dynamics365/context/finance#configure-legal-entity-data

• French VAT number.

• SIREN number.

• SIRET number for each establishment used in invoicing or reporting.

• Electronic invoicing address used to receive invoices.

• Electronic address used to receive lifecycle statuses for issued invoices, if different.

• PA assignment and validity period in the French Directory.

• VAT regime and whether VAT is payable on debits or on payment receipt, since this impacts payment reporting and the Payment received status.

For customers and vendors: https://learn.microsoft.com/en-us/dynamics365/finance/localizations/france/emea-fra-einv-ereport?context=/dynamics365/context/finance#configure-customer-data

• Country/region and VAT registration status.

• SIREN, SIRET and routing code where applicable.

• Electronic invoicing address registered in the French Directory for domestic B2B customers and vendors.

• VAT number or foreign registration identifier for cross-border counterparties.

• Classification of the transaction as domestic B2B e-invoicing, B2G, cross-border B2B, B2C or payment reporting.

Configure mandatory notes Sales order and Free text invoices: https://learn.microsoft.com/en-us/dynamics365/finance/localizations/france/emea-fra-einv-ereport?context=/dynamics365/context/finance#configure-mandatory-notes

Project invoices: https://learn.microsoft.com/en-us/dynamics365/finance/localizations/france/emea-fra-einv-ereport?context=/dynamics365/context/finance#configure-mandatory-notes-for-project-invoices

ExFlow setup

• Make sure ExFlow Document Integration is fully set up for Pagero integration as described in the Pagero Service page: ExFlow document integration / Setup / Shared parameters ExFlow document integration / Setup / Parameters ExFlow document integration / Setup / Export setup

• Make sure the legal entity is configured for CTC and French mandate flows where required: ExFlow document integration / Setup / Parameters / General ExFlow document integration / Setup / Lifecycle status

Lifecycle status

France requires lifecycle status handling for invoice transmission and business processing.

The minimum mandatory scope includes:

• Submitted / Filed: the invoice has been received and validated by the PA.

• Rejected: the invoice has failed technical, format, validation or routing checks.

• Refused: the buyer refuses the invoice for business reasons.

• Payment received: the supplier confirms that payment has been received where the status or payment reporting is required.

Additional statuses may be used depending on the customer scope, such as Made available, Received, Approved, Partially approved, Disputed, Suspended, Completed and Payment transmitted. ExFlow Document Integration exposes acknowledgements, errors and lifecycle history so the user can monitor the document and take corrective action where required.

Open ExFlow document integration | Setup | Lifecycle status

In the Overview tab:

Field	Description
Code	Contains the lifecycle status code as determined by the French AFNOR: (mandatory) 200, 210, 212, 213 (optional) 204, 205, 206,207,208, 209, 211
Description	Contains the standard text for the status code as defined by AFNOR
PA status	Contains the code used by Pagero for that status. Combination of PA status and Description is used to provide user information
Automated	Sets if the status will be sent automatically by a batch job
ER Configuration	Sets the Electronic reporting configuration that will be used to generate the xml message

Some of the codes require a predefined list of motives as stated by AFNOR. The code motives can be entered by selecting the code and then "Motives" in the menu. Alternatively, Excel can be used to populate or edit this page.

Truvio ExFlow AP automation

WIP
add here about the vendor ids. and script that needs to be run.

Common D365 Finance localization & master data

Import the Microsoft provided configurations from Dataverse for the xml invoice generation and the Truvio provided ER configurations for the lifecycle status xml generation and verify they are confirmed as compatible with the project scope and the Pagero integration.

Go to Organization administration / Electronic reporting / Configurations and assure that all required parent ER configurations are available.

Validation, error handling and resubmission

If Pagero or PPF validation fails, the document or report is not considered successfully processed.

The user must:

1. Review the error in ExFlow Document Integration.

2. Use Communication log and Error information to identify the root cause.

3. Correct the data in D365 Finance or in the relevant ExFlow setup.

4. Regenerate the ER output where required.

5. Resubmit the document or report from ExFlow Document Integration.

Typical correction areas include missing SIREN/SIRET, invalid routing address, incorrect VAT setup, missing tax exemption reason, invalid XML content or unsupported document classification.