Account 706 — services revenue
706 is the revenue account of a business that sells time and expertise rather than goods: consulting, maintenance, agency work, training, development.
What account 706 is for
Account 706 belongs to class 7 of the French Plan Comptable Général, the revenue accounts. It is credited with the net amount of every sales invoice for a service. Output VAT goes to 44571, and the gross total debits the customer account 411.
The direction is the mirror of an expense account: revenue accounts are credited when the business earns. A debited 706 normally means a customer credit note, not a sale.
706, 707 or 704: picking the right revenue account
The PCG distinguishes revenue by nature. 707 records sales of goods bought for resale in the same state. 704 records construction-type work. 706 records services: everything that is neither resold goods nor building work.
The split is not cosmetic. It drives the layout of the income statement, the gross-margin calculation — which only makes sense on 707 — and, for French micro-entreprises, the applicable tax regime and turnover threshold.
Cut-off
A service belongs to the period in which it is performed, not the one in which it is billed or collected. Work finished in December and invoiced in January belongs to the earlier year: it is accrued through account 418 (invoices to be issued) against 706. Conversely, a service billed in advance is deferred through account 487.
Entry 1 — service invoice at 20%
A consulting engagement billed at EUR 3,000.00 net, 20% VAT, EUR 3,600.00 gross. The customer is debited gross; revenue and tax are credited separately.
| Account | Label | Debit | Credit |
|---|---|---|---|
| 411 | Trade receivables — DUPONT SAS | 3,600.00 | — |
| 706 | Services revenue | — | 3,000.00 |
| 44571 | Output VAT | — | 600.00 |
Entry 2 — cash collection
Payment never touches 706: revenue was recognised when the invoice was issued. Collection only clears the receivable against the bank.
| Account | Label | Debit | Credit |
|---|---|---|---|
| 512 | Bank | 3,600.00 | — |
| 411 | Trade receivables — DUPONT SAS | — | 3,600.00 |
Entry 3 — credit note on a service
A goodwill gesture or a cancelled engagement produces a credit note. The entry mirrors the invoice exactly: 706 is debited, output VAT is reversed, and the customer account is credited. A credit note is never posted as an expense.
| Account | Label | Debit | Credit |
|---|---|---|---|
| 706 | Services revenue | 500.00 | — |
| 44571 | Output VAT | 100.00 | — |
| 411 | Trade receivables — DUPONT SAS | — | 600.00 |
How Comptyx posts 706
In sales mode, Comptyx reads the issued invoice and builds the entry on the file's own chart: customer account debited gross, revenue credited net, output VAT credited. The choice between 706 and 707 follows the item category detected on the document, and stays editable line by line before export.
The entry is checked for balance before it is shown, then exports to FEC, Sage, DATEV, ContaPlus, QuickBooks, Xero, XLSX or CSV.
What is the difference between account 706 and account 707?
707 records sales of goods bought for resale in the same state; 706 records services. The distinction drives the gross-margin calculation, which only applies to goods.
Is account 706 debited or credited?
It is credited with the net amount when the invoice is issued. It is debited only to cancel or reduce revenue already recognised, typically through a credit note.
A service performed in December but invoiced in January — which year?
December's. A service belongs to the period in which it is performed: 706 is credited at year-end against account 418, invoices to be issued, and cleared when the invoice goes out.
Should account 706 be split by activity?
It is common and advisable as soon as a business has several service lines: 7061, 7062 and so on. The PCG allows it, and it saves rebuilding the revenue breakdown by hand at year-end.
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