RFA accounting: complete guide 2026

Updated April 4, 2026 - The Accounting RFA is one of the most technical subjects of the annual closing. Behind this acronym hides the end-of-year discount (or end-of-year rebate), a commercial reduction granted retrospectively depending on the volume of business carried out between a supplier and its customer. In 2026, with the tightening of tax controls and new documentary traceability requirements, mastering the accounting, tax and VAT treatment of RFAs is no longer optional. At Hayot Expertise, we support dozens of SMEs and merchants each year in securing their end-of-year discounts.

Quick answer: in RFA accounting, the end-of-year discount is recorded in account 609 (RRR obtained on purchases) on the customer side and in account 709 (RRR granted on sales) on the supplier side. If the credit note has not yet been issued or received by December 31, a regularization entry via accounts 4098 or 4198 is mandatory to respect the principle of attaching expenses and income to the financial year (ANC regulation no. 2014-03, article 311-1 of the PCG).

The end of year discount (RFA), also called end of year discount, is a price reduction granted by a supplier to its customer once the référence period has expired. Unlike an immediate discount applied to the invoice, the RFA is calculated on the total volume of transactions carried out over the calendar year or financial year.

Its objective is twofold: to build loyalty with the commercial partner and to encourage an increase in order volumes. These discounts are particularly common in large-scale distribution, industry, wholesale and purchasing centers.

To extend, see Account 467, Irrecoverable debt: proof, VAT and accounting and Taxation and déclarations: VAT, IS, installments.

RFA, rebate, discount, rebate: what are the differences?#

The General Accounting Plan groups these reductions under the acronym RRR (rebates, rebates, rebates), but each notion responds to a distinct logic:

• The discount: exceptional reduction granted to compensate for a quality defect, non-compliance or delivery delay. This is a one-off commercial gesture.
• Discount: reduction applied directly to the invoice, linked to the volume of a single order or to the usual loyalty of a customer.
• The rebate (RFA): reduction calculated a posteriori on the overall volume of transactions for a period. It is the subject of a credit note separate from the initial invoices. This distinction is not just a semantic detail. It determines the accounting account to use, the time of recognition and the tax treatment.

An end-of-year rebate simultaneously impacts several dimensions of your commercial accounting:

• the turnover (supplier rating) or the purchasing expenses (customer rating);
• the VAT collected or deducted, which must be regularized;
• the closing of the financial year, with the risk of being linked to the wrong financial year;
• third party accounts (customers, suppliers) and regularization accounts.

The main trap lies in the time difference: the RFA relates to financial year N, but the credit note is often only issued or received in January N+1. The principle of attaching expenses and income to the financial year (article 311-1 of the PCG, ANC regulation no. 2014-03) requires the RFA to be recorded in the accounts of the financial year to which it relates, even in the absence of physical assets.

Hayot Expertise Advice: a poorly documented end-of-year discount is almost always poorly recorded. The central point is not only the account used, but proof of the right to the reduction and its correct attachment period. Systematically keep the commercial agreement, the volume statement and the corresponding credit note.

The calculation of an RFA is based on a contractual rate applied to the turnover excluding tax achieved with the partner over the référence period. Some contracts provide for progressive scales with différent rates depending on the levels reached.

Basic formula: RFA amount (excluding tax) = Annual turnover excluding tax × contractual rate

Concrete example with progressive scale#

The company Martin SARL makes €200,000 of purchases excluding tax from its main supplier. The RFA agreement provides:

• 2% on the bracket from €50,000 to €100,000
• 3% beyond €100,000

Detailed calculation:

VAT a 20%: €800 | Amount of credit including tax: €4,800

This type of progressive scale is very common in supplier-distributor relationships. It encourages the customer to increase their volumes to benefit from more advantageous rates.

For the company which benefits from the rebate, it represents a reduction in its purchasing costs. It does not in any way constitute a product to be registered.

Case 1: the credit note is received before closing#

On receipt of the credit from the supplier, you record the following entry:

Account 609 is deducted from the purchasing expense accounts (601, 602, 607). The déductible VAT is reduced by the corresponding amount.

Case 2: the credit has not yet been received on December 31#

This is the most common case. The supplier will issue the credit in January, but the RFA is acquired on December 31. You must note a non-received invoice via account 4098 – RRR to obtain:

Important: this entry must be reversed to January 1 of the following financial year (reversed in reverse) before entering the actual credit upon receipt. Without this reversal, you risk recording the same reduction twice, which would distort your accounts.

For the company granting the rebate, this represents a reduction in its net turnover. This is not an additional charge.

Case 1: the credit note is issued before closing#

When issuing the credit note, you record:

Account 709 is deducted from the product accounts (701, 706, 707). The VAT collected is adjusted downward.

Case 2: the credit note has not yet been issued on December 31#

You must establish a credit to be established via the account 4198 – RRR to be granted:

The reversal on January 1st is also mandatory before the final credit is issued.

VAT on end-of-year discounts follows precise rules defined by BOFiP (BOI-TVA-BASE-10-20-10). The taxable base for VAT is the price actually paid by the buyer. When an RFA reduces this price after invoicing, the VAT initially calculated is too high and must be corrected.

Supplier rating#

The issuance of the RFA credit reduces the VAT collected. This correction is charged on the VAT déclaration for the month of issue of the credit. The tax base falls accordingly.

Customer rating#

Receipt of the credit reduces the déductible VAT. You must regularize your VAT déclaration for the month of receipt by reducing the déductible VAT by the amount indicated on the credit note.

Special case: the franchise based on VAT#

If your business benefits from the VAT-based franchise (micro-enterprise or special régime), you do not collect VAT and do not deduct it. In this case, the RFA has no VAT consequences. The credit note does not mention any VAT amount, and the accounting entry only involves accounts 609 or 709 and the third party account.

Hayot Expertise Advice: the RFA credit note must mention the amount excluding tax of the rebate and the amount of the corresponding VAT. An incomplete credit may be rejected by the tax administration during an audit, which would result in a VAT refund and penalties.

Since the reform of the law on commercial practices, any end-of-year discount must be formalized in a written agreement concluded between the supplier and the customer (article L441-3 of the Commercial Code). This agreement must specify:

• the grant conditions (turnover threshold, progressive scale);
• the applicable rate or amount;
• the référence period (generally the calendar year);
• payment terms (credit note, bank transfer).

Without a written agreement, the RFA cannot be demanded by the client and its accounting deductibility is weakened. On the supplier's side, granting a rebate without a contractual basis exposes itself to reclassification by the tax administration.

Here is the checklist we recommend to our clients before each annual closing:

If you are a customer (buyer):#

• has the RFA threshold provided for in your agreement been reached?
• have you received the credit from the supplier? If so, is it already accounted for?
• otherwise, have you noted the RFA acquired via account 4098?
• have you correctly regularized your déductible VAT?
• is the estimate of the amount documented and defensible?

If you are a supplier (seller):#

• which customers have reached their contractual threshold?
• have you issued all RFA assets?
• if not, have you noted the assets to be established via account 4198?
• have you regularized your VAT collected on each pending credit?
• are the commercial agreements up to date and signed?

We regularly see the same pitfalls during our support missions:

• Premature observation: register an RFA before the right is certain (threshold not reached at closing).
• Forgetting the VAT impact: not regularizing the déductible or collected VAT, which creates a déclaration gap.
• Suspense account without regularization: use a transitional account (467, 471) without ever requalifying the entry.
• No reversal: do not reverse the closing entry on January 1, which doubles the accounting.
• Confusion between commercial reduction and dispute: treat a rebate for non-compliance as an RFA, or vice versa.
• Missing commercial agreement: granting or receiving an RFA without a written contractual basis, which weakens the position in the event of a tax audit.

We can help you reread commercial agreements, validate the connection to the correct financial year and secure the accounting and VAT treatment of your end-of-year rebates.

Quick link: Make your accounting and tax closing more reliable

RFA accounting is a classic but technical subject of annual closing. Well handled, the end-of-year discount faithfully reflects the commercial reality between the supplier and its customer. Poorly managed, it creates discrepancies in results, VAT anomalies and documentary weaknesses which can be punished during a tax audit.

Key points to remember:

• the RFA is recorded in account 609 on the customer side and in account 709 on the supplier side;
• in the absence of credit on December 31, a regularization entry via accounts 4098 or 4198 is mandatory;
• the VAT must be regularized on the déclaration of the month of receipt or issue of the credit note;
• a written commercial agreement is essential to secure the FRG from a tax perspective;
• the reversal on January 1st is mandatory to avoid any double counting. Whether you are an SME manager, trader or administrative and financial manager, anticipating the processing of your end-of-year rebates is a guarantee of accounting reliability and peace of mind in the face of controls.

(Official sources: ANC Regulation No. 2014-03 relating to the PCG, article 311-1; BOI-TVA-BASE-10-20-10 on price reductions; Commercial Code, article L441-3; Service-Public.fr - Calculation of tax results)