Account 4386 – Social organizations – Other charges payable
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Account Description 4386
Account 4386 “Social organizations – Other accrued expenses” is a liability account . It is used to record the company’s debts to social organizations. These are accrued expenses not covered by the other sub-accounts of account 438 entitled “Social organizations – Accrued expenses and accrued income” such as:
Account 4382 “Social security charges on leave to be paid”;
Account 4387 “Accrued income”.
For information purposes, these may refer to:
Exceptional social charges ;
Penalties or increases for late payment of social security contributions;
Etc.
Examples: the apprenticeship tax to be paid to URSSAF, the social contributions which are added when there is a balance sheet bonus , etc.Note: account 4386 allows compliance with the famous accounting principle of “independence of financial years” and ensures that accrued expenses are recorded in the financial year to which they relate, even if they have not yet been paid at the time of the financial year-end.
Rules related to account 4386
As seen previously, account 4386 “Social organizations – Other charges payable” is used to record specific social debts , namely those which do not fall under the other subdivisions of account 438. Examples: exceptional social charges.
Then, the charges to be paid recorded in account 4386 must be attached to the financial year to which they relate , even if their payment is planned for a later date.
The operation of account 4386 is as follows:
It is credited at the time of recording the debt to the social body in question;
It is debited upon actual payment of the amount due.
Finally, each accounting entry recorded in this account must be supported by clear documentation (supporting documents, etc.).
Attention! Account 4386 is a transitory account . This means that it is used to temporarily record social security contributions to be paid. Once the debt is paid, it must be settled, generally to the benefit of account 512 "Bank".
