Accounting for employee training costs

Employee training costs may be considered as fees in account 6228, miscellaneous expenses, account 6188 or miscellaneous remuneration, account 641, as the case may be.

Whether they are called personal training account (CPF), professional transition project or training leave, there are many devices.

Depending on the logic chosen, the accounting account for training is not necessarily the same. It also differs from one doctrine to another, depending on whether you are working with the Accounting Memento or another source. Several solutions are possible, each with its own logic.

In addition, when they constitute a payment in full discharge, the training costs will be assimilated to the CUFPA which they reduce. This contribution to training is recorded in account 6333 Single employer contribution to vocational training.

Feedback on the recognition of employee training costs

Training costs and valuation of a tangible or intangible fixed asset

The valuation of the entry cost of tangible and intangible fixed assets can now take into account optional training costs.

These training costs are the external costs that are incurred for the commissioning of the asset.

According to ANC regulation n°2019-09 which modifies the general chart of accounts, they can now be attached to the acquisition cost of a tangible or intangible fixed asset.

Information is provided in the appendix to the annual accounts.

Incorporation of training costs in the acquisition cost of fixed assets on option

How to account for training?

Employee training is in principle recognized in an expense account (external services).

When incurred as part of the commissioning of a tangible or intangible fixed asset, an option for incorporation at acquisition cost is possible.

Accounting for external training costs for employees: 6228 or 633 or 6188

When training costs are not associated with the acquisition of a fixed asset or when the option is not exercised, opinions may differ.

Two situations are to be distinguished depending on whether or not there is support by a joint body.

Which account for employee training: 622 or 633?

When the company receives compensation for the training

Training costs are to be recorded as a debit to account 6228 Remuneration of intermediaries and fees (in external services) when the company benefits from a consideration and not to account 6333 which remains a tax and duties account.

Only training expenses considered as discharges and which could be deducted from participation in continuing vocational training could be included in account 63.

When the company does not benefit from any consideration for the training

When the employee uses his CPF account or in the context of a dismissal or a resignation, the company does not always benefit from compensation for the training carried out.

In these situations, training costs can then be accounted for by debiting account 6281 Miscellaneous, supplemented by account 44566 deductible VAT if applicable, and crediting account 401 Suppliers.

Example of accounting for training costs

A company uses an independent trainer or a training organization to train around ten employees in the new ERP. She rents a room for the few days of training (account 6132). The rent amounts to 2,000€, it is subject to VAT.

The trainer invoices a total of €15,000 including tax.

Accounting for the remuneration of the employee in training: 641 and 645

The remuneration of the employee in training is counted as the rest of his remuneration. It will be part of the salary OD, the salary accounting entry.

These sums will generally be drowned in accounts 641 and 645 depending on whether it is gross salary or social charges.

The alternative solution: account 648 Other personnel expenses

Not everyone considers staff training costs to be miscellaneous costs or fees.

Some also book them in account 648 Other staff costs in order to bring together, under root 64, all staff-related costs.