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2.4 Luxembourg PCN Account Classifications (Classes 1-7)

Understanding PCN Structure​

The Plan Comptable Normalisé (PCN) is Luxembourg's standardized chart of accounts. All businesses must use PCN classifications when preparing financial statements. PCN 2020 organizes accounts into seven main classes.

Class 1: Capital Accounts, Provisions, and Financial Debts (100000-199999)​

Purpose: Accounts related to ownership, reserves, and long-term financing

Key Accounts:

  • 101000: Share Capital (Capital Social)
  • 102000: Share Premium (Prime d'Émission)
  • 103000: Reserves (Réserves)
  • 104000: Retained Earnings (Bénéfices Reportés)
  • 105000: Current Year Profit/Loss (Résultat de l'Exercice)
  • 110000-119999: Provisions (Provisions)
  • 120000-129999: Financial Debts (Dettes Financières)

Appears on: Balance Sheet (Equity and Long-Term Liabilities sections)

Example: A SARL with €50,000 share capital and €20,000 retained earnings would show:

  • Class 1 accounts on Balance Sheet under Equity

Class 2: Fixed Assets and Establishment Costs (200000-299999)​

Purpose: Long-term assets and startup costs

Key Accounts:

  • 200000-209999: Establishment Costs (Frais d'Établissement)
  • 210000-219999: Intangible Assets (Immobilisations Incorporelles)
  • 220000-229999: Tangible Assets (Immobilisations Corporelles)
    • 220000: Land (Terrains)
    • 221000: Buildings (Bâtiments)
    • 223000: Machinery and Equipment (Matériel)
    • 224000: Vehicles (Véhicules)
  • 230000-239999: Financial Fixed Assets (Immobilisations Financières)
  • 240000-249999: Accumulated Depreciation (Amortissements)

Appears on: Balance Sheet (Noncurrent Assets section)

Example: Restaurant equipment (€30,000) is classified as:

  • 223000: Machinery and Equipment (Class 2)

Class 3: Inventory Accounts (300000-399999)​

Purpose: Goods and materials held for sale or production

Key Accounts:

  • 300000-309999: Raw Materials (Matières Premières)
  • 310000-319999: Work in Progress (En Cours de Fabrication)
  • 320000-329999: Finished Goods (Produits Finis)
  • 321000: Merchandise (Marchandises)

Appears on: Balance Sheet (Current Assets section)

Example: A retail store's inventory of €25,000 is classified as:

  • 321000: Merchandise (Class 3)

Class 4: Third-Party Accounts (400000-499999)​

Purpose: Accounts with customers, suppliers, employees, and tax authorities

Key Accounts:

  • 400000-409999: Suppliers (Fournisseurs)
    • 400000: Trade Payables
  • 410000-419999: Customers (Clients)
    • 410000: Trade Receivables
  • 420000-429999: Social Security (Sécurité Sociale)
    • 420000: Social Security Payable
  • 430000-439999: Tax Authorities (Administrations Fiscales)
    • 430000: VAT Payable (TVA à Payer)
    • 431000: VAT Recoverable (TVA Récupérable)
    • 432000: Income Tax Payable
  • 440000-449999: Personnel (Personnel)
    • 440000: Salaries Payable
  • 450000-499999: Other Third Parties

Appears on: Balance Sheet (Current Assets and Current Liabilities sections)

Example:

  • €15,000 owed by customers: 410000 (Class 4 - Current Asset)
  • €8,000 owed to suppliers: 400000 (Class 4 - Current Liability)
  • €2,000 VAT payable: 430000 (Class 4 - Current Liability)

Class 5: Financial Accounts (500000-599999)​

Purpose: Cash and bank accounts

Key Accounts:

  • 500000-509999: Cash (Liquidités)
    • 500000: Petty Cash (Caisse)
    • 501000: Cash on Hand
  • 510000-519999: Bank Accounts (Comptes Bancaires)
    • 510000: Current Account (Compte Courant)
    • 512000: Payment Cards/Cetrel Account
  • 520000-529999: Financial Instruments (Valeurs Mobilières)
  • 530000-539999: Other Financial Accounts

Appears on: Balance Sheet (Current Assets section)

Example:

  • €25,000 in bank account: 510000 (Class 5 - Current Asset)
  • €500 petty cash: 500000 (Class 5 - Current Asset)

Class 6: Expense Accounts (600000-699999)​

Purpose: All business expenses

Key Accounts:

  • 600000-609999: Purchases (Achats)
    • 602000: Merchandise Purchases
  • 610000-619999: External Services (Services Extérieurs)
    • 611000: Professional Services
    • 612000: Rent (Loyers)
    • 613000: Insurance (Assurances)
    • 615000: Utilities (Services Publics)
    • 619000: Other External Services
  • 620000-629999: Personnel Expenses (Charges de Personnel)
    • 620000: Salaries (Salaires)
    • 621000: Social Charges (Employer portion)
  • 630000-639999: Taxes (Impôts et Taxes)
  • 640000-649999: Depreciation (Amortissements)
  • 650000-659999: Other Operating Expenses
  • 660000-669999: Financial Expenses (Charges Financières)
    • 660000: Interest Expense

Appears on: Income Statement (Expenses section)

Example:

  • €25,000 salaries: 620000 (Class 6 - Expense)
  • €6,000 rent: 612000 (Class 6 - Expense)
  • €1,500 utilities: 615000 (Class 6 - Expense)

Class 7: Revenue Accounts (700000-799999)​

Purpose: All business revenues

Key Accounts:

  • 700000-709999: Sales (Ventes)
    • 700000: Sales of Goods
    • 701000: Sales of Services
  • 710000-719999: Production (Production)
  • 720000-729999: Other Operating Revenue
  • 730000-739999: Financial Revenue (Produits Financiers)
    • 730000: Interest Income

Appears on: Income Statement (Revenue section)

Example:

  • €50,000 service revenue: 701000 (Class 7 - Revenue)

PCN and Financial Statement Preparation​

When preparing financial statements in Luxembourg:

  1. All accounts must be classified according to PCN
  2. Account numbers should be shown (in parentheses or separate column)
  3. Statements must follow PCN format for presentation
  4. Account descriptions should use PCN terminology

Luxembourg Compliance Note​

All financial statements filed with RCS must:

  • Use PCN account classifications
  • Follow PCN presentation format
  • Include proper account numbers
  • Use PCN terminology (in French, German, or English)

Non-compliance can result in rejection of filing and penalties.