3.7 Luxembourg PCN Account Numbering System and Transaction Mapping

PCN Account Numbering Structure

The Plan Comptable Normalisé uses a 6-digit numbering system organized into seven classes:

Structure:

• First digit (1-7): Account class
• Remaining digits (00-99): Specific account within class
• Format: XXXXXX (e.g., 510000)

Account Class Ranges

Class	Range	Description
1	100000-199999	Capital, Provisions, Financial Debts
2	200000-299999	Fixed Assets and Establishment Costs
3	300000-399999	Inventory Accounts
4	400000-499999	Third-Party Accounts
5	500000-599999	Financial Accounts (Cash, Banks)
6	600000-699999	Expense Accounts
7	700000-799999	Revenue Accounts

Sub-Account Numbering

Businesses can create sub-accounts for detailed tracking:

Example:

• 410000: Accounts Receivable (general)
• 410001: Accounts Receivable - Customer A
• 410002: Accounts Receivable - Customer B
• 410003: Accounts Receivable - Customer C

Transaction Mapping to PCN

When recording transactions, you must identify the correct PCN accounts:

Mapping Process

1. Identify transaction type
2. Determine accounts affected
3. Find PCN account numbers
4. Verify account classification
5. Record with proper numbers

Common Transaction Mappings

Cash Sales

Transaction: Sell goods for €1,000 cash (excluding VAT), VAT 17%

PCN Mapping:

• Cash received: 510000 (Class 5 - Financial Accounts)
• Sales Revenue: 700000 (Class 7 - Revenue Accounts)
• VAT Payable: 430000 (Class 4 - Tax Authorities)

Journal Entry:

510000 Cash                       €1,170
700000 Sales Revenue                         €1,000
430000 VAT Payable                              €170

Credit Purchases

Transaction: Purchase inventory €2,000 on credit (excluding VAT), VAT 17%, recoverable

PCN Mapping:

• Inventory: 321000 (Class 3 - Inventory)
• VAT Recoverable: 431000 (Class 4 - Tax Authorities)
• Accounts Payable: 400000 (Class 4 - Suppliers)

Journal Entry:

321000 Inventory                 €2,000
431000 VAT Recoverable             €340
400000 Accounts Payable                         €2,340

Expense Payments

Transaction: Pay €500 utilities expense

PCN Mapping:

• Utilities Expense: 615000 (Class 6 - External Services)
• Cash: 510000 (Class 5 - Financial Accounts)

Journal Entry:

615000 Utilities Expense          €500
510000 Cash                                  €500

Equipment Purchase

Transaction: Purchase €10,000 equipment, paying €3,000 cash and €7,000 note

PCN Mapping:

• Equipment: 223000 (Class 2 - Tangible Assets)
• Cash: 510000 (Class 5 - Financial Accounts)
• Notes Payable: 120000 (Class 1 - Financial Debts)

Journal Entry:

223000 Equipment                 €10,000
510000 Cash                                   €3,000
120000 Notes Payable                          €7,000

PCN Account Lookup

When unsure of PCN account number:

1. Identify account class (1-7)
2. Determine account type within class
3. Consult PCN reference (see Appendix A)
4. Verify with accountant or fiduciaire
5. Document decision for consistency

Customizing Chart of Accounts

While PCN provides standard accounts, businesses can:

• Add sub-accounts for detail (e.g., 510001, 510002 for different bank accounts)
• Use account ranges within classes
• Maintain consistency across periods

Important: Must stay within PCN class structure and numbering system.

Luxembourg Compliance Note

All transactions must be recorded using PCN account numbers. This ensures:

• Consistency across businesses
• Proper classification
• Compliance with regulations
• Accurate financial reporting
• Ease of audit and review

Software like Sage BOB includes PCN account numbers, making compliance easier.

Think It Through

A Luxembourg business receives a bank loan of €25,000. Which PCN accounts are affected? What are the account numbers and classes?

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