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Appendix G: Quick Reference Guides

Overview​

This appendix provides quick reference tools and templates for common accounting tasks in Luxembourg SMEs.

Contents​

  1. Journal Entry Templates
  2. VAT Calculation Worksheets
  3. Payroll Calculation Tools
  4. Financial Ratio Formulas
  5. PCN Account Quick Reference
  6. Common Transaction Mappings

1. Journal Entry Templates​

Sales Transaction (with VAT)​

Cash Sale:

Debit:  530000 Cash                    €1,170.00
Credit: 701000 Sales Revenue          €1,000.00
Credit: 430000 VAT Payable (17%)       €170.00

Credit Sale:

Debit:  410000 Accounts Receivable     €1,170.00
Credit: 701000 Sales Revenue          €1,000.00
Credit: 430000 VAT Payable (17%)       €170.00

Purchase Transaction (with VAT)​

Cash Purchase:

Debit:  602000 Purchases              €1,000.00
Debit:  431000 VAT Recoverable (17%)  €170.00
Credit: 530000 Cash                   €1,170.00

Credit Purchase:

Debit:  602000 Purchases              €1,000.00
Debit:  431000 VAT Recoverable (17%)  €170.00
Credit: 400000 Accounts Payable       €1,170.00

Restaurant Sale (3% VAT - Dine-In)​

Debit:  512000 Bank (Cetrel)          €103.00
Credit: 701000 Sales Revenue          €100.00
Credit: 430000 VAT Payable (3%)        €3.00

Payroll Entry​

Debit:  620000 Salaries               €5,000.00
Debit:  621000 Social Charges (Emp)  €1,500.00
Credit: 440000 Salaries Payable       €4,000.00
Credit: 420000 Social Security        €2,500.00

Depreciation Entry​

Debit:  640000 Depreciation Expense   €500.00
Credit: 241000 Accum. Depreciation    €500.00

VAT Settlement​

Debit:  430000 VAT Payable            €1,000.00
Credit: 431000 VAT Recoverable        €800.00
Credit: 510000 Bank Account           €200.00

2. VAT Calculation Worksheets​

VAT Calculation Formula​

VAT Amount = Net Amount × VAT Rate

Total Amount = Net Amount + VAT Amount

Net Amount = Total Amount ÷ (1 + VAT Rate)

VAT Rate Quick Reference​

RateUse For
3%Restaurant food (dine-in), books, pharmaceuticals, food products
8%Restaurant food (takeaway), hotel accommodation, some services
14%Alcoholic beverages (restaurant), some goods
17%Most goods and services (standard rate)

VAT Calculation Examples​

Example 1: 17% VAT

  • Net Amount: €100.00
  • VAT (17%): €17.00
  • Total: €117.00

Example 2: 3% VAT (Restaurant)

  • Net Amount: €100.00
  • VAT (3%): €3.00
  • Total: €103.00

Example 3: Reverse Calculation

  • Total Amount: €117.00
  • VAT Rate: 17%
  • Net Amount: €117.00 ÷ 1.17 = €100.00
  • VAT Amount: €17.00

VAT Return Worksheet​

DescriptionOutput VATInput VATNet VAT
Sales (17%)€1,700.00
Sales (3%)€300.00
Purchases (17%)€850.00
Total€2,000.00€850.00€1,150.00
VAT to Pay€1,150.00

3. Payroll Calculation Tools​

Gross to Net Salary Calculation​

Employee Portion:

  • Health Insurance: 2.8% of gross
  • Pension: 8% of gross
  • Dependency Fund: 1.4% of gross
  • Total Employee: 12.2%

Employer Portion:

  • Health Insurance: 2.8% of gross
  • Pension: 8% of gross
  • Dependency Fund: 1.4% of gross
  • Accident Insurance: 0.5% of gross
  • Total Employer: 12.7%

Total Social Charges: 24.9% of gross salary

Payroll Calculation Example​

Gross Salary: €5,000.00

Employee Deductions:

  • Health Insurance (2.8%): €140.00
  • Pension (8%): €400.00
  • Dependency Fund (1.4%): €70.00
  • Total Deductions: €610.00

Net Salary: €4,390.00

Employer Costs:

  • Gross Salary: €5,000.00
  • Employer Social Charges (12.7%): €635.00
  • Total Cost: €5,635.00

Payroll Journal Entry Template​

Debit:  620000 Salaries               [Gross Salary]
Debit:  621000 Social Charges (Emp)   [Employer Portion]
Credit: 440000 Salaries Payable       [Net Salary]
Credit: 420000 Social Security        [Total Social Charges]

4. Financial Ratio Formulas​

Liquidity Ratios​

Current Ratio = Current Assets ÷ Current Liabilities

  • Good: > 1.5
  • Acceptable: 1.0 - 1.5
  • Poor: < 1.0

Quick Ratio = (Current Assets - Inventory) ÷ Current Liabilities

  • Good: > 1.0
  • Acceptable: 0.8 - 1.0
  • Poor: < 0.8

Profitability Ratios​

Gross Profit Margin = (Revenue - COGS) ÷ Revenue × 100

  • Restaurant: 60-70%
  • Retail: 40-50%
  • Services: 70-80%

Net Profit Margin = Net Income ÷ Revenue × 100

  • Good: > 10%
  • Acceptable: 5-10%
  • Poor: < 5%

Return on Assets (ROA) = Net Income ÷ Total Assets × 100

  • Good: > 10%
  • Acceptable: 5-10%

Return on Equity (ROE) = Net Income ÷ Equity × 100

  • Good: > 15%
  • Acceptable: 10-15%

Efficiency Ratios​

Inventory Turnover = COGS ÷ Average Inventory

  • Higher is better
  • Restaurant: 50-100 times/year
  • Retail: 4-8 times/year

Accounts Receivable Turnover = Revenue ÷ Average Accounts Receivable

  • Higher is better
  • Good: > 12 times/year

Days Sales Outstanding (DSO) = (Accounts Receivable ÷ Revenue) × 365

  • Lower is better
  • Good: < 30 days
  • Acceptable: 30-45 days

Solvency Ratios​

Debt to Equity = Total Liabilities ÷ Equity

  • Lower is better
  • Good: < 1.0
  • Acceptable: 1.0 - 2.0

Debt to Assets = Total Liabilities ÷ Total Assets

  • Lower is better
  • Good: < 0.5
  • Acceptable: 0.5 - 0.7

5. PCN Account Quick Reference​

Common Accounts by Category​

Assets:

  • 200000-299999: Fixed Assets
  • 300000-399999: Inventory
  • 410000-419999: Accounts Receivable
  • 500000-509999: Cash
  • 510000-519999: Bank Accounts

Liabilities:

  • 400000-409999: Accounts Payable
  • 420000-429999: Social Security
  • 430000-439999: Taxes (VAT, Income Tax)
  • 440000-449999: Payroll

Equity:

  • 100000-109999: Share Capital and Reserves
  • 105000: Current Year Profit/Loss

Expenses:

  • 600000-609999: Purchases
  • 610000-619999: External Services
  • 620000-629999: Personnel
  • 630000-639999: Taxes
  • 640000-649999: Depreciation

Revenue:

  • 700000-709999: Sales
  • 701000: Sales of Services
  • 730000-739999: Financial Revenue

VAT:

  • 430000: VAT Payable
  • 431000: VAT Recoverable

6. Common Transaction Mappings​

Restaurant Transactions​

TransactionDebitCreditVAT Account
Cash Sale (Dine-In)512000 Bank701000 Sales430000 (3%)
Cash Sale (Takeaway)512000 Bank701000 Sales430000 (8%)
Cash Sale (Beverage)512000 Bank701000 Sales430000 (14%)
Purchase Food602000 Purchases400000 Payables431000 (3%)
Purchase Beverage602000 Purchases400000 Payables431000 (14%)

Retail Transactions​

TransactionDebitCreditVAT Account
Cash Sale530000 Cash700000 Sales430000 (17%)
Credit Sale410000 Receivables700000 Sales430000 (17%)
Purchase Merchandise602000 Purchases400000 Payables431000 (17%)
Inventory Adjustment321000 Inventory600000 Purchases-

Service Business Transactions​

TransactionDebitCreditVAT Account
Service Revenue410000 Receivables701000 Sales430000 (17%)
Professional Fees611000 Services400000 Payables431000 (17%)
Office Supplies619000 Other Services400000 Payables431000 (17%)

Common Adjusting Entries​

AdjustmentDebitCredit
Accrued Salaries620000 Salaries440000 Salaries Payable
Prepaid Insurance613000 Insurance460000 Prepaid Expenses
Depreciation640000 Depreciation241000 Accum. Depreciation
Bad Debt650000 Bad Debts410000 Receivables
VAT Accrual430000 VAT Payable431000 VAT Recoverable

Quick Calculation Tools​

Break-Even Point​

Break-Even Units = Fixed Costs ÷ (Selling Price - Variable Cost per Unit)

Break-Even Sales = Fixed Costs ÷ Contribution Margin Ratio

Contribution Margin = Selling Price - Variable Cost

Contribution Margin Ratio = Contribution Margin ÷ Selling Price

Markup vs. Margin​

Markup % = (Selling Price - Cost) ÷ Cost × 100

Margin % = (Selling Price - Cost) ÷ Selling Price × 100

Example:​

  • Cost: €80
  • Selling Price: €100
  • Markup: (€100 - €80) ÷ €80 = 25%
  • Margin: (€100 - €80) ÷ €100 = 20%

Resources​

Online Calculators​

  • VAT Calculator: Available on Guichet.lu
  • Payroll Calculator: Available from social security administration
  • Financial Ratio Calculators: Various online tools

Software Tools​

  • Excel templates available in supplementary materials
  • Accounting software typically includes built-in calculators

Notes​

  • All templates are examples; adapt to your specific needs
  • Verify calculations with official sources
  • Consult professional advisors for complex situations
  • Keep these references handy for daily accounting tasks