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9.8 Luxembourg Customer Account Management (PCN Class 4 - Tiers)

PCN Class 4: Tiers (Third Parties)​

Class 4 in PCN contains all accounts related to third parties (customers, suppliers, employees, government, etc.).

Account Ranges:

  • 400000-409999: Suppliers (Fournisseurs)
  • 410000-419999: Customers (Clients)
  • 420000-429999: Other Third Parties (Autres Tiers)
  • 430000-439999: VAT Accounts (TVA)
  • 440000-449999: Social Charges (Charges Sociales)
  • 450000-459999: Tax Accounts (ImpĂ´ts)
  • 460000-469999: Other Liabilities (Autres Dettes)
  • 470000-479999: Deferred Revenue (Produits DiffĂ©rĂ©s)
  • 480000-489999: Provisions (Provisions)
  • 490000-499999: Allowances and Provisions (DĂ©prĂ©ciations et Provisions)

Customer Accounts (410000-419999)​

Main Accounts:

  • 410000: Accounts Receivable - Customers (Clients)
  • 411000: Notes Receivable (Effets Ă  Recevoir)
  • 412000: Bills of Exchange Receivable (Lettres de Change Ă  Recevoir)
  • 413000: Checks Receivable (Chèques Ă  Recevoir)
  • 414000: Advances to Customers (Acomptes Reçus sur Commandes)
  • 419000: Doubtful Accounts (Clients Douteux)

Sub-Accounts:

  • Can create sub-accounts for individual customers
  • Example: 410001 (Customer A), 410002 (Customer B)

Supplier Accounts (400000-409999)​

Main Accounts:

  • 400000: Accounts Payable - Suppliers (Fournisseurs)
  • 401000: Notes Payable (Effets Ă  Payer)
  • 402000: Bills of Exchange Payable (Lettres de Change Ă  Payer)
  • 403000: Checks Payable (Chèques Ă  Payer)
  • 404000: Advances to Suppliers (Acomptes VersĂ©s sur Commandes)

VAT Accounts (430000-439999)​

Main Accounts:

  • 430000: VAT Payable (TVA Ă  Payer)
  • 431000: VAT Recoverable (TVA Ă  RĂ©cupĂ©rer)
  • 432000: VAT Due (TVA Due)
  • 433000: VAT Credit (CrĂ©dit de TVA)

Allowance for Doubtful Accounts​

PCN Account:

  • 490000: Allowance for Doubtful Accounts (DĂ©prĂ©ciation des CrĂ©ances Clients)

Presentation:

  • Contra-asset account
  • Subtracted from Accounts Receivable
  • Shows net realizable value

Customer Account Management​

Best Practices:

  1. Account Setup

    • Create sub-account for each customer
    • Include customer information
    • Set credit limits
    • Define payment terms

  2. Recording Transactions

    • Record all sales promptly
    • Record all payments promptly
    • Match payments to invoices
    • Update balances regularly

  3. Monitoring

    • Regular aging reports
    • Monitor credit limits
    • Track payment history
    • Identify problem accounts

  4. Collection

    • Follow up on overdue accounts
    • Send reminders
    • Escalate when necessary
    • Document collection efforts

Luxembourg Compliance Note​

Customer account management in Luxembourg must:

  • Use proper PCN accounts (Class 4)
  • Maintain accurate records
  • Support VAT compliance
  • Enable bad debt estimation
  • Support audit requirements
  • Maintain proper documentation

Think It Through​

How does proper customer account management (using PCN Class 4 accounts) support accurate financial reporting and compliance in Luxembourg?