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Chapter 26 – Luxembourg Plan Comptable Normalisé (PCN)

Chapter Introduction​

Sophie Martin, the owner of Artisan Boulangerie in Luxembourg City, sits across from her accountant, Monsieur Dubois, reviewing her financial statements. "I see these account numbers everywhere—101, 411, 701, 607," she says, pointing to her balance sheet. "What do they mean? Why can't I just use simple names like 'Cash' or 'Sales'?"

Monsieur Dubois smiles. "Sophie, you're looking at the PCN—the Plan Comptable Normalisé. It's Luxembourg's standardized chart of accounts. Every business in Luxembourg must use these account numbers. They're not arbitrary—they follow a logical system that makes your financial information consistent, comparable, and compliant with Luxembourg law."

The Plan Comptable Normalisé (PCN) is Luxembourg's mandatory standardized accounting framework. Established to ensure consistency, transparency, and compliance across all businesses operating in Luxembourg, the PCN provides a structured system for classifying and recording financial transactions. Whether you're a small bakery like Sophie's, a tech startup, or a multinational corporation, you must organize your accounting according to PCN standards.

The PCN organizes accounts into seven main classes, each serving a specific purpose in financial reporting. Understanding the PCN is not optional—it's a legal requirement under Luxembourg's Commercial Code. But beyond compliance, mastering the PCN helps business owners like Sophie understand their financial position, communicate effectively with stakeholders, and make informed business decisions.

This chapter provides a comprehensive guide to the PCN, from its history and evolution to practical application in your business. You'll learn how to navigate the seven account classes, understand the numbering system, map common transactions to PCN accounts, and customize your chart of accounts while maintaining compliance.

Why It Matters​

Understanding the PCN is fundamental for any business operating in Luxembourg:

  • Legal Compliance: The PCN is mandatory. All businesses must use PCN account classifications for financial reporting, RCS filings, and tax compliance.
  • Consistency: Standardized accounts ensure that financial information is comparable across businesses and over time.
  • Professional Communication: Using PCN accounts enables effective communication with accountants, auditors, banks, and regulatory authorities.
  • Software Integration: Most Luxembourg accounting software (Sage BOB, Odoo, etc.) is built around PCN structure.
  • Audit Readiness: Proper PCN implementation ensures your records are audit-ready and compliant with Luxembourg standards.

Luxembourg-Specific Importance:

  • RCS filing requires PCN-compliant financial statements
  • Tax authorities (ACD) expect PCN-structured accounts
  • Banks and lenders require PCN-compliant financial reports
  • eCDF VAT filing integrates with PCN account structure
  • FAIA file generation relies on PCN account classifications

Understanding the PCN helps you:

  • Organize your financial records systematically
  • Ensure compliance with Luxembourg regulations
  • Work effectively with accounting professionals
  • Choose and implement appropriate accounting software
  • Prepare accurate financial statements for stakeholders

Learning Objectives​

By the end of this chapter, you should be able to:

  1. Understand the history and evolution of the PCN from PCN 2011 to PCN 2020
  2. Describe the structure of the seven PCN account classes and their purposes
  3. Navigate the PCN account numbering system and understand numbering conventions
  4. Map common SME transactions to appropriate PCN accounts
  5. Customize your chart of accounts for your specific business while maintaining PCN compliance
  6. Identify PCN compliance requirements and ensure your accounting system meets legal standards