26.2 PCN Structure: The Seven Account Classes

Overview of the Seven Classes

The PCN organizes all accounts into seven main classes, each representing a category of financial information. Understanding these classes is fundamental to using the PCN effectively.

Class 1: Capital, Provisions, Financial Debts

Purpose: Accounts for equity, provisions, and long-term financial obligations.

Key Accounts:

• 101-109: Share capital and equity
• 13: Provisions (for risks, depreciation, etc.)
• 16: Long-term financial debts (loans, bonds)

Examples:

• Account 101: Share capital (Capital social)
• Account 13: Provisions for risks and charges
• Account 16: Long-term bank loans

Balance Sheet Impact: Appears on the liability and equity side of the balance sheet.

Class 2: Fixed Assets and Establishment Costs

Purpose: Accounts for long-term assets and establishment expenses.

Key Accounts:

• 20: Intangible fixed assets (goodwill, patents, software)
• 21: Tangible fixed assets (land, buildings, equipment)
• 28: Depreciation of fixed assets
• 29: Provisions for fixed asset depreciation

Examples:

• Account 211: Land
• Account 213: Buildings
• Account 218: Machinery and equipment
• Account 281: Accumulated depreciation of buildings

Balance Sheet Impact: Appears on the asset side, net of depreciation.

Class 3: Inventory Accounts

Purpose: Accounts for inventory and work in progress.

Key Accounts:

• 30: Raw materials
• 31: Work in progress
• 37: Finished goods
• 39: Inventory provisions

Examples:

• Account 301: Raw materials (for a manufacturer)
• Account 371: Finished goods inventory
• Account 391: Provisions for inventory depreciation

Balance Sheet Impact: Current assets on the balance sheet.

Class 4: Third-Party Accounts

Purpose: Accounts for relationships with third parties (customers, suppliers, VAT, social charges).

Key Accounts:

• 40: Suppliers (Fournisseurs)
• 41: Customers (Clients)
• 44: Other third parties
• 445: VAT accounts (TVA)
• 43: Social charges (Charges sociales)

Examples:

• Account 401: Suppliers
• Account 411: Customers
• Account 44571: VAT payable (TVA à payer)
• Account 44551: Input VAT recoverable (TVA récupérable)
• Account 431: Social security charges payable

Balance Sheet Impact: Current assets (customers) and current liabilities (suppliers, VAT, social charges).

Class 5: Financial Accounts

Purpose: Accounts for cash, bank accounts, and financial investments.

Key Accounts:

• 50: Cash and bank accounts
• 51: Short-term investments
• 53: Cash equivalents

Examples:

• Account 512: Bank account (Compte bancaire)
• Account 530: Cash (Caisse)
• Account 531: Petty cash (Caisse petite)

Balance Sheet Impact: Current assets, representing liquidity.

Class 6: Expense Accounts

Purpose: Accounts for all business expenses.

Key Accounts:

• 60: Purchases (Achats)
• 61: Services (Services extérieurs)
• 62: Personnel expenses (Personnel)
• 63: Taxes (Impôts)
• 64: Other operating expenses
• 65: Financial expenses
• 66: Exceptional expenses
• 67: Depreciation and provisions

Examples:

• Account 601: Purchases of goods
• Account 611: Subcontracted work
• Account 621: Salaries
• Account 641: Rent
• Account 671: Depreciation of fixed assets

Income Statement Impact: Reduces profit (appears on the expense side).

Class 7: Revenue Accounts

Purpose: Accounts for all business revenues.

Key Accounts:

• 70: Sales (Ventes)
• 71: Production (Production)
• 74: Other operating revenues
• 75: Financial revenues
• 76: Exceptional revenues

Examples:

• Account 701: Sales of goods
• Account 706: Services rendered
• Account 751: Interest income
• Account 771: Revenue from fixed asset sales

Income Statement Impact: Increases profit (appears on the revenue side).

Class Structure Summary

Class	Name	Purpose	Balance Sheet/Income Statement
1	Capital, Provisions, Financial Debts	Equity and long-term obligations	Balance Sheet (Liability/Equity)
2	Fixed Assets	Long-term assets	Balance Sheet (Asset)
3	Inventory	Current inventory	Balance Sheet (Asset)
4	Third-Party Accounts	Customers, suppliers, VAT, social charges	Balance Sheet (Asset/Liability)
5	Financial Accounts	Cash and bank accounts	Balance Sheet (Asset)
6	Expense Accounts	All expenses	Income Statement (Expense)
7	Revenue Accounts	All revenues	Income Statement (Revenue)

Luxembourg Compliance Note

All seven classes must be used in your chart of accounts, even if some accounts remain at zero. For example, a service business may not use Class 3 (Inventory), but the class structure must be maintained. This ensures consistency and compliance with PCN requirements.

Think It Through

Sophie's bakery purchases flour (raw material), bakes bread (production), and sells to customers. How would these transactions flow through the PCN classes? Identify which classes and specific accounts would be involved.

Concepts in Practice

Restaurant Example: Le Petit Bistro

Marie's restaurant uses multiple PCN classes:

• Class 2: Kitchen equipment (Account 218), furniture (Account 215)
• Class 3: Food inventory (Account 301), beverages (Account 302)
• Class 4: Customer accounts (Account 411), supplier accounts (Account 401), VAT (Account 44571)
• Class 5: Bank account (Account 512), cash register (Account 530)
• Class 6: Food purchases (Account 601), rent (Account 641), salaries (Account 621)
• Class 7: Food sales (Account 701), beverage sales (Account 701)

This structure allows Marie to track all aspects of her business systematically.

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