Luxembourgish PCN 2020

How to migrate your Luxembourg accounting plan according to the new PCN 2020

Introduction 

The Luxembourg Government introduced a new standardized chart of accounts (known as PCN 2020) in the Grand-Ducal Regulation dated September 12, 2019.

PCN 2020 is a revision of PCN 2009 to match the current needs of both companies and the public sector. 

Useful links:

What has changed under PCN 2020?

PCN 2020 is a logical continuation of the 2009 version. However, the nomenclature has been revised as follows:

Some accounts have been:

  • Added e.g. "211 development costs" has been created;

    • It means new accounts creation

  • Deleted e.g. "1821 Provision for corporate income tax" has been deleted;

    • It means accounts depreciation (or deletion if never used).

  • Split e.g. “61332 commission and loans’ issuance expenses” has been split into “61332 loans’ issuance expense” and “61338 other banking and similar services

    • It means new accounts creation and renaming of existing accounts

  • Merged e.g. “303 inventories of consumable materials and supplies” combines “302 consumable materials” and “303 consumable supplies

    • It means renaming/deprecation of existing accounts (or deletion if never used)

  • Moved e.g. “22115 developed land” has been moved  to “221111 developed land

    • It means deprecation of existing  accounts and new accounts creation

All changes are available in the official spreadsheet:
http://www.cnc.lu/fileadmin/user_upload/publications/pcn_ecdf/PCN_2009_PCN2020-20190909_Diffusion_v1.xlsx 

How to update the PCN in Odoo?

Deprecate unused accounts

We advise deprecating accounts that have never been used:

  • It will be easier to compare a reduced 2009 PCN to the 2020 PCN

  • It saves time, you will avoid analyzing accounts you will never use

  • It is good practice to prevent erroneous new entries

Deprecating one account is easy, you just have to check the “Deprecated” field.

However, deprecating numerous accounts that way would be time-consuming. We, therefore, recommend exporting data and re-importing it after making adequate changes in your favorite spreadsheet app.

Find unused accounts

Odoo 13 allows you to find unused accounts using a custom filter based on the field “used is false”. This will create a list of the accounts not in use and to be deprecated.

Update accounts using a spreadsheet app

We can now export all accounts from the list we just created. Don’t forget to export the field “deprecated” as you will need to change it from “false” to “true”.

After updating the data in your spreadsheet app, re-import your file in Odoo and the accounts will be deprecat accordingly.

See our “Contacts and Importing” video for more details about import/export features https://www.odoo.com/slides/slide/contacts-and-importing-data-609  

Compare your current PCN to PCN 2020

We suggest using the file shared by the Luxembourg Commission for Accounting Standards in order to identify accounts that should be:

  • Created

  • Deprecated

  • Renamed

http://www.cnc.lu/fileadmin/user_upload/publications/pcn_ecdf/PCN_2009_PCN2020-20190909_Diffusion_v1.xlsx

Update accounts using your spreadsheet app

If you have to transfer your old and soon to be deprecated accounts balance to newly created accounts you need to do it before you deprecated them, it’s not possible to create a journal entry on a deprecated account. You can make those changes in your spreadsheet app of choice as well by exporting and re-importing your data.

See our “Contacts and Importing” video for more details about import/export features https://www.odoo.com/slides/slide/contacts-and-importing-data-609  

Transfer balance to PCN 2020 accounts

All “balance sheet” accounts with a debit/credit balance should be transferred in their corresponding PCN 2020 account.

e.g. the account “202 Start-up costs” no longer exists and should be transferred to “201 set-up cost”, nevertheless there is a debtor balance of 10.000€ in the account “202 start-up costs”. You will have to register a journal entry to transfer said amount to the account “201 set-up cost”.

Another possible situation is that operations have been recorded in 2020 in profit and loss accounts that are no longer in use following the application of PCN 2020. In such cases, the same process of recording a miscellaneous operation must be performed to transfer balances to the PCN 2020 related accounts.

Once all transfers are done you can finally deprecate older accounts. It’s important to make sure those accounts don't have any debit/credit balance before deprecating them.


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