Calculation and Reporting
Internal invoicing is generally reported using unit costs and must follow the beneficiary’s usual cost accounting practices.
The following principles apply:
- The calculation must be based on actual costs recorded in the accounts.
- Objective and verifiable data must be used.
- The methodology must be part of the organisation’s usual internal cost accounting practice.
- Costs must be properly allocated (directly or via cost centres).
In justified cases, certain calculated elements (e.g. budgeted values) may be included, provided they are:
- relevant for the cost calculation, AND
- reasonable, based on objective and verifiable information.
Costs from internal invoicing:
- are not included in the calculation of the 25% flat-rate for indirect costs,
- may, however, already include actual indirect cost components within the unit cost calculation.
This ensures that double funding of overheads is avoided.
Supporting Documents and Records
The beneficiary must ensure that:
- the use of internally provided goods or services for the project is documented, AND
- the extent and duration of use can be demonstrated, AND
- the calculation method is transparent and auditable.
An internal invoice is not mandatory; however, sufficient records supporting the methodology of cost calculation must be kept.
Personnel Costs within Internal Invoicing
If personnel costs are included in internally invoiced services:
- they must be calculated in line with Horizon Europe rules for personnel costs,
- appropriate supporting documents must be available (e.g. declarations and/or time records).
Further Information