Analytical Accounting Records for the Project is the obligation to keep accounts in such a way that the project's expenditure can be clearly separated from the recipient's other activities at any time. In practice, this is handled through separate analytical accounts, a cost centre or an order in the accounting software, or a combination of these. The aim is an auditable trail that allows an inspector to follow the path from the amount reported in the payment request, through the specific accounting entry and invoice, all the way to the bank statement and the delivered performance. This also usually includes marking original accounting documents with the project name and code, so the same document cannot be used a second time. An incorrect or missing separation of records is not treated by controllers as a minor formality – without demonstrable assignment of an expense to the project, it may be assessed as ineligible and reduced accordingly. Set up the record-keeping system with your accountant right after signing the non-repayable financial contribution agreement, not just before the first payment request.
See also: Double Financing, Payment claim, Eligible expenditure.
