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Using ERP Data

A robust and credible carbon accounting system requires a data foundation that is both reliable and reflective of actual organizational activities. The BeWo methodology employs data sourced from Enterprise Resource Planning (ERP) or finance systems as the primary input. This approach capitalizes on the rigor, standardization, and verification processes inherent in financial accounting, thus enhancing the credibility and auditability of the resulting emissions inventory.

General Ledger as the Starting Point​

The initial data source for carbon accounting calculations is the posted financial transactions recorded in the General Ledger (G/L). Under generally accepted accounting principles, the G/L is maintained according to standardized methods and regularly subjected to internal controls and external audits. This ensures that each recorded expense or purchase reflects a verified economic event. Relying on these posted G/L entries provides:

  • Verifiability: Each transaction has been reviewed, booked, and reconciled, reducing the likelihood of material misstatements.
  • Reproducibility: The same accounting structure can be applied from year to year, facilitating consistent comparisons of emissions.
  • Business Relevance: G/L data represents actual resource consumption and service usage, making it a meaningful proxy for identifying greenhouse gas (GHG) emission sources.

Additional Contextual Data​

While G/L entries offer a starting point, descriptions in financial accounts can be generic (e.g., “Office Supplies”). To enhance accuracy, additional contextual data may be integrated. Access to supporting documents and records can refine the interpretation of each transaction:

  1. Documents and Invoices:
    Associated invoices, e-invoices, or scanned receipts can be examined to ascertain the precise nature of purchased goods or services. Rather than treating an expense simply as “Office Supplies,” the presence of itemized invoices allows a more granular breakdown (e.g., paper, ink, or pencils), facilitating the selection of an appropriate emission factor.

  2. Vendor Information:
    The ERP system often links expenses to specific vendors. Understanding the vendor’s identity and the nature of their offerings can clarify whether the expenditure should be associated with a particular emissions category. For instance, differentiating a stationery supplier from a fuel provider has direct implications for emissions classification.

  3. Inventory Management Records:
    In certain cases, transactions link to inventory management modules. This can reveal whether a purchased good (e.g., a fuel type or manufacturing input) corresponds to a known emission source, further increasing the precision of the emissions calculation.

Incorporating these supplementary data points ensures that the emissions inventory extends beyond the baseline financial categorization, achieving a more nuanced and representative depiction of operational activities.

Ensuring Traceability and Auditability​

A defensible emissions inventory must be transparent regarding data sources and transformation steps. To this end, the BeWo platform records essential references for each data point:

  • Entry Number: Identifies the specific G/L entry from which the data was derived.
  • Voucher Number: Connects the emission line item to a particular voucher or set of transactions.
  • Document Attachment Number: Points directly to the source invoice or receipt, enabling auditors and stakeholders to verify the underlying details.
  • Account Number: Indicates the specific account chosen during the configuration, linking the transaction to a defined category of expenses.

These references facilitate external verification, allowing auditors or other reviewers to trace each emission calculation back to its original financial record and supporting documentation.

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The availablity of these references may vary depending on the ERP system in use and the recorded data in the system.

Enhancing Accuracy with Supplementary Information​

The quality of emissions data improves in proportion to the completeness and specificity of the underlying sources. Beyond invoices and vendor details, organizations may integrate additional documents or supplier statements for more sophisticated analyses. Such enhancements, while not strictly necessary, can incrementally improve the accuracy and relevance of the resulting emissions estimates.

Next Steps: Selecting and Prioritizing Emission Factors​

Once the financial data and supporting documents establish a comprehensive activity profile, the subsequent step involves assigning appropriate emission factors to translate these activities into quantitative GHG emissions. The selection and prioritization of emission factors are critical to producing estimates that are both credible and policy-aligned.

For guidance on emission factor selection, refer to the article on Selecting & Prioritizing Emission Factors.

By grounding the carbon accounting process in posted ERP transactions and enriching these entries with additional contextual data, the BeWo methodology ensures a solid, auditable foundation for emissions reporting. This approach aligns with the principles of the GHG Protocol, supports rigorous external verification, and upholds the integrity of the organization’s carbon inventory.