Environmental Accounting

Environmental Accounting Overview

Oracle Environmental Accounting and Reporting (EAR) integrates with Oracle Payables and Oracle Inventory and enables you to capture the environmental source usage for various transactions. EAR uses the environmental source usage value in the transactions to calculate GHG Emissions through the application of Energy and Emission Factors. An Emission Factor is a factor used to calculate the amount of an Emission Type produced (typically a gas) by consuming or producing an Emission Source. GHG Emissions are calculated by multiplying the factor (For example, kg CO2/GJ energy in petrol) with activity data (For example, kilolitres x energy density of petrol used). Emission calculation techniques range from usage of emission factors to direct monitoring. Emissions can be calculated by using one of the following factors:

• Factors based on direct monitoring of emissions for a specific item. This method is used for Scope 1 emissions. Refer to Defining Sources for information on types of emission sources.

• Factors specific to a supplier.

• Factors based on direct monitoring of emissions for a specific organization.

• Factors provided by a government that are location specific.

• Factors provided by a government are universal and apply to all locations.

Item specific factors override supplier specific factors which in turn override organization specific factors. The decision regarding which factor to apply is done within the application based on the above order.

Data Collection

EAR enables you to collect and account environmental source usage by:

• Entering environmental data through Payables AP Invoice.

• Recording environmental data through Inventory Miscellaneous transactions by issuing environmental items to Assets.

• Uploading environmental source usage data through Oracle Web ADI.

• Entering data manually using the Environmental Transaction Batches window.

Data Processing and Calculation

The Emission Calculation API calculates emissions by using the organization specific seeded formulas, emission source specific energy and emission factors and the recorded usage data. The calculated information is stored in the Environmental Ledger. Emission factors are defined in kgs/GJ of CO2-e. The following example explains how the emissions are calculated:

Consider that a Facility uses purchased electricity for its operations and the operations result in the emission of carbon dioxide. If the Facility uses 1,00,000 Kwh of purchased electricity, then the emissions are calculated as follows:

Emission Source: Purchased Electricity

Emission Factor for Electricity = 0.9 Kg CO2-e /KWh

Emission Scope: Indirect

Emission Types: Carbon dioxide

The consumption of 1, 00,000 Kwh of Purchased Electricity produces the following emissions:

Emissions of CO2 = (1,00,000 x 0.9) = 90,000 Kgs of CO2-e

Emission Calculations using Location Specific Factors

The EAR application enables you to setup and use location specific energy and emission factors for environmental transactions. These factors can be used by setting the GHG: Location Specific Emission Factor Selection profile option to calculate the emissions for transactions. For example, the emission source electricity is location specific, and can have different factors depending on the state of the facility where electricity is consumed. Refer to Setting Up Profile Options for information on the profile option

Environmental Accounting for Invoices

The Oracle Environmental Accounting and Reporting (EAR) application integrates with Oracle Payables and enables you to record the environmental source usage through invoices. You can choose to enter the environmental data related to invoices while performing the following:

• Invoice validation

• Post processing of invoices

Prerequisites

• Set up GL Account or Projects to identify organizations that must report emissions.
• Validate the invoice in Oracle Payables. Refer to the Oracle Payables User’s Guide for information on validating invoices.
• Invoice must contain at least one distribution account that is mapped to a environmental organization or must contain an environmental item in case of PO match.

To enter environmental data during validation of invoices

When you validate invoices related to an environmental organization or item, the Environmental Emissions pop up window appears and enables you to enter environmental data.

1. Navigate to the Invoices window using the Payables Manager responsibility.

2. Enter the invoice or query an existing invoice. Click Actions, check Validate (if the invoice has not been validated) and press OK. Refer to the Oracle Payables User’s Guide for detailed information on validating invoices. If the invoice contains a GHG related account or an environmental item (in case of a PO Match), then the Environmental Emissions pop up window appears and enables you to enter source usage data.

   Refer to the topic "Entering Environmental Usage Data during Post-processing of Invoices" for a detailed description on how to enter source usage data in the Environmental Emissions window, if the usage data entry is skipped during validation of invoices.

To Enter environmental data during post-processing of invoices

You can enter environmental data for validated invoices that contain GHG accounts or environmental items for which environmental data entry was skipped during validation. You can query for a specific invoice using the Invoice Overview window and enter the environmental data using the Environmental Emissions window. You can use the option of source usage data entry when the tasks of invoice data entry and environmental data entry are clearly separated and assigned to different individuals for business reasons. For example, an organization can have a Payables Clerk who validates an invoice and a Sustainability Officer who enters environmental data later in the business process.

1. Navigate to the Invoice Overview window using the Process Unaccounted Invoices menu option. Use the Find Invoices window to search for an invoice. This brings up the invoices that are in the status "Validated" with at least one distribution account mapped to an Environmental Organization and do not have any Emissions recorded. Refer to the Oracle Payables User’s Guide for detailed information on finding and viewing invoice details.

2. Select Create Environmental Transactions from the Tools menu. The Environmental Emissions window appears. The Autoallocate tab displays by default.

   

   • If you want the application to automatically prorate the emission source usage across relevant distributions based on their financial distributions, then perform the following steps:

     • View the Emission Source. This field defaults to the source involved in the transaction. The UOM field defaults to the UOM defined for the source. You can edit the UOM field. Refer to the “Defining Sources” topic of the Setting Up chapter for more detailed information on setting up sources. Required.

     • Enter the Usage quantity as the quantity of the emission source used. The UOM field defaults to the base unit of measure for the emission source. You can also select an alternate unit of measure from units within the same Unit of Measure Classification. Required.

     • View the From Date field that defaults to an invoice or a receipt date depending on the Parameters that you set up for the operating unit. You can edit this field. You cannot change this date after the emission usage is saved. Refer to Setting Up Parameters for more information.

     • View the To Date field that defaults to an invoice or a receipt date depending on the Parameters that you set up for the operating unit. You can edit this field. You cannot change this date after the emission usage is saved.

     • Click Create Emissions. The application autoallocates the usage on a pro-rate basis over the total of the invoice general ledger distributions.

   • If you want to allocate the emission source usage manually to distribute the emission source usage across specific organizations mapped to specific invoice distribution accounts, then perform the following steps:

     • Click the Manually Allocate tab.

       

     • Enter the Line, Number, and Account details of the specific general ledger lines that you want to allocate the source usage to.

     • The Emission Source displays but can be edited. The LOV displays a list of emission sources that you define as per the setup. Refer to Defining Sources for more detailed information on setting up sources. Required.

       Enter the Usage quantity as the quantity of the emission source used. The UOM field defaults to the base unit of measure for the emission source. You can also select an alternate unit of measure from units within the same Unit of Measure Classification. Required.

     • View the From Date field that defaults to an invoice or a receipt date depending on the Parameters. You can edit this field. You cannot change this date after the emission usage is saved.

     • View the To Date field that defaults to an invoice or a receipt date depending on the Parameters. You can edit this field. You cannot change this date after the emission usage is saved.

     • Click Create Emissions. The application allocates the usage over the specified general ledger lines.

Viewing Emissions

You can view greenhouse gas emissions resulting from all types of transactions with the Environmental Transaction Batches window. In addition, you can view emissions resulting from an invoice with the Invoice Overview window.

To view emissions generated from a miscellaneous inventory transaction

You can view the emissions due to a miscellaneous transaction that involves an issue of an environmental item to an asset using the Environmental Transaction Batches window. A source usage transaction is generated automatically from an inventory issue based upon the use of an item that has additionally been set up as an environmental item with the associated emission source and emission factors. The Environmental Transaction Batches window displays only the usage transaction and it cannot be edited.

Prerequisite:

Issue an environmental item to an asset.

1. Navigate to the Material Transactions window.

2. Query for the transaction of interest using the Find Material Transactions window. Refer to the Oracle Inventory User’s Guide for detailed information about the Material Transactions and Find Material Transaction windows.

3. Select View Emissions from the Tools menu. The Environmental Transaction Batches window appears, displaying the transaction generated by the inventory issue. Refer to Entering Transaction Batches Manually for a detailed description of the Environmental Transaction Batches window.

To view emissions generated from an invoice using the Environmental Transaction Batches window

Invoices created in Oracle Payables using the Invoice Workbench have a batch type of Internal Invoice and no subtype. Query these invoices by invoice number or a batch type of Internal Invoice using the Environmental Transaction Batches window. You cannot create transactions with a batch type of Internal Invoice from the Environmental Transaction Batches window.

1. Navigate to the Environmental Transaction Batches window.

2. Query for the transaction of interest by entering "Internal Invoice" in the Type field.

   • Select [M] View > Query By Example > Enter.

   • Enter "Internal Invoice" in the Type field.

   • Select [M}View > Query By Example > Run.

   Use other fields to narrow the list of results. Refer to Entering Transaction Batches Manually for a description of the other fields in this window.

To view emissions generated from an invoice using the Invoice Overview window

1. Navigate to the Invoice Overview window. Use the Find Invoices window to search for an invoice. Refer to the Oracle Payables User’s Guide for detailed information on finding, and viewing invoice details.

2. Select View Environmental Transactions from the Tools menu. The Environmental Emissions window appears.

   

   The following fields display:

   • Invoice is the invoice number for the transaction.

   • Transaction is the transaction identification number.

   • Organization is the facility to which the transaction relates to.

   • Supplier is the name of the supplier of the source.

   • Asset Number is identification number for the environmental asset.

   • Description is a description defined for the asset.

   • Asset Book is the asset book number.

   • Item is the identification code for the environmental source.

   • Description is a short description for the item.

   • Source is the environmental source for the transaction.

   • Scope is the type of emission source.

   • Location is the location of the organization.

   • Usage Quantity is the quantity of the source used in the transaction.

   • UOM is the unit of measure for the environmental source.

   • Measurement Criteria is the method used for measurement of the usage quantity of the source.

   • UOM Conv is the unit of measure conversion factor.

   • CO2-e (Kgs) is the CO2 equivalents generated by the facilities in your organization and is expressed in kilograms (kgs).

   • Energy (GJ) is the energy associated with the total quantity of environmental source consumed and is expressed in gigajoules (GJ).

   • Source Type is the name of the source type.

   • From and To are the start date and the end date for the usage transaction.

   • Usage is the total source usage by the facilities in your organization.

3. Click View Ledger to view the emissions by day and gas for a transaction. Refer to Viewing the Environmental Ledger for more information.

Viewing the Environmental Ledger

You can view the emission details for a transaction by day and by emission type and the emission factors used in the emission calculations using the Environmental Ledger window.

To view the emissions Ledger

1. Navigate to the Environmental Emissions window.

2. Select the transaction for which you want to view the emissions details. Click View Ledger. The Environmental Ledger window appears

   

   The following fields display:

   • In the Emissions tab, the Emission Date is the effective date for the emission transaction.

   • Gas is the name of the gas emitted.

   • CO2-e is the carbon equivalent for the amount of gas emitted and is expressed in Kgs.

   • Emission Factor is the factor used in the emission calculations.

   • In the Energy tab, Emission Date is the effective date for the emission transaction.

   • Type is energy source type.

   • Energy (GJ) is the energy associated with the source consumed in the transaction and is expressed in gigajoules.

3. Close the window.

Environmental Accounting Using Inventory Issue Transactions

The Oracle Environmental Accounting and Reporting (EAR) application integrates with Oracle Inventory and enables you to enter source usage information for a transaction that involves an issue of environmental Item (like fuels) to an Internal or External asset. You must create a GHG Inventory Issue to GHG Asset Transaction template to enable you to capture the asset number at the time of a miscellaneous issue. Refer to Setting Up in Oracle Inventory topic in Setting Up in Other Applications for more information.

To enter environmental source usage data during a miscellaneous transaction

1. Navigate to the Miscellaneous Transactions window using the Inventory Super User responsibility.

   Refer to the Oracle Inventory User’s Guide for detailed information on the Miscellaneous Transactions window.

2. Enter GHG Inventory Issue to GHG Asset in the Type field.

3. Select the GHG Asset to which you want to issue the environmental item, in the Transaction Source field.

4. Click Ok.

5. Click Transaction Lines.

6. Select the environmental item to issue in the Item field.

7. Enter the usage quantity of the item in the Quantity field.

8. Select the Subinventory for the item.

9. Click Save. You can view the transaction using the Material Transactions window and the emission calculations as a result of the transaction, using the Environmental Transaction Batches window. Refer to Viewing Emissions, Oracle Environmental Accounting and Reporting User's Guide for more information.

Entering Transaction Batches Manually

You can enter source usage information for material transactions using the Environmental Transaction Batches window. The Environmental Transaction Batches window also lets you review the emissions on a batch, reverse a batch, copy a batch, and approve a batch.

Note: You can use the Environmental Transaction Batches window when you need to add one off usages transactions from a smaller external source system or when WebADI upload is not available.

Note: You can also enter emissions in batches when you need to enter manual adjustments, where usage transactions already entered in a closed Payables period, must be adjusted.

Prerequisites:

• Define Assets and Items. Refer to Defining Assets, and Defining Items for more information.

• Perform a GHG Inventory Issue to GHG Asset miscellaneous transaction in Oracle Inventory to issue a GHG Item to a GHG Asset.

Refer to the Setting Up in Oracle Inventory topic in the Setting Up in Other Applications for information on setting up the GHG Inventory Issue to GHG Asset transaction type.

Refer to the Oracle Inventory User’s Guide for detailed information on creating miscellaneous transactions.

To enter environmental transaction batches

1. Navigate to the Environmental Transaction Batches using the Enter Transactions Batches menu option. The Environmental Transaction Batches window appears. The Operating Unit that owns the facility or organization where the source is used displays.

   

2. Select a batch type in the Type field. Examples are:

   • Adjustment: This batch type is used to identify transactions as adjustments. An adjustment is required when companies want to make a change to the emissions footprint, but record the event from an audit point of view.

   • Estimate: This batch type is used to categorize transactions as estimates. This is useful when legislations allow organizations to estimate the emissions for small facilities in their operations. This is also useful for companies to put advanced estimates to potentially build a view of the potentials emissions. These estimates can be reversed at a later stage as actual emissions become available.

   • External Invoice: This batch type enables the Supplier and Supplier site fields. This allows the entry of information for external invoices not being processed through the internal Accounts Payables. This can be used for sub-contractor invoices.

   • Item: This batch type allows the entry of batches that perform inventory issues without assets or issues to a specific asset. If you select the Item batch type, then the Item and Asset fields are enabled. You must enter an Item in the Item field, and optionally select an asset.

   • Misc for miscellaneous emissions: This batch type can be used for general transaction batches that require the minimum amount of information to generate the emissions records.

3. Optionally select a Sub Type for the batch. Valid options are:

   • Flaring for emissions due to flaring.

   • Fugitive for fugitive emissions.

   • Misc for miscellaneous emissions.

   • Venting for emissions due to venting of gases.

4. Enter an alpha-numeric number as a Batch number. Required.

5. Optionally, enter a brief Description for the batch.

6. Optionally, select a default Supplier from the LOV who supplied the goods or service. This supplier is the default supplier which initially appears on all batch usage lines

7. Supplier Num defaults to the number of the default Supplier selected.

8. Status field defaults to Unapproved when you create a batch. The status changes to Approved when you approve the batch.

9. Created By defaults to the name of the person who creates the batch initially.

10. Creation Date defaults to the date the batch is created.

11. Click Save.

12. To enter emissions for a batch, click Emissions. The Environmental Emissions window appears. Refer to Viewing Greenhouse Gas Emissions for a Transaction for a detailed description on the Environmental Emissions window.

13. To reverse a batch, click Reverse.

14. To copy a batch, click Copy.

15. To approve a batch, click Approve. This option is enabled only after you enter emissions for a batch. If you do not want to add further transactions to the batch, then approve the batch.

    Note: You cannot edit a batch, after you approve it.

16. The following fields display after you enter the usage information for a batch in the Environmental Emissions window:

    • Usage Quantity is the source usage quantity for the selected batch.

    • CO2-e (kg) is the carbon equivalent of the emissions for the selected batch.

    • Energy (GJ) is the energy associated with the source usage for the selected batch.

17. To view emission details for a transaction by day and by gas and the emission factors used in the emission calculations for each transaction, select a transaction and click View Ledger. Refer to Viewing the Environmental Ledger for more information.

Loading Source Usages Using the Oracle Web Applications Desktop Integrator

Oracle Environmental Accounting and Reporting enables you to manually upload transactions resulting in greenhouse gas emissions using WebADI. This feature enables you to upload the usage information in batches from spreadsheets, review the emissions on a batch, reverse a batch, copy a batch and approve a batch. Approving locks the batch and prevents any editing of the batch. Refer to the Oracle Web Applications Desktop Integrator Implementation and Administration Guide for detailed information on using WebADI.

Creating Transactions Using an API

Oracle Environmental Accounting and Reporting provides an API to create environmental batches from external systems and create transactions within these batches. Use this API to create the five types of Environmental Batches supported in Oracle EAR:

• Adjustment

• Estimate

• External Invoice

• Item

• Misc

Invoke the API from the calling application or from a standalone PLSQL wrapper. The following example code calls the GHG_TRANSACTIONS_API_PKG and provides sample values. Change the sample values to meet your needs. After running the API code from the back end, verify the creation of a transaction batch by querying it in the Enter Transaction Batches window.

DECLARE

  v_msg_code VARCHAR2(200);
  v_msg_text VARCHAR2(200);

BEGIN

  v_msg_code := FND_MESSAGE.GET_ENCODED;

  GHG_TRANSACTIONS_API_PKG.create_transaction(
    p_org_id                        => 204,
    p_batch_type                    => 'EXTERNAL INVOICE' ,
    p_batch_sub_type                => '',
    p_batch_number                  => 'BUG 13511580',
    p_batch_description             => 'BUG 13511580',
    p_facility                      => '222-Broken Hill',
    p_emission_source_name          => '222-FUEL OIL (NON-TRANSPORT)',
    p_emission_scope                => '1',
    p_emission_location             => 'ALL',
    p_emission_usage                => 100,
    p_emission_uom                  => 'kiloliters',
    p_emission_from_date            => '01-JUN-2011',
    p_emission_to_date              => '30-JUN-2011',
    p_emission_description          => '222-TEST-EMISSSION-001',
    p_supplier                      => 21,
    p_supplier_site_name            => 7083,
    p_item_number                   => '',
    p_ghgas_asset                   => '',
    p_invoice_id                    => NULL,
    p_invoice_line_num              => NULL,
    p_invoice_dist_num              => NULL,
    p_m_criteria                    => 'A',
    p_commit_flag                   => 'Y',
    p_manual_entry_flag             => 'Y'
    );

EXCEPTION

  WHEN OTHERS THEN

     v_msg_code := FND_MESSAGE.GET_ENCODED;
     Dbms_Output.put_line(substr(v_msg_code,5));
     Dbms_Output.put_line(sqlerrm);
     if v_msg_code is not null then
        v_msg_code := substr(v_msg_code,5);
        v_msg_code := substr(v_msg_code,1,length(v_msg_code)-1);
        FND_MESSAGE.SET_NAME('GHG',v_msg_code);
        v_msg_text := '***Following exception occurred :' || Chr(10) || FND_MESSAGE.GET || Chr(10) || SQLERRM;
     else
        v_msg_text := SQLERRM;
     end if;

     Dbms_Output.put_line(v_msg_text);

 END;

Field Name	API Field Description	Mandatory/Optional	Data Type	Remarks
p_org_id	Operating Unit ID	Mandatory	VARCHAR2(200)	Operating Unit for which batch is created.
p_batch_type	Emission Batch Type	Mandatory	VARCHAR2(200)	An existing Batch Type in EAR. For example “EXTERNAL INVOICE”. Other Batch Types include: MISC, ADJUSTMENT, ESTIMATE, ITEM.
p_batch_sub_type	Emission Batch Sub Type	Optional	VARCHAR2(200)	An existing Batch Sub Type in EAR. For example “FUGITIVE”. Other Batch Sub Types include: FLARING, MISC, VENTING.
p_batch_number	Emission Batch Number	Mandatory	VARCHAR2(200)	User defined batch number.
p_batch_description	Description of Emission Batch	Optional	VARCHAR2(200)	User defined batch description.
p_facility	Environmental Facility	Mandatory	VARCHAR2(200)	Facility Name for which transaction is created.
p_emission_source_name	Environmental Source Name	Mandatory	VARCHAR2(200)	Source Name for which transaction is created.
p_emission_scope	Emission scope of the source	Mandatory	VARCHAR2(200)	An existing Emission Scope in EAR. For example “ 1”, Other Scopes are: 0, 2, 3.
p_emission_location	Location	Optional	VARCHAR2(200)	Location where transaction is taking place.
p_emission_usage	Usage Value	Mandatory	VARCHAR2(200)	User defined Usage Value.
p_emission_uom	UOM of the usage value	Mandatory	VARCHAR2(200)	Valid UOM of the usage value that exists in EAR.
p_emission_from_date	Usage Start Date	Mandatory	VARCHAR2(200)	User defined Usage Start Date.
p_emission_to_date	Usage End Date	Mandatory	VARCHAR2(200)	User defined Usage End Date.
p_emission_description	Usage Description	Optional	VARCHAR2(200)	User defined description of usage.
p_supplier	Supplier ID in case of Item Batch	Optional	VARCHAR2(200)	Valid supplier code existing in application.
p_supplier_site_name	Supplier Site ID in case of Item Batch	Optional	VARCHAR2(200)	Valid supplier site code existing in application.
p_item_number	Item name	Optional	VARCHAR2(200)	Item name Required in case of Item Batch.
p_ghgas_asset	Environmental Asset Number	Optional	VARCHAR2(200)	Valid Environmental Asset Number existing in application.
p_invoice_id	Invoice ID	Optional	VARCHAR2(200)	Valid invoice ID existing in application.
p_invoice_line_num	Invoice Line Number	Optional	VARCHAR2(200)	Valid Invoice Line Number existing in application.
p_invoice_dist_num	Invoice Distribution Number	Optional	VARCHAR2(200)	Valid Invoice Distribution Number existing in application.
p_m_criteria	Code of measurement criteria of Usage value.	Mandatory	VARCHAR2(200)	Measurement Criteria Code setup in EAR. For example “A”. Other criteria are: AA, AAA, BBB
p_commit_flag	Commit	Mandatory	VARCHAR2(200)	Always set this value to ‘Y’.
p_manual_entry_flag	Manual Entry	Mandatory	VARCHAR2(200)	Always set this value to ‘Y’.

Performing Emissions and Energy Recalculations

The Oracle Environmental Accounting and Reporting (EAR) application is designed to calculate the emissions and energy usage values based on the relevant factors defined in the application while entering transactions. The specified factors are considered to be correct and complete when the calculation is performed. However, there may be situations where the factors may be incorrect due to which calculations produce incorrect results.

The EAR application allows you to correct the factors using the Environmental Sources window and provides the Recalculate Emissions concurrent program to recalculate the emission and energy values based on the revised factors.

To run the Recalculate Emissions concurrent program

1. Navigate to the Submit Request window.

2. In the Name field, select Recalculate Emissions. The Parameters window displays.

3. Select any of the following options to run the program for a subset of GHG Transactions:

   • Supplier: To perform recalculations for transactions associated with a specific supplier.

   • Invoice Number: To perform recalculations for transactions related to a specific invoice. If the Supplier is entered, then this field is enabled and is restricted to the invoices associated with the supplier.

   • Organization: To perform recalculations for transactions associated with a specific organization.

   • Emission Source: To perform recalculations for transactions associated with a specific source.

   • Emission From and Emission To: To recalculate emission transactions within a specific date range. Note: If the process is run with no parameters, it completes with an error as unrestricted recalculation of the emission and energy is not permitted.

4. Click Ok and then Submit.

5. You can view the details of the request in the Requests window.

Transferring Transactions to the Data Warehouse

Run the ODI Package PKG_EBS_GHG_ETL to transfer the environmental data from the Environmental Ledger to the Environmental Data Warehouse. The Oracle Business Intelligence application uses the data for environmental reporting through the pre-built dashboards and reports.

To run the ODI package

1. Navigate to ODI Studio, then log in with the credentials provided by your administrator.

2. Select PKG_EBS_GHG_ETL. Right click on the package name and select the Execute option.

3. In the Execution prompt, select a Context from the list of values. Logical Agent and Log Level are optional fields. Click OK.

4. In the Variable Values prompt, provide the values of the run time variables. For the first run, provide the values EBSEARETL.SOURCE_INSTANCE_CODE and EBSEARETL.v_language. For all subsequent runs, the variable values are populated with the last run values's.

5. View the execution status in the ODI Operator tab.