Introduction

This Oracle by Example (OBE) demonstrates how to set up the JD Edwards EnterpriseOne Sustainability Framework to record and report Scope 2 – Purchased Energy (Market-based). In this OBE, you will configure determinants, activity types, and ledger entries to track sustainability.

Background

Organizations are increasingly required to track and report greenhouse gas emissions from the purchased energy as part of regulatory compliance and sustainability management, as part of Scope 2. The JD Edwards EnterpriseOne Sustainability Framework provides foundational components and activity ledgers to record these details.

Scenario

An automotive components manufacturer who operates a facility in Alaska, needs to track investments in renewable energy (market-based), for sustainability reporting. As part of its commitment to reducing emissions, the manufacturer invests in market-based contractual instruments such as Renewable Energy Certificates (RECs), Power Purchase Agreements (PPAs), and Guarantees of Origin (GOs). In our example, the company purchases an REC for 500 kilowatt-hour (kWh) from a supplier. The company tracks this for sustainability reporting under Scope 2. Let us set up the components of the Sustainability Foundation:

Prerequisites

  • Access to Oracle JD Edwards EnterpriseOne with Sustainability Framework enabled (system code 20S active).
  • Appropriate roles and permissions to update Sustainability Foundation configurations.
  • Next Numbers configured for activity documents and batches.
  • Availability of supplier and Business Unit master data.

1: Setting Up Determinants

In this scenario, since the company has purchased an REC, a determinant representing the REC is configured in the system.

  1. Sign in to the EnterpriseOne web client.
  2. From the EnterpriseOne Menus, select Sustainability Framework Setup (G20S41), and then select Determinants (P20S05).
  3. On the Work with Determinants form, click Add to open the Determinants Revision form (W20S05C).
  4. For each row, enter values in the following fields:
    • Determinant: REC-2024-MRETS_123
    • Determinant Description: Renewable Energy Certificate
    • Determinant Type: CON_INSTR
  5. Click OK to save the determinant.
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    Determinants Revision form

2: Mapping Determinant Type

To store the determinant in the Activity Ledger table, map the determinant type to its corresponding column.

  1. From the EnterpriseOne Menus, select Sustainability Framework Setup (G20S41), and then select Determinant Types Mapping (P20S09).
  2. On the Work with Determinant Types Mapping form, click Add to open the Determinant Types Mapping Revision form (W20S09B).
  3. Enter the following mapping for the determinant type:
    • Determinant Type: CON_INSTR
    • Associated Data Item: ALDET20
  4. Click OK to save the changes.
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    Determinants Type Mapping Revision form

3: Defining Activity Type for Purchased Energy – Market-Based Activity Type

  1. From the EnterpriseOne Menus, select Sustainability Framework Setup (G20S41), and then select Activity Types (P20S01).
  2. On the Work with Activity Types form, click Add to open the Activity Type Revision form (W20S01D).
  3. Enter the following values:
    4. Activity Type PE_MARKET
    Activity Type Description Purchased Energy – Market-based Accounting
    Scope 2
    (Optional) Effective Date System Date
    (Optional) Expiration Date 12/31/2050

    On the Determinant Types tab, create three rows, one each for determinant types CON_INSTR, ENERGY_TYP and GRID_REG.

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    Determinant Type tab
    • On the Measure Type tab, enter measure type QUANTITY in the Measure Type field.
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    Measure Type tab
    • (Optional) On the Emission Types tab, enter CO2 in the Emission Type field.
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    Emission Type tab
  4. Click OK to save the changes.

4: Defining Activity Source

To account for the electricity purchased as part of the contractual instrument, we will set up ELE_AKGD_REC (Electricity Renewable - REC) as the activity source.

  1. From the EnterpriseOne Menus, select Sustainability Framework Setup (G20S41), and then select Activity Source (P20S07).
  2. On the Work with Activity Source form, click Add to open the Activity Source Revision form (W20S07C).
  3. Enter the following values:
    4. Activity Source ELE_AKGD_REC
    Activity Source Long Description Electricity Renewable - REC
    Activity Long Description Electricity Renewable - REC
    Activity Type PE_MARKET
    Transaction Source Blank, as the transaction will be directly recorded

    Enter the values in grid column:

    • Determinant: AKGD, ELECTRICITY, REC-2024-MRETS_123 (for the three determinant type rows)
  4. Click OK to save the changes.
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Activity Source Revision form

5: Entering the Sustainability Activity Record in Activity Ledger (P20S11)

The company can either record transactions individually when it purchases a contractual instrument or it can enter all transactions at once in the ledger if they are purchased in bulk at the end of a year.

  1. From the EnterpriseOne Menus, select Sustainability Framework Processing (G20S10), and then select Sustainability Activity Ledger (P20S11).
  2. On the Sustainability Activity Ledger form, click Add to open the Sustainability Activity Ledger Revision form.
  3. Enter the following values in the header and detail sections:
    4. Supplier 4343
    Business Unit 30
    (Optional field) Activity Date System Date
    Activity Source ELE_AKGD_REC
    Resource Quantity 500
    Resource UoM KW
    Transaction Amount 2000
    (Optional) Remark Market-based-May-2025
  4. Click OK to save the record.
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Sustainability Activity Ledger Revision form

Conclusion

In this OBE, you learned how to create the setup to track Scope 2 – Purchased Energy (Market-based) in JD Edwards EnterpriseOne, improving accuracy and compliance in sustainability and emissions reporting.