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Work with carbon credit

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When companies can't reduce their emissions for various reasons, they can purchase carbon credits to offset their emissions. By buying carbon credits, a company can still emit the equivalent amount of gases while remaining carbon neutral. These credits are purchased from specialized providers, incentivizing emission reductions.

In general, carbon credits are permits that allow the owner to emit a certain amount of carbon dioxide (CO₂) or other greenhouse gases (GHGs). One carbon credit typically represents the right to emit one metric ton of CO₂ or an equivalent amount of another GHG, so it's important to enable this option for some organizations.

Set up the carbon credit

Carbon Credit in Business Central can be set as the Item. To set up the Item as a carbon credit, follow the steps:

  1. Select the Lightbulb that opens the Tell Me feature. icon, enter Items, and then select the related link.
  2. Create new item as explained.
  3. Once the item is created, select the GHG Credit field on the Sustainability FastTab and add the value of carbon credit using the Carbon Credit Per UOM field.

Note

Carbon Credit Per UOM represents the amount of CO₂ in the unit of measure configured in the Emission Unit of Measure Code in the Sustainability Setup. So, this means the total value of carbon credit is the amount of credited CO₂ per one Base Unit of Measure of used item.

Note

You can set up any type of item, whether it's inventory, service, or non-inventory, as a carbon credit.

To purchase carbon credit

Purchase documents

To work with any purchase-related documents, follow the steps:

  1. Select the Lightbulb that opens the Tell Me feature 3. icon and:
    1. Enter Purchase Invoices if you want invoice as a Document Type, and then select the related link.
    2. Enter Purchase Orders if you want order as a Document Type, and then select the related link.
  2. Populate the document header based on the following instruction how to work with purchase invoices and orders.
  3. Choose the item configured as a carbon credit in the No. field in the purchase document lines, and add appropriate Quantity and Direct Unit Cost.
  4. Add the Sustainability Account No. you would use for decreasing your carbon dioxide (CO₂) value. The system will automatically populate the value in the Emission CO2 field based on the value you have configured in the Carbon Credit Per UOM field on the Item card.
  5. Post the document.

Note

Although carbon credit will decrease the value of entries, you'll see a positive amount of value in the Emission CO2. But once you post the document, you'll see a value with a negative sign in the Sustainability Ledger Entry with the GHG Credit as a Document Type.

Sustainability journals

To work with Sustainability Journal follow these steps:

  1. Select the Lightbulb that opens the Tell Me feature 3. icon, enter Sustainability Journal, and then select the related link.
  2. On the Sustainability Journal page, enter as many lines as you intend to post in the same batch.
  3. Choose the GHG Credit in the Document Type field.
  4. In the Account No. field, you can select only non-blocked sustainability accounts where the Direct Posting field is selected and the Accounting Type field is set to Posting. The accounts must also be configured with a category and a subcategory. Choose the appropriate account to post-carbon credits.
  5. Select Manual Input and enter the value you want to post as a carbon credit to the Emission CO2 field.
  6. Post the journal.

See also

Finance
Record sustainability entries
Sustainability management overview
Sustainability Setup
Chart of Sustainability Accounts and Ledger
Ad-hoc analysis of sustainability data
Sustainability reports and analytics in Business Central
Sustainability API
Work with Business Central

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