Review and reconciliation

Once data starts flowing into Position Green, review and reconcile the data. Data can come from different sources, and there is always a risk of double reporting.

Include someone from accounting, finance, or the CFO function in this process.

Suggested review checklist

ERP integrations provide accounting data. Depending on how expenses are accounted for, data can be classified in different ways.

Follow these steps the first time an integration is set up:

1. Sync the integration for the full last completed accounting year. This is usually the previous calendar year, but some companies have a different fiscal year. Use the company standard.
2. Verify that the total amounts are as expected from accounting, finance, or the CFO function. Position Green usually excludes some transactions based on account code, such as accrual accounting that is not part of the GHG Protocol standard. This can cause the total costs interpreted by Position Green to deviate from the costs considered relevant by accounting or finance. If possible, verify accounted amounts per account code and reconcile them with the general ledger.
3. Verify that accounting codes are included in the integration and match the selected account settings.
4. Verify that supplier names are received. Check the list of largest suppliers and reconcile it with accounting.
5. Verify the largest transactions by sorting on CO₂e in the transaction table.
6. Verify that any additional accounting dimensions of interest are received. Some companies track emissions per project, customer, or product sold. This data is usually accounted for as dimensions in the accounting system, and Position Green reads them as labels.
7. Verify that the correct industry and country have been found for each supplier. Follow the Pareto principle, or 80/20 rule, when verifying data. There is little value in verifying every single data point and emission source. Focus on the largest 20% of suppliers or accounts, which usually represent around 80% of emissions.

Example of transaction review in the transaction table.

After review and reconciliation are complete, set up a regular sync for the integration. Any changes made to integration settings during the review process are remembered and used the next time Position Green receives data from the integration.

General information about received data

Integrations, Activity Capture, and manual uploads are normalized into the Position Green data model. Review the following fields to make sure the data can be used correctly.

Transaction or voucher ID

• Used to identify the transaction and avoid double counting. Position Green uses the transaction ID to run duplication checks and avoid double accounting over the same period.
• If this is wrong, there is a risk of double reporting because the duplication check will not work as intended.
• Verify that Position Green receives a transaction ID for each transaction and that it is unique per transaction.

Supplier name and org.number

• Used to identify the supplier linked to the transaction. This helps find the right spend factor and GHG category, group purchases from the same supplier, and link emissions to suppliers for Scope 3 work.
• If the supplier name or org.number is wrong or missing, the EEIO algorithm becomes less accurate. There is also a risk that categorization work is not remembered the next time data is received from that supplier.
• Verify that all transactions have a supplier and that the supplier name is correct. If it is wrong, check whether the supplier is registered correctly in the ERP system or contact support.

Accounting code

• Used to classify the purchase into the right GHG category. Position Green does not use the accounting code to classify the emission factor, because the supplier and purchased product are more accurate for finding the emission factor. Read more in account settings.
• Verify that the received account codes match the accounting standard selected in account settings.

Currency and transaction amount

• Used for spend estimations and to understand costs for activity-based emission sources.
• Verify that Position Green reads the correct amounts by checking that the total amount matches the expected total costs. Consider doing random sample checks.
• If currency is missing, Position Green uses the standard currency selected for the company. Different currencies are normalized to USD to compare transaction amounts and calculate spend emissions.

Dimensions and labels

• Most ERP systems use dimensions to group and categorize transactions, such as departments, projects, locations, offices, customers, or products. Position Green stores these as different label types.
• Verify that Position Green receives the dimensions of interest.