Reconciling transactions in the Carbon Ledger
Reconciling transactions in the carbon ledger is where the carbon accounting comes in.
The Introduction to Carbon Accounting Course offers a solid foundation for understanding the basics of carbon accounting and emission classification, so it’s worth completing to build confidence with these concepts. You can also ask more questions about this using Sumd[AI].
Using emission factors
- At the heart of carbon accounting are emission factors. See here for an overview of how they work.
- You confirm the emission factor dataset/s that will be available for selection when you create an assessment.
- As you go through this reconciliation process in the carbon ledger, Sumday will multiply the selected emission factor by the transaction details to provide an equivalent amount of C02-e.
Reconcile transactions with emission sources
To assign a transaction to the correct emission source, use a combination of the General Ledger Account, Supplier, and Transaction Description. These details provide context that guides you to the most accurate emission source.
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Relying solely on the General Ledger Account or Supplier may be suitable for some cases, but using all three fields typically results in a more precise emission source assignment.
Example: A 'Construction' General Ledger Account may contain transactions for wood, metal, concrete, and labor, each with different emissions impacts. Using the General Ledger Account for information only also limits the use of this data for making better sustainability or procurement decisions.
Selecting emission sources
Emission sources group activities into categories, often industry-specific, such as Forestry Products or Consulting. Sometimes sources are even more specific, like Paper or Concrete. Since there might not be a perfect match for every transaction, select the best available fit (while you want this to be as ‘accurate’ as possible, remember this is all based on proxy data so it’s better to focus attention on improving the quality of your data that getting too caught up on which 'average' (emission factor) to use if two seem applicable. The key is to stay consistent.
Using emission factors to guide your selection
As you choose an emission source, you’ll see the available emission factors, which provide detailed emissions data. This information helps you make informed decisions and identify opportunities to improve your assessment quality in the future with more accurate data sources, such as Primary or Activity Data. You can also click on the source link to view the database from which the emission factors are derived, offering transparency into the data's origin.
Achieving efficiency and detail with transaction-level carbon accounting
We understand that transaction-level carbon accounting can feel daunting, especially with the volume of data involved. However, with the right tools, you can streamline the process, gain precise insights, and support proactive decision-making. Here’s how Sumday helps you achieve both efficiency and accuracy without added complexity.
📊 Customisable column management
In the Carbon Ledger table, simply click the 3 dots in the top right to add columns like Tracking Category to tailor the data view to your needs. Adjust column order, size, and visibility for a workspace that makes sense to you. This flexibility lets you see the details that matter most—whether it’s by supplier, GL account, or transaction description—at a glance.
🔻 Sorting
You can sort by any column header to bring similar items together. For added efficiency, use CTRL + click to sort by multiple columns, such as GL Account > Supplier > Amount, to group transactions by account, then by supplier, and highlight high-spend items first. This approach helps you focus on major carbon impact areas quickly and accurately.
💪 Bulk selection
Often, similar transactions share the same emission source. After selecting one transaction, you can hold SHIFT to select a range or click individually to choose specific transactions. This allows you to apply an emissions source to multiple transactions at once, significantly reducing the time spent on repetitive coding.
🧠 Smart suggestions
Once you assign an emission source, Sumday remembers the details and will suggest the same source for similar transactions in the future. Look out for the Smart Suggestion indicator (✨), which provides you with consistent recommendations. Simply review the suggestion to ensure accuracy, then reconcile with confidence.
📝 Rules
Rules allow you to set conditions to automatically assign emission sources, letting you focus on key areas while Sumday handles the routine classifications. For instance, you could create a rule that assigns the Legal Services emission source to transactions from Consulting GL accounts with Lucky Lawyers as the supplier. This level of automation can significantly streamline your workflow while retaining control over categorisation.
Example: Create a rule for “Consulting” GL account with supplier “Lucky Lawyers” to automatically assign the Legal Services emission source.
For a detailed guide, see the Rules Feature.
🗄️ Tracking Categories
Tracking categories let you classify data by meaningful business dimensions, such as location, department, or project. This helps make carbon accounting part of business as usual, enabling you to produce insightful, monthly or quarterly data for stakeholders and driving action, rather than only looking backward once a year.
Example: Track categories by office location to assign transactions like electricity bills to the Burnie HQ, providing specific insights for localised action.
For more information, visit the Tracking Categories Feature.
By leveraging these tools, transaction-level accounting becomes less of a burden and more of an asset, delivering detailed insights efficiently and enabling proactive carbon management across the organisation.