Sustainability accounting works slightly differently than financial accounting. Where you close a financial year financially and continue, it is very important with sustainability that you can continue to compare apples with apples in a good way over several years. This may mean that calculation methods are adjusted or the organizational structure must be adjusted retroactively in order to maintain a correct reference year. SmartTrackers is flexible, so everyone can choose the method and consolidation method that fits best.
The demarcation of an organization takes place around the legal entities. Departments, processes and buildings that are recorded as an entity are considered part of a legal entity. Of course, these can be terminated when they are no longer relevant (a building is sold off), but the emissions in the past remain part of the legal entity in question. An entity can be terminated via the menu option: Organization and click on the relevant component and the option adjust. The associated meters are also closed immediately, so that no more data is accidentally entered. This is a reversal process in the system.
For example, for a legal entity that is sold, in addition to terminating the entity, the percentage must also be adjusted to 0. The system will then no longer include emissions in the past and therefore the base year.
If a company is taken over and you want to retain the reference year, make sure that the past is updated. If possible, based on available data and otherwise based on estimated data. This can be done, for example, by estimating the emissions of the past based on the turnover ratio based on a known year.
If the reference year is still not a good enough reflection of the current emissions within an organization, it is also possible to choose to adjust the reference year. This can be done under general settings. Make sure that the objectives are also calculated with respect to a new reference year and be aware that a comparison with previous years is no longer done by the system as standard. Incidentally, it is always possible to make the old trend line visible within the graph.
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