IMOS - Carbon Emissions Business Rules

Introduction to Carbon Emission Business Rules

These business rules define how IMOS posts EU ETS, FuelEU, and UK ETS Maritime transactions to the General Ledger. Each row maps a transaction source and code combination to the accounts that should be debited and credited, so emissions costs flow through the Voyage P&L and into the GL consistently, regardless of which counterparty owns the obligation or how the cost is ultimately settled.

The rules cover the full lifecycle of an emissions charge. Uninvoiced entries accrue the expected cost against an expense account while the obligation is still open. Cash and allowance invoices recognize the cost once it is billed by the counterparty, with allowance invoices also booking a liability for the EUA volume owed. Transfer entries move allowances between the liability account and the ETS inventory (asset) account when they are surrendered or rebilled, and price-difference and exchange-rate-difference entries true up accruals when market prices or FX rates move between recognition and settlement.

The rules are organized by relationship: TCI (uninvoiced and invoiced by the TC In owner), Head Fixture, VC In, and the rebill paths to TCO charterers and cargo charterers. FuelEU follows the same pattern, with penalty accruals, pool journal entries that credit the pool account, and invoiced penalties recognized through the TC, freight, and relet invoice flows.

The OHCARBON, OHPENALTY, OHUKETS, and OHVFEUE codes are the offhire counterparts of CARBON, PENALTY, UKETS and VFEUE. They post to the same account types but keep offhire-period emissions costs identifiable in the ledger, so users can see how much of a voyage's EU ETS and FuelEU exposure was generated while the vessel was offhire.

The EMSx Sources in the tables below are for Month-end Accruals of the un-invoiced Emissions Expense / Emissions Expense (Rebill) line items on the Voyage P&L.
When running accrual by accounts (CFGVoyaccAccrualType = Act*), the EMSx:CARBON rule will drive the MACR rule. These rules require the MACR rules for each account associated to EMSx.
When accrual by ops (CFGVoyaccAccrualType = Ops) then rule will be MACR:CARBONEXPENSES for expenses and MACR:CARBONEXPENSESREBILL for expense rebills.
For Allowance Trading settlements, an additional set of Source Codes are utilized https://vesonjira.atlassian.net/wiki/x/OYCwF .
If CFGApplyAllowancePriceDiffToPnL is set to Y, TCCT: CARBDIFFERENCE, OVCT:CARBDIFFERENCE and VOCT: CARBDIFFERENCE business rules are also to be set up with an Expense account.

Business Rules for EU ETS

Source	Code	Nature	Ledger	Credit Acct
Uninvoiced TCI
EMSN	CARBON	Uninvoiced	Expense Account
EMSN	OHCARBON	Uninvoiced	Expense Account
Uninvoiced Head Fixture
EMSO	CARBON	Uninvoiced	Expense Account
EMSO	OHCARBON	Uninvoiced	Expense Account
Uninvoiced VC In Owner
EMSI	CARBON	Uninvoiced	Expense Account
EMSI	OHCARBON	Uninvoiced	Expense Account
Uninvoiced Rebill to TCO Charterer
EMSR	CARBON	Uninvoiced	Expense Account
EMSR	OHCARBON	Uninvoiced	Expense Account
Uninvoiced Rebill to Cargo Charterer
EMSC	CARBON	Uninvoiced	Expense Account
EMSC	OHCARBON	Uninvoiced	Expense Account
Invoiced by TCI Owner
TCCI	CARBON	Cash Invoice	Expense Account
TCCI	OHCARBON	Cash Invoice	Expense Account
TCCA	CARBON	Allowance Invoice	Expense Account	Liability Account
TCCA	OHCARBON	Allowance Invoice	Expense Account	Liability Account
TCCT	CARBON	Transfer	Liability Account	ETS Inventory (Asset) Account
TCCT	CARBPRICEDIFF	Not Invoiced, accrual only	Expense Account	Liability Account
TCCT	XDIFF	Not Invoiced, accrual only	Exchanged Rate Diff Account (Expense Account)	Liability Account
Invoiced by Head Fixture Counterparty
OVCI	CARBON	Cash Invoice	Expense Account
OVCI	OHCARBON	Cash Invoice	Expense Account
OVCA	CARBON	Allowance Invoice	Expense Account	Liability Account
OVCA	OHCARBON	Allowance Invoice	Expense Account	Liability Account
OVCT	CARBON	Transfer	Liability Account	ETS Inventory (Asset) Account
OVCT	CARBPRICEDIFF	Not Invoiced, accrual only	Expense Account	Liability Account
OVCT	XDIFF	Not Invoiced, accrual only	Exchange Rate Diff Account (Expense Account)	Liability Account
Invoiced by VC In Owner
VICI	CARBON	Cash Invoice	Expense Account
VICI	OHCARBON	Cash Invoice	Expense Account
VICA	CARBON	Allowance Invoice	Expense Account	Liability Account
VICA	OHCARBON	Allowance Invoice	Expense Account	Liability Account
VICT	CARBON	Transfer	Liability Account	ETS Inventory (Asset) Account
VICT	CARBPRICEDIFF	Not Invoiced, accrual only	Expense Account	Liability Account
VICT	XDIFF	Not Invoiced, accrual only	Exchange Rate Diff Account (Expense Account)	Liability Account
Rebilled to TCO Charterer
TOCI	CARBON	Cash Invoice	Expense Account
TOCI	OHCARBON	Cash Invoice	Expense Account
TOCA	CARBON	Allowance Invoice	Expense Account	Liability Account
TOCA	OHCARBON	Allowance Invoice	Expense Account	Liability Account
TOCT	CARBON	Transfer	ETS Inventory (Asset) Account	Liability Account
TOCT	CARBPRICEDIFF	Not Invoiced, accrual only	Expense Account	Liability Account
TOCT	XDIFF	Not Invoiced, accrual only	Exchange Rate Diff Account (Expense Account)	Liability Account
Rebilled to Cargo Charterer
VOCI	CARBON	Cash Invoice	Expense Account
VOCI	OHCARBON	Cash Invoice	Expense Account
VOCA	CARBON	Allowance Invoice	Expense Account	Liability Account
VOCA	OHCARBON	Allowance Invoice	Expense Account	Liability Account
VOCT	CARBON	Transfer	ETS Inventory (Asset) Account	Liability Account
VOCT	CARBPRICEDIFF	Not Invoiced, accrual only	Expense Account	Liability Account
VOCT	XDIFF	Not Invoiced, accrual only	Exchange Rate Diff Account (Expense Account)	Liability Account

Business Rules for FuelEU

Source	Code	Ledger	Credit Acct
Uninvoiced TCI
FEUP	PENALTY	Expense Account
FEUP	OHPENALTY	Expense Account
Uninvoiced HF
FEUO	PENALTY	Expense Account
FEUO	OHPENALTY	Expense Account
Uninvoiced By VC In
FEUI	PENALTY	Expense Account
FEUI	OHPENALTY	Expense Account
Uninvoiced TCO Rebill
FEPR	PENALTY	Expense Account
FEPR	OHPENALTY	Expense Account
Uninvoiced Cargo Rebill
FEUC	PENALTY	Expense Account
FEUC	OHPENALTY	Expense Account
TCI Fuel EU Pool Journal
FEIJ	PENALTY	Expense Account	Pool Account
FEIJ	OHPENALTY	Expense Account	Pool Account
Head Fixture Fuel EU Pool Journal
FEOJ	PENALTY	Expense Account	Pool Account
FEOJ	OHPENALTY	Expense Account	Pool Account
TCI Invoiced via TC invoice
TCIP	VFEUE	Expense Account
TCIP	OHPENALTY	Expense Account
TCO Invoiced via TC invoice
TCOB	VFEUE	Expense Account
TCOB	OHPENALTY	Expense Account
Cargo invoice via freight invoice
FINV	VFEUE	Expense Account
FINV	OHVFEUE	Expense Account
VC In invoiced via relet invoice
RINV	VFEUE	Expense Account
RINV	OHVFEUE	Expense Account

Business Rules for UK ETS

Note: Features/workflows related to UK ETS carbon allowances and off-hire are currently in development, and will be released in the near future. The Business Rules related to these workflows are here for reference only.

Source	Code	Nature	Ledger	Credit Acct
Uninvoiced TCI
EMSN	UKETS	Uninvoiced	Expense Account
EMSN	OHUKETS	Uninvoiced	Expense Account
Uninvoiced Head Fixture
EMSO	UKETS	Uninvoiced	Expense Account
EMSO	OHUKETS	Uninvoiced	Expense Account
Uninvoiced VC In Owner
EMSI	UKETS	Uninvoiced	Expense Account
EMSI	OHUKETS	Uninvoiced	Expense Account
Uninvoiced Rebill to TCO Charterer
EMSR	UKETS	Uninvoiced	Expense Account
EMSR	OHUKETS	Uninvoiced	Expense Account
Uninvoiced Rebill to Cargo Charterer
EMSC	UKETS	Uninvoiced	Expense Account
EMSC	OHUKETS	Uninvoiced	Expense Account

Invoiced by TCI Owner
TCCI	UKETS	Cash Invoice	Expense Account
TCCI	OHUKETS	Cash Invoice	Expense Account

TCCA	UKETS	Allowance Invoice	Expense Account	Liability Account
TCCA	OHUKETS	Allowance Invoice	Expense Account	Liability Account
TCCT	UKETS	Transfer	Liability Account	ETS Inventory (Asset) Account
TCCT	UKETSPRICEDIFF	Not Invoiced, accrual only	Expense Account	Liability Account
TCCT	XDIFF	Not Invoiced, accrual only	Exchnage Rate Diff Account (Expense Account)	Liability Account
Invoiced by Head Fixture Counterparty
OVCI	UKETS	Cash Invoice	Expense Account
OVCI	OHUKETS	Cash Invoice	Expense Account

OVCA	UKETS	Allowance Invoice	Expense Account	Liability Account
OVCA	OHUKETS	Allowance Invoice	Expense Account	Liability Account
OVCT	UKETS	Transfer	Liability Account	ETS Inventory (Asset) Account
OVCT	UKETSPRICEDIFF	Not Invoiced, accrual only	Expense Account	Liability Account
OVCT	XDIFF	Not Invoiced, accrual only	Exchnage Rate Diff Account (Expense Account)	Liability Account
Invoiced by VC In Owner
VICI	UKETS	Cash Invoice	Expense Account
VICI	OHUKETS	Cash Invoice	Expense Account
VICA	UKETS	Allowance Invoice	Expense Account	Liability Account
VICA	OHUKETS	Allowance Invoice	Expense Account	Liability Account
VICT	UKETS	Transfer	Liability Account	ETS Inventory (Asset) Account
VICT	UKETSPRICEDIFF	Not Invoiced, accrual only	Expense Account	Liability Account
VICT	XDIFF	Not Invoiced, accrual only	Exchnage Rate Diff Account (Expense Account)	Liability Account
Rebilled to TCO Charterer
TOCI	UKETS	Cash Invoice	Expense Account
TOCI	OHUKETS	Cash Invoice	Expense Account
TOCA	UKETS	Allowance Invoice	Expense Account	Liability Account
TOCA	OHUKETS	Allowance Invoice	Expense Account	Liability Account

TOCT	UKETS	Transfer	ETS Inventory (Asset) Account	Liability Account
TOCT	UKETSPRICEDIFF	Not Invoiced, accrual only	Expense Account	Liability Account
TOCT	XDIFF	Not Invoiced, accrual only	Exchnage Rate Diff Account (Expense Account)	Liability Account
Rebilled to Cargo Charterer
VOCI	UKETS	Cash Invoice	Expense Account
VOCI	OHUKETS	Cash Invoice	Expense Account
VOCA	UKETS	Allowance Invoice	Expense Account	Liability Account
VOCA	OHUKETS	Allowance Invoice	Expense Account	Liability Account
VOCT	UKETS	Transfer	ETS Inventory (Asset) Account	Liability Account
VOCT	UKETSPRICEDIFF	Not Invoiced, accrual only	Expense Account	Liability Account
VOCT	XDIFF	Not Invoiced, accrual only	Exchnage Rate Diff Account (Expense Account)	Liability Account

Introduction to Carbon Emission Business Rules

Additional Notes Related to the Setup

Business Rules for EU ETS

Business Rules for FuelEU

Business Rules for UK ETS