IMOS - FuelEU Pool Journals

Introduction

To stabilize the Voyage P&L across voyages where certain voyages burn fossil fuels and other biofuels and maintain Fuel EU compliance, you can now use pooling and journaling workflows available within the Fuel EU tab of the TC Contract. This functionality has been enabled with the configuration flag CFGEnableFuelEUPoolJournals.

FuelEU pooling refers to how companies organize their vessels and companies for the FuelEU regulation. These pools are created and submitted to the European Union. The organization of these pools is usually done on the compliance level. This topic is not related to the pooling module.

Setup

1. Go to the Data Center and select Settings. Select the + icon and type the configuration flag name, CFGEnableFuelEUPoolJournals, as shown in the following image.

2. On the Financials menu, under Setup, select Chart of Accounts. Add FuelEU Account(s) for Rev/Exp as needed, as shown in the following image.

   1. In this example, we set up three codes for three pools.

3. On the Data Center menu, under Other, select Operations Ledger. Add a new record(s) with the new FuelEU Category “FEU” as shown in the following image.

   1. Note: only Operations Ledger codes set to FEU are available for selection in the FuelEU Pool Journal screen.

4. On the Financials menu, under Setup, select Business Rules.

   1. Source column equals FEIJ

   2. Code column refers to the Operations Ledger codes from step three.

   3. Account column is set to an example FuelEU expense account (standard FuelEU setup).

   4. Credit Acc refers to the Chart of Accounts created in step two.

The Emissions UI on Contracts is now split into EU ETS and FuelEU tabs so that the Journal account can be selected. 

Vessel / Voyage Examples

Time Charter In

Only Operations Ledger codes set to the FuelEU Pool (FEU) category will be available for selection in the FuelEU Journal table; once set up, the journals can be manually created and support both positive and negative values from the selected voyage.

•  A positive expense will create a journal from the Fossil Fuel Voyage to the Pool

•  A negative expense will create a journal from the pool to the Biofuel voyage

Compliance Balance (MT) and Compliance Price/MT in FuelEU Journals

This feature requires a minimum schema version of 512 and the configuration flag CFGFuelEUCompliancePricing to be enabled.

When creating a FuelEU Journal entry on the TC, the Compliance Balance details from the selected Voyage are added as new columns in the Voyage Carbon Calculator.

On the TC Contract under the FuelEU tab, there are two new columns:

• CB (MT) - This default value is from the Agreed Compliance Balance on the Carbon Calculator

• CM Price/MT - This default value is from the Compliance Price/MT on the Carbon Calculator

When a FuelEU Journal is created, the journal description includes the MT and compliance price, which can be reported on and appear in the Voyage P&L alongside other line items, such as bunkers and Carbon allowance expenses.

Voyage

The journals are created under the invoice list automatically and can be invoiced. 

Invoice and Approve, and Post 

Here is an example invoice with a FuelEU Penalty.

The Journal Entry shows the correct Debit and Credit for the penalty result of the Voyage – 

• Voyage 1 example - Only fossil fuels are consumed, resulting in a penalty.

• Voyage 2 example - Biofuel consumed, resulting in a negative penalty.

• Here is an Account Analysis example report.