Case Study Exercise: Traceability and Accounting at GreenPellets Sdn Bhd #
Background: GreenPellets Sdn Bhd operates an oil palm biomass processing facility that manufactures Empty Fruit Bunch (EFB) pellets. To meet various customer demands, the facility sources raw materials from multiple suppliers. Some suppliers are MSPO CoC certified, while others are not.
Due to space constraints at their processing site, GreenPellets cannot maintain separate storage silos. Therefore, the MSPO certified EFB and the non-certified EFB are received, stored, and processed together in the same physical production line.
The management has decided to reconcile their production data on a quarterly basis (every three months).
Production Data for Quarter 1 (January 1st – March 31st):
- Total inputs received: 20,000 Metric Tonnes (MT) of EFB.
- MSPO Certified EFB inputs: 12,000 MT
- Non-certified EFB inputs: 8,000 MT
- Total outputs supplied: 18,000 MT of EFB pellets.
- Outputs sold as MSPO Certified: 9,000 MT
- Outputs sold as Non-certified: 9,000 MT
Participant Questions: #
Question 1: Traceability Model Based on how GreenPellets Sdn Bhd handles their raw materials, identify and justify which MSPO Traceability Model they are using. Why can they not use the alternative model?
Question 2: Accounting System Which specific accounting system is GreenPellets Sdn Bhd applying to monitor their certified biomass trade? Justify your answer based on the timeframe used in the scenario.
Question 3: Credit Status and Rules At the end of Quarter 1 (March 31st), what is the exact quantity that GreenPellets Sdn Bhd can claim as an “unused credit”? Furthermore, explain the specific rules under the MS 2751:2022 standard for carrying this credit forward into the next periods.