What's New in Sustainability: Reporting for CBAM and EPR

Overview

The video walks through the sustainability compliance functionality for two EU-driven requirements: the Carbon Border Adjustment Mechanism (CBAM) and Extended Producer Responsibility (EPR). It covers the business value, the prerequisites and the setup, then demonstrates each scenario end to end.

For CBAM, the demo sets up a carbon pricing table, configures an item with carbon emissions, posts a purchase invoice and calculates in the excise journal. For EPR, it sets up EPR materials and item material composition, posts a sales invoice and processes the excise journal. It closes with a review of the excise transaction logs.

Key points

• CBAM applies to purchase documents and EPR applies to sales documents; both run on the new excise taxes framework.
• CBAM needs a carbon pricing table set up per country, with start and end dates, unit of measure, price per unit and a threshold so small amounts are not reported.
• Only items marked as CBAM-compliant are calculated, and the item needs at least a carbon emission value. Whether the emission is verified is also recorded on the item.
• For country of origin, the system first uses the country on the item card. If there is none, it falls back to the vendor’s country.
• The excise journal needs a separate batch for CBAM and for EPR, with at least one batch of each type.
• EPR does not apply to all item types. The item needs an EPR category and a material composition, and the composition status must change from new to certified.
• The EPR materials table holds material name, unit of measure, EPR fee and verification date. The item material composition page works like a bill of materials.

Features

Every feature below: status not stated, demoed.

AL objects mentioned

As heard in the captions. A name that matches one object page by exact type and name links to it; the others stay as named.

• table “Carbon pricing table” at 2:55
• page “Carbon pricing page” at 2:55
• table “EPR materials” at 3:06
• page “Item material composition” at 3:17
• page “Excise journal” at 7:30
• page “Excise transaction logs” at 8:51
• page “Sustainability fast tab” at 5:35

Not found in BC28-30: table “Carbon pricing table”, page “Carbon pricing page”, table “EPR materials”, page “Item material composition”, page “Excise journal”, page “Excise transaction logs”, page “Sustainability fast tab”.

Quotes

• 0:22 “CBM is carbon border adjustment mechanism”
• 2:25 “first two calculation we introduced were uh CBM and EPR based on a set some set of specific rules for calculations”
• 2:55 “you need to set up first setup uh carbon pricing table new table new page you will find”
• 3:45 “CBM applies to purchase documents and on other side EPR applies to sales documents”
• 8:27 “system will first uh look if there is country of a region of item. If there is country of a region on item card”
• 9:55 “it doesn’t apply to all item types. If this is packaging or electronics, so it depends what is about”
• 13:09 “you need to have created batch for both CBM and EPR different batch. You can have more of them but minimum you need to”
• 14:54 “this is something what is really mandatory by many regulations especially European Union. So this is good you can automate”

Presenters (as heard): Unknown presenter.