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Accounting Academy

MODULE 1: Fundamentals

MODULE 2: Calculations

MODULE 3: Batch Partitioning & LCA

MODULE 4: Mass Balance with Ledgers

MODULE 5: Integration Testing

MODULE 6: Advanced Patterns & Production

Documentation Index

Fetch the complete documentation index at: https://docs.mangrovesystems.com/llms.txt

Use this file to discover all available pages before exploring further.

What you’ll build in this exercise:
  • Design a 3-ledger structure for the Mangrove Biochar project
  • Create 3 batch types: Feedstock Receipt, Biochar Produced, Carbon Delivered
  • Create 3 ledgers and configure allocations between them
  • Add test data across all stages and verify that mass balance holds
This exercise brings together everything from Module 4: you’ll design and build a multi-ledger mass balance system for Mangrove Biochar. By the end, material will flow from feedstock receipt through biochar production to carbon delivery — with ledger balances that reconcile at every stage. Prerequisites: Complete Lesson 4.1, Lesson 4.2, and Lesson 4.3. Your project should have the batch partitioning and LCA setup from the Module 3 exercise.

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Part 1: Design (30 min)

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1. Identify accumulation points

Map the physical process for Mangrove Biochar. Where does material “sit” before moving to the next stage?
StageAccumulation PointWhat Happens Here
1Feedstock inventoryBiomass is received and stored before pyrolysis
2Biochar producedBiochar is produced from pyrolysis and stored before delivery
3Carbon deliveredBiochar is delivered to a site and sequestered

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2. Define each ledger

For each accumulation point, define the ledger attributes:
LedgerUnitCredit Source (batch type)Debit Source
Feedstock InventoryDry tonnesFeedstock Receipt batchesAllocation to Biochar Production
Biochar ProductionBiochar tonnesBiochar Produced batchesAllocation to Carbon Delivered
Carbon DeliveredtCO2eCarbon Delivered batchesAllocation to reports

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3. Map allocations between ledgers

Define how material flows between ledgers:
FromToMethodConversion
Feedstock InventoryBiochar ProductionBy production run — each run consumes feedstockFeedstock consumed (dry tonnes) → biochar produced (biochar tonnes) using yield ratio
Biochar ProductionCarbon DeliveredBy delivery — each delivery draws from produced inventoryBiochar delivered (tonnes) → carbon sequestered (tCO2e) using carbon content % and CO2 conversion
The conversion factors are project-specific. For Mangrove Biochar, a typical yield ratio is ~30% (5 dry tonnes feedstock → 1.5 tonnes biochar) and carbon content is ~80% (1.5 tonnes biochar × 0.80 × 3.67 = 4.4 tCO2e).

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Part 2: Build in Mangrove (1.5 hrs)

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Step 1: Create 3 batch types

In your project’s Production Accounting settings, create these batch types:

Feedstock Receipt

SettingValue
PartitionPer-delivery
Tracking IDSupplier ticket #
Primary outputDry mass (tonnes)
Source eventsFeedstock Delivery

Biochar Produced

SettingValue
PartitionPer production run
Tracking IDRun ID
Primary outputBiochar mass (tonnes)
Source eventsProduction Run

Carbon Delivered

SettingValue
PartitionPer-delivery
Tracking IDDelivery ticket #
Primary outputNet tCO2e
Source eventsBiochar Delivery

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Step 2: Create 3 ledgers

Create a ledger for each stage and link it to the corresponding batch type:
1

Feedstock Inventory ledger

Unit: dry tonnes. Credited by Feedstock Receipt batches.
2

Biochar Production ledger

Unit: biochar tonnes. Credited by Biochar Produced batches. Receives allocations from Feedstock Inventory.
3

Carbon Delivered ledger

Unit: tCO2e. Credited by Carbon Delivered batches. Receives allocations from Biochar Production.

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Step 3: Configure allocations

Set up the material flow between ledgers:
  1. Feedstock Inventory → Biochar Production
    • When a Production Run batch is created, it should consume feedstock from Ledger 1
    • Configure the allocation to debit from Feedstock Inventory based on feedstock consumed per run
    • Apply the yield ratio conversion (e.g., 5t feedstock → 1.5t biochar)
  2. Biochar Production → Carbon Delivered
    • When a Carbon Delivered batch is created, it should draw from Ledger 2
    • Configure the allocation to debit from Biochar Production based on biochar delivered
    • Apply the carbon content conversion (e.g., biochar tonnes × carbon % × 3.67 = tCO2e)

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Step 4: Create test data

Add events representing one month of operations across all stages: 2 Feedstock Deliveries:
DeliveryDateDry Mass (t)Supplier
FS-001Jan 35Farm A
FS-002Jan 108Farm B
2 Production Runs:
RunDateFeedstock Consumed (t)Biochar Produced (t)
PR-001Jan 751.5
PR-002Jan 1482.4
2 Biochar Deliveries:
DeliveryDateBiochar Delivered (t)Carbon Content %
DEL-001Jan 151.580%
DEL-002Jan 222.480%

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Step 5: Generate batches and verify mass balance

  1. Go to Production Accounting and generate batches for January.
  2. Verify that 6 batches are created (2 per stage).
  3. Check each ledger’s balance:
LedgerExpected CreditsExpected DebitsExpected Balance
Feedstock Inventory+5t, +8t = 13t-5t, -8t = -13t (allocated to production)0t (all consumed)
Biochar Production+1.5t, +2.4t = 3.9t-1.5t, -2.4t = -3.9t (allocated to delivery)0t (all delivered)
Carbon Delivered+4.4 tCO2e, +7.0 tCO2e = 11.4 tCO2eNone yet (not reported)11.4 tCO2e
If ledger balances don’t reconcile, check: (1) allocations are configured correctly between ledgers, (2) conversion factors match your test data, (3) each batch type credits the correct ledger.

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Step 6: Verify end-to-end traceability

For each Carbon Delivered batch, trace the chain back to the source:
  1. Open a Carbon Delivered batch (e.g., DEL-001, 4.4 tCO2e)
  2. Verify it links to a Biochar Produced batch (PR-001, 1.5t biochar)
  3. Verify that links to a Feedstock Receipt batch (FS-001, 5t feedstock)
  4. Confirm the conversion math: 5t × 30% yield = 1.5t biochar × 80% carbon × 3.67 = 4.4 tCO2e

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Success criteria

You have completed the Module 4 exercise when:
  • 3 batch types created — Feedstock Receipt, Biochar Produced, Carbon Delivered
  • 3 ledgers created — Feedstock Inventory (dry tonnes), Biochar Production (biochar tonnes), Carbon Delivered (tCO2e)
  • Allocations configured — material flows from Ledger 1 → Ledger 2 → Ledger 3 with appropriate conversion factors
  • Test data created — at least 2 events per stage (feedstock deliveries, production runs, biochar deliveries)
  • 6 batches generated — 2 per stage, each crediting the correct ledger
  • Ledger balances reconcile — credits minus debits match expected values at each stage
  • End-to-end traceability — any Carbon Delivered batch can be traced back through production to the original feedstock receipt

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What’s next

You now have a complete multi-stage mass balance system. In Module 5: Integration Testing you’ll learn how to test your full project end-to-end — verifying that events, models, batches, ledgers, and reports all work together correctly.