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USE CASE 02

Environmental Credit Purchase

Turn a trade into an auditable environmental asset.

A purchased environmental credit is simultaneously a trade, an inventory item, and a general ledger balance. Most organizations manage those three views in three different places. CCIAM holds a single record that satisfies trading, inventory, and accounting at once — and keeps the reference chain intact between them.

Trigger

An executed purchase arrives from a trading or contract management system.

End state

POSTED
Workflow

Step through the controlled sequence

STEP 01 / 09CCIAM Integration Layer

Trade intake

The executed purchase arrives with trade date, counterparty, program, credit type, vintage, quantity, unit price, and settlement date. The trade reference is preserved as the anchor of the lineage chain.

Controls at this step

  • Trade reference captured and never overwritten
  • Inbound completeness check
  • Source system attribution
Participants

Who does what

Trading system

Transmits the executed trade with counterparty, price, quantity, and settlement terms.

Middle office

Confirms trade economics and resolves counterparty or reference data mismatches.

Compliance analyst

Validates program, credit type, and vintage eligibility for the intended obligation.

Accounting

Reviews the generated accounting event and confirms the posting to the general ledger.

Data model

What the platform records

Trade referenceThe anchor identifier that links every downstream record back to the executed trade.
CounterpartyResolved against master data; supports concentration and credit reporting.
Program, credit type, vintageDetermines eligibility for the obligations the credit is intended to satisfy.
Quantity, unit price, currencyEstablishes the acquisition cost and book basis.
Trade date and settlement dateSeparates economic execution from inventory recognition.
Acquiring legal entityGoverns both the position view and the accounting entity of the posting.
GL document referenceReturned by the general ledger and used as the reconciliation key.
Control environment

The controls that make it defensible

Inventory recognition occurs at settlement, not at execution.
A trade with an unresolved counterparty or unmapped instrument cannot create inventory.
Acquisition cost is captured at the inventory-layer level so retirement cost is determinable.
Transmission state to the general ledger is explicit — posted, pending, and failed are distinguishable.
The general ledger document reference is stored and used as the key for three-way reconciliation.
Failure modes

What can go wrong, and what happens next

Unresolved counterparty

Cause

The counterparty on the trade does not match approved master data.

Resolution path

Middle office resolves or onboards the counterparty; the trade is reprocessed with the resolved reference.

Unmapped instrument

Cause

The traded instrument does not map to a known program and credit type.

Resolution path

Reference data is extended and the mapping is recorded with its effective date.

Settlement failure

Cause

Settlement did not occur on the expected date.

Resolution path

Forward position is adjusted and the exception ages until settlement completes or the trade is cancelled.

Posting rejected by the general ledger

Cause

Account determination, period status, or entity configuration prevented the posting.

Resolution path

Accounting corrects the determination; the event is re-transmitted and the failure is retained on the audit record.

Missing document reference

Cause

The posting was transmitted but no document reference returned.

Resolution path

Exception raised before close; the balance is not treated as reconciled until the reference is received.

Systems involved

Integration surface

  • Trading and contract management systems
  • Counterparty and legal entity master data
  • Program registry
  • General ledger (SAP or equivalent)
Audit trail

Evidence retained

  • Executed trade record as received
  • Counterparty and legal entity resolution decision
  • Eligibility determination with rule version
  • Settlement confirmation and inventory creation event
  • Acquisition cost record at the inventory-layer level
  • Accounting event and returned general ledger document reference
Outcome

What changes for the organization

01A purchased credit exists once, with a single reference chain from trade to ledger balance.
02The position reflects settled control rather than executed intent, with forward exposure visible separately.
03Book basis is established at acquisition, so retirement cost and valuation are determinable without reconstruction.
04Unposted and rejected accounting events are visible before close rather than discovered during it.
Previous use case

Environmental Credit Generation

Next use case

Compliance Retirement

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