Verification Procedures for Chain of Custody Input Allocation Ledgers
Verify chain of custody allocation ledgers by reconciling raw fiber dry mass, mill yield factors, and timestamped credit balances against outbound invoices.
Input Allocation Ledger
Ledger Mechanics
Mass balance accounting systems are used to distribute the environmental attributes of recycled or certified pulp across a mill’s output. The input allocation ledger records the exact quantities of sustainable pulp received at the mill and matches them with the volumes of finished paperboard sold with environmental claims. This accounting method does not require the certified fibre to be physically present in every sheet of paperboard produced.
It maintains a strict balance between inputs and outputs to ensure that total environmental claims never exceed the volume of certified materials purchased.
Balance Sizing
Ledger operations extend over a defined period, which is typically a single month or quarter. If the volume of certified material processed exceeds the certified sales in a given period, the excess can be rolled over to the next period. This flexibility allows mills to manage fluctuations in raw material supply and paperboard demand without losing the value of their certified inputs.
Audit Trail
Regular external verification of the balance sheets is required to maintain the credibility of the system. Independent auditors review the ledger entries against raw invoices and sales records to detect any discrepancies. This process prevents double counting and protects the integrity of the recycling labels used by packaging brands.