*The categorization of your financial data consists in applying a monetary issue factor to your expenses.Once your have imported your expenses from the Expense* Collection & Categorization tab, you can categorize them from the Collection & categorization** tabs to begin the monetary analysis of your emissions.
Categorization is a key element to ensure the most accurate estimation of your emissions. Make sure to select the correct category before validating each transaction. You must reach a minimum confidence score of 80% for this module to be considered complete. To enhance the accuracy of your report, we encourage you to aim for 100%.
It is important to note that this approach to greenhouse gas emissions calculation has limitations, particularly in terms of accuracy, as it does not take into account the specific characteristics of purchased products or services. For more precise calculations, we recommend combining it with the physical analysis available in our activity modules.
1. Categorization
When completing the List of Expenses template, we recommend filling in the “Category” column using the Greenly categories provided in the reference document. This acts as an almost pre-categorization step, helping the platform more accurately recognize and match your entries when you upload the file, making the process faster and reducing the amount of categorization work required afterward.
Please note that this process is not 100% fixed or automated, so a review and validation step by the client will still be necessary once the data has been uploaded. However, using these categories is the easiest and most effective way to streamline and simplify the overall categorization process.
Once your data is uploaded, you will gain access to the categorization.
By default, the expenses table displays either all expenses or only non-validated expenses (those for which the category has not yet been confirmed by the AI and require your review and validation).
To make the categorization process more efficient, you can use the view filter located on the right side of the table.
Three view options are available:
Ungrouped
Group by “Description”
Group by “Accounting label”
You can then proceed using the three available categorization options.
Confirm the currently suggested category (first suggestion).
Select one of the two other suggested categories.
Click on the category dropdown list and navigate through the emissions category menu to explore all available categories – also accessible via this link.
Once the category is selected, you can click on "Validate", and the next expense group will be displayed.
2. Overview##2.1. Overview of emissions
In the same view, “2. Collection and categorization”, you have an overview of your emissions per Greenly Category. You can also select a category to zoom in. You’ll find the list of your transactions below the graph.
2.2 Validate, recategorize & avoid double accounting In the“Amount” column, use the arrow above the transaction list to sort transactions so that the most important ones appear at the top for validation. This can help improve your confidence score.
To act on one or multiple expenses at once, you need to select them, then click on “Edit” to choose the following options:
Option 1: If the emission factor associated by the algorithm is incorrect, you can Recategorize and validate X transactions to assign the chosen category to the selected transaction
Option 2: For each transaction in the list, if the selected category is correct, click on the "Validate"button to confirm the category.
Option 3: To avoid double counting, expenses corresponding to activities that have been included on a different module in the platform must be marked as "Activity Data Duplicate" by clicking on “Flag as duplicate”.
Tip: You can use the search bar to quickly find a group of transactions by a supplier name or keyword. You can select all the found transactions with the "Select all"button, and validate the transactions in one click.If you have any doubt regarding a transaction, you can leave a comment, and your dedicated project manager will review it.
This section only appears by selecting one expense at a time.
Important: Greenly uses the exchange rate corresponding to the profile year (until 2023)
Use Case 1: If a transaction is in a currency other than EUR (e.g., USD) and no matching Market Emission Factor (MEF) exists for that currency (like Exiobase), the French MEF for the Purchase Category is converted to the transaction currency. The exchange rate used corresponds to the profile year (e.g., 2023, USD -> EUR).
Use Case 2: In the categorization module, there may be transactions in different currencies. The “total amount” displayed at the top right is calculated using exchange rates that align with the profile year.