Ongoing Goods Accounting

Hi Jordan, The calculations for this credit have changed to be more stringent than the v2009 Reference Guide. Now, only a portion of the the product cost can contribute toward compliance, based on the percentage of compliant materials within the product. In order to confirm that 60% of the cost of ongoing consumables are compliant follow the steps below. 1. Calculate the $ value of each item that contributes towards compliance with the sustainability criteria. Referencing your example above, if a notebook costs $5 and has 50% recycled content then $2.50 of the total cost would contribute toward compliance. 2. For ALL ongoing consumables purchased, follow step 1. If the product is compliant with more than one sustainability criteria, follow step 1 and add all the values that contribute toward compliance together to determine the total $ value of compliance. 3. Calculate the total $ value of all compliant ongoing consumables. For example, if the project purchased three $5.00 notebooks with 50% recycled content, and two $2.00 paper towel rolls with 75% recycled content, the total $ value of compliant materials would be ($2.50+$2.50+$2.50+$1.50+$1.50)= $10.50 4. Determine the percentage of compliant ongoing consumables using the following equation (found in the Reference Guide under Step-By-Step Guidance) % Compliant Purchases = (Total cost of compliant ongoing purchases/Total cost of all ongoing purchases) * 100 For example, using the information from Step 3 ($10.50/$19.00) * 100 = 55% Therefore, the purchases for this project would not be compliant. Note, that if products are sourced, manufactured, and sold within a 100 mile radius, then 200% of the cost of that item contributes towards compliance. I hope this is helpful! Kim