This document describes using blockchain and distributed ledgers for the palm oil supply chain. It outlines the key participants in the supply chain including palm estates, mills, transporters, and buyers. It then describes the transactions and accounting entries for fresh fruit bunches, crude palm oil, and palm kernel at each stage. Finally, it proposes automating the process using Internet of Things devices like weigh bridges to create real-time distributed ledgers for all participants and transactions.

1. Blockchain
Distributed Ledger
For Palm Oil Business

2. Palm Oil Business

3. Supply Chain – Palm Oil Business
• Palm Estate
• Produce Fresh Fruit Bunch (FFB)
• Send FFB <24 hours to Palm Oil Mill using Transport Vehicle
• Palm Oil Mill
• Receive FFB from Palm Estate
• Produce Crude Palm Oil (CPO) and Palm Kernel (PK)
• Transporter
• Bring FFB from Palm Estate to Palm Oil Mill
• Send CPO to Buyer using Tanker
• Send PK to Buyer using Truck
• Buyer
• Receive CPO and PK from Palm Oil Mill

4. Purchase and Sales Contract
• FFB Sales/Purchase Contract
• Seller : Palm Estate
• Buyer : Palm Oil Mill
• CPO Sales/Purchase Contract
• Seller : Palm Oil Mill
• Buyer : CPO End User
• PK Sales/Purchase Contract
• Seller : Palm Oil Mill
• Buyer : PK End User
• Transportation Contract
• Seller : Transportation Company
• Buyer : Palm Estate and Palm Oil Mill

5. FFB Transaction/Ledger
• Palm Estate (Sales Contract Value)
• Debit : Account Receivable from Palm Oil Mill
• Credit : FFB Sales
• Palm Estate (Transportation Contract Value)
• Debit : Transportation Cost
• Credit : Account Payable to Transporter
• Palm Oil Mill (Sales Contract Value)
• Debit : FFB Receipt/Inventory
• Credit : Account Payable to Palm Estate
• Transporter (Transportation Contract Value)
• Debit : Account Receivable from Palm Estate
• Credit : Revenue from FFB Transportation

6. CPO/PK Transaction/Ledger
• Palm Oil Mill (Sales Contract Value)
• Debit : Account Receivable from End User
• Credit : CPO/PK Sales
• Palm Oil Mill (Transportation Contract Value)
• Debit : Transportation Cost
• Credit : Account Payable to Transporter
• CPO/PK End User (Sales Contract Value)
• Debit : CPO/PK Receipt/Inventory
• Credit : Account Payable to Palm Oil Mill
• Transporter (Transportation Contract Value)
• Debit : Account Receivable from Palm Oil Mill
• Credit : Revenue from CPO/PK Transportation

7. Transaction Value
• Fresh Fruit Bunch (FFB)
• Sales : FFB Quantity * FFB Unit Price
• Transportation : FFB Quantity * FFB Transport Unit Price
• Crude Palm Oil (CPO)
• Sales : CPO Quantity * CPO Unit Price
• Transportation : CPO Quantity * CPO Transport Unit Price
• Palm Kernel (PK)
• Sales : PK Quantity * PK Unit Price
• Transportation : PK Quantity * PK Transport Unit Price
• Penalties/Deduction
• FFB, CPO and PK Quantity subject to penalties/deduction after
Quality Control Inspection

8. Distributed Ledger Automation
• Fresh Fruit Bunch (FFB)
• Truck with FFB -> WeighBridge (In) -> Quality Control -> Unloading ->
WeightBridge (Out)
• Approved by Palm Estate, Palm Oil Mill and Transporter -> Create Ledger on
each party
• Crude Palm Oil (CPO)
• Empty Tanker -> WeighBridge (In) -> Loading -> Quality Control -> WeighBridge (Out)
• Approved by Palm Oil Mill, CPO End User and Transporter -> Create Ledger on each party
• Palm Kernel (PK)
• Empty Truck -> WeightBridge (In) -> Loading -> Quality Control -> WeighBridge (Out)
• Approved by Palm Oil Mill, PK End User and Transporter -> Create Ledger on each party
• WeighBridge Automation (IOT)
• WeighBridge Indicator can be connected directly to Computer and Internet to monitor
FFB, CPO and PK realtime online

9. Distributed Ledger Automation
• Fresh Fruit Bunch (FFB)
• Truck with FFB -> WeighBridge (In) -> Quality Control -> Unloading ->
WeightBridge (Out)
• Approved by Palm Estate, Palm Oil Mill and Transporter -> Create Ledger on
each party
• Crude Palm Oil (CPO)
• Empty Tanker -> WeighBridge (In) -> Loading -> Quality Control -> WeighBridge (Out)
• Approved by Palm Oil Mill, CPO End User and Transporter -> Create Ledger on each party
• Palm Kernel (PK)
• Empty Truck -> WeightBridge (In) -> Loading -> Quality Control -> WeighBridge (Out)
• Approved by Palm Oil Mill, PK End User and Transporter -> Create Ledger on each party
• WeighBridge Automation (IOT)
• WeighBridge Indicator can be connected directly to Computer and Internet to monitor
FFB, CPO and PK realtime online