Indonesian Journal of Community Engagement Jurnal Pengabdian kepada Masyarakat Vol. 9, No. 4, December 2023, Page. 219-226 DOI: http://doi.org/10.22146/jpkm.87170 Community Service Training on Material Flow Cost Accounting (MFCA) for Micro, Small, and Medium Enterprise (MSME) Entrepreneurs Idrianita Anis*, Vinola Herawati, Amir Faizal, Yayah Sholehatul Afiyah, Vera Avrillia Master of Accounting Program, Faculty of Economic and Business, Universitas Trisakti, Jakarta, Indonesia Submitted: July 22 nd 2023; Revised: October 29 th 2023; Accepted: November 13 th 2023 Keywords: Material flow cost accounting Micro, small, and medium enterprises Resources efficiency Sustainable business practices Abstract In the last two decades, concern for environmental issues has become a regulatory concern at the international and national levels. Many methods have been developed to reduce negative impacts on business activities, including Material Flow Cost Accounting (MFCA) technology that shows an increasing trend among companies and Micro, Small, and Medium Enterprises (MSMEs) in developing countries. The benefit of MFCA technology is its superiority in identifying material losses (harmful products) during production. At the same time, this is known at the end of the process in the conventional accounting system. Then, by implementing MFCA technology, business people can take the initiative to reduce material losses and achieve resource efficiency. In addition to efforts to reduce material losses, MFCA technology will encourage business- enhancing practices by reducing costs, reducing carbon emissions, and increasing operational efficiency. This Community Service Program aims to provide training on sustainable business principles by applying MFCA technology for MSME Entrepreneurs at Bina Amanah School of Entrepreneur Cordova in South Tangerang, Banten Province, and using the problem-based learning (PBL) and research method that constructively increases participants’ knowledge after the training. 1. INTRODUCTION The National Determined Contribution (NDC) submission to the United Nations by the Government of the Republic of Indonesia emphasizes the imperative of accelerating the transition to a low-carbon economy. In response, business entities, including Micro, Small, and Medium Enterprises (MSMEs), are urged to align their operations with resource efficiency (Sulong et al., 2014). MSMEs, typically businesses with 5 to 250 employees, constitute a substantial proportion of global business entities, ranging from 85% to 99% (Ciliberti et al., 2008). This sector significantly contributes to the global GDP, accounting for at least 70% (Natarajan & Wyrick, 2011). There were 53.3 million MSMEs in Indonesia in 2020, contributing 60.3% to the country’s GDP (Azzahra & Wibawa, 2021). Despite this notable contribution, there is potential for further optimization, and MSMEs have historically served as a crucial social safety net during economic crises, such as the 1997/1998 monetary crisis and the 2008/2009 global crisis, highlighting the need to enhance their competitiveness (Lantu et al., 2016). Material Flow Cost Accounting (MFCA) is a crucial methodology within environmental management systems (EMS) (Kokubu & Tachikawa, 2013). It tracks the movement of materials throughout the production process, encompassing both positive and negative product outcomes (Herzig et al., 2012). This approach involves a detailed quantification of materials, energy, and associated costs, and its applicability is versatile, extending from specific ISSN 2460-9447 (print), ISSN 2541-5883 (online) *Corresponding author: Idrianita Anis Master of Accounting Program, Faculty of Economic and Business, Universitas Trisakti, Jl. Kyai Tapa No.1 Jakarta, Indonesia, 11450 Email: idrianita@trisakti.ac.id Copyright ©2023 Jurnal Pengabdian kepada Masyarakat (Indonesian Journal of Community Engagement) This work is distributed under a Creative Commons Attribution-ShareAlike 4.0 International License 219     www.jurnal.ugm.ac.id/jpkm Vol. 9, No. 4,