Data lineage is the record of where a figure came from and what happened to it on the way: which source records, which joins, which conversions and which adjustments. IBM defines it as "the process of tracking the flow of data over time, providing a clear understanding of where the data originated, how it has changed, and its ultimate destination within the data pipeline". It adds that lineage "provides an audit trail for data at a very granular level".
Why it matters beyond engineering
Engineers use lineage to trace errors. Vendors pitch it to everyone else as a basis for trust. Qlik, which sells data tools, says it can "Increase trust and reliance on data across your organization".
Lineage has a limit, though. It shows where a figure came from, not whether it is right. A figure can trace perfectly back to wrong source records. So lineage works alongside reconciliation to something already trusted, such as the ledger or the bank.
In a timber business
A cost figure may start on scale tickets and pass through unit conversions, contract prices and settlement adjustments before it reaches a report. Each step can change the number, and each is a place to check it.
Lineage can also carry what kind of figure it is. From Quarri's own work with a lumber and millwork manufacturer: a like-for-like procurement comparison found $130k+ of bankable savings, with a further $110k+ that needed quotes to confirm. The two were kept separate. A single total would have hidden that difference.
What it isn't
Lineage isn't a data catalogue. IBM draws the line: "While data lineage tools show the evolution of data over time via metadata, a data catalog uses the same information to create a searchable inventory of all data assets in an organization." Good lineage is captured as the data moves. Lineage written by hand after the fact goes stale when the process changes.
What to check
Pick one figure from last month's report and ask to see where it came from, down to the source records. Ask whether any part of it is an estimate, and whether the report says so.
Quarri for finance and strategy teams is built for the people who close the month, explain the margin and answer the board.
For more depth: What is data lineage?
Sources
Quarri is an AI-native data platform for the timber supply chain. It connects buying, production, sales and inventory for forest management, sawmill, wood products and pulp, paper and packaging operators.