Common METRC Inventory Management Mistakes in California and How to Avoid Them
Managing inventory in California requires strict adherence to METRC regulations. Unfortunately, errors and discrepancies often arise that can lead to compliance issues, fines, and even license suspensions. Here are some common METRC inventory management mistakes and how you can avoid them.
1. Inaccurate Inventory Counts
One of the most frequent mistakes is failing to accurately track inventory counts in METRC. This can occur due to incorrect data entry, miscommunication between staff, or failure to update inventory records in real-time. For example, discrepancies may arise when products are sold or transferred without immediately updating METRC, leading to inventory shortages or overages.
2. Unreported Waste
Cannabis waste must be tracked and reported in METRC, but businesses sometimes forget to report waste accurately. This mistake can occur during cultivation, processing, or retail operations and can lead to significant discrepancies between actual and reported inventory levels.
3. Incorrect Package, Plant, or Plant Batch Tags
Incorrect or missing tags are another common mistake. Each cannabis package and plant must be assigned a unique METRC tag that tracks it through the supply chain. In addition to Packages and Plants, California requires Plant Batches to also be tagged. Errors in tagging, such as duplicate tags or incorrect tag assignments, can lead to serious compliance violations.
4. Failure to Reconcile Regularly
Businesses must regularly reconcile their physical inventory with their METRC records to ensure that they match. Often times, businesses rely on their Seed-to-Sale provider to handle this for them, but in most cases, any technical issues that result in discrepancies are often left to the license holder to resolve. Failure to do so can result in unnoticed discrepancies, leading to audits, fines, or other regulatory actions.
5. Discrepancies Between METRC and Seed-to-Sale Systems
Many cannabis businesses rely on seed-to-sale providers as the primary source of truth for their data. These systems are expected to push data to METRC automatically. However, technical issues, such as API errors, system outages, or mismatches in data formatting, can lead to discrepancies between the two systems. It's crucial to regularly compare METRC records with your seed-to-sale data, as any discrepancies must be corrected by the license holder, not the software provider.
How Weedetect Can Help Avoid Future Compliance Violations and Detect Outstanding Violations
Weedetect is a powerful tool that helps cannabis operators in California maintain accurate and compliant METRC records. It's important to note that Weedetect is not a replacement to your Seed-to-Sale provider. Rather, Weedetect is a complimentary platform that provides enhanced auditing capabilities.
1. Discrepancy Detection
Weedetect partially automates the process of identifying discrepancies between your Seed-to-Sale system and METRC. It flags discrepancies in resources such as inventory, sales transactions, plants, and more. Weedetect allows you to identify and address discrepancies before they become real compliance issues. Simply upload a CSV file of the data you wish to audit, and we take care of the rest.
2. Discrepancy Prioritization
Weedetect prioritized discrepancies it identifies based on their potential impact to your business, its compliance status, and its customers health and safety. For instance, a discrepancy in a package expiration or sell-by date is given a higher priority over an incorrect product name.
3. Clear and Actionable Audit Reports
Weedetect simplifies discrepancies it identifies with an intuitive audit dashboard and report. This enables you and your team to review, recheck, and track issue resolution from a centralized dashboard.
By integrating Weedetect into your compliance strategy, you can prevent common METRC inventory management mistakes and keep your business operating smoothly within California's strict regulatory framework. Contact us to get access.