Metrc Michigan Reconciliation & Inventory Accounting Guide

CRA Compliance and Michigan Metrc Records

The Cannabis Regulatory Agency (CRA) oversees Michigan marijuana licensees and their required inventory reporting. Plant tags, package identifiers, transfers, adjustments, waste events and sales form a quantity record from propagation to final sale. Retain exports by facility, license and cutoff alongside count sheets and manifests. Accounting reconciliation supports this compliance record but does not replace timely operational reporting or assure CRA approval.

Package-to-Subledger Tracking and General Ledger Tie-Out

Use a common cutoff to match every Metrc package tag to a product, SKU, location and unit of measure in the inventory subledger. Retain vendor invoices or production cost support separately from quantities. Match manifests to receipts and shipments, explain split or repackaged lots, and test unit conversions before comparing physical counts. Value the reconciled quantity subledger using the established costing method, then reconcile its dollar total to general ledger inventory and the COGS rollforward. Missing tags and unposted receipts belong on an exception list rather than being absorbed into a balancing entry.

• Quantity comparison at package level
• Manifest-to-receipt matching
• Adjustment authorization trail

Inventory Variance Adjustments and Approval Controls

Investigate timing, package mapping, unit conversions, receiving errors, repackaging, documented waste and count differences before adjusting inventory. Preserve the original export and record each exception's package tag, quantity difference, cause, evidence, approver and resolution. Authorized staff make operational corrections under current CRA and Metrc requirements; the accounting reviewer determines whether a corresponding cost adjustment is needed. Link that journal entry to the approved variance record. A cutoff difference may need no cost adjustment, and a missing invoice is not automatically shrink. Never post a plug merely to force totals to agree.

Cannabis Inventory Reconciliation Cadence and Records

Review retail sales and operational exceptions daily and production movements at defined milestones. Complete cannabis inventory reconciliation alongside the monthly financial close, using physical counts or documented cycle-count controls suited to the operation. Retain signed counts, Metrc exports, manifest matches, package mapping, the valued subledger, general ledger tie-out and approved inventory variance adjustments. Inventory reconciliation services should define who prepares, reviews and resolves each exception; permissions and operational corrections remain the licensee's responsibility.