Service
Seed-to-Sale Reconciliation
The statewide monitoring system is a compliance record and an inventory record at the same time. When it diverges from the accounting records, both financial reporting and license reporting are exposed. Reconciliation closes that gap on a schedule.
What Gets Reconciled
Package quantities, transfers, adjustments, waste events, and sales are compared against the inventory subledger and the general ledger. Differences are categorized by cause so the process improves rather than repeating.
- Package-level quantity comparison
- Transfer manifests matched to receipts and shipments
- Adjustment and waste events traced to authorization
- Sales volume reconciled to point-of-sale and revenue
Common Sources of Variance
Most variances trace to timing, untagged repackaging, unrecorded samples, or manual adjustments made without a corresponding ledger entry. Root-cause categorization is what stops the same variance recurring monthly.
Cadence and Documentation
Retail environments generally reconcile daily and count on a cycle; cultivation and processing sites reconcile at defined production milestones. Each reconciliation is retained with its supporting schedule.
Michigan Reporting Considerations
Michigan licensees report inventory activity in the statewide monitoring system administered under the Cannabis Regulatory Agency's rules. Keeping financial records aligned with what has been reported supports both routine inspection and internal review.
Frequently Asked Questions
- How large a variance is acceptable?
- Set a documented tolerance appropriate to the license type and product form, and investigate anything beyond it. The threshold matters less than applying it consistently.
- Who should perform reconciliation?
- Someone independent of inventory adjustments. Separating the reconciler from the person who can change quantities is a basic control.
- Can historical variances be cleaned up?
- Often, through a structured review of adjustment history. The realistic goal is an explainable position going forward with documented corrections.
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Read moreDiscuss Your Operation With a Cannabis Accounting Specialist
Call to talk through your license types, current records, and reporting needs, or schedule a consultation at a time that works for your team.