By Stacey Hronowski, CEO of Canix

 

Table of Contents

• Getting Started
  • Starting Cannabis Inventory - Quantities
  • Upload Starting Costs for Cannabis Inventory
  • Upload Starting Costs for Non-Cannabis Inventory (NCI)
    • Import New Non-Cannabis Products
    • Import New Non-Cannabis Lots
  • Creating Bills of Materials (BOMs)
  • Verifying Inventory Has Been Uploaded Correctly
• Keeping Inventory Updated
• Create Products and Track Yield with the Manufacturing Module
  • Setting Up the Manufacturing Module
  • Using the Manufacturing Module
• Adding Lots in Canix When Physically Receiving NCI
  • Adding a New NCI Lot
  • When NCI is destroyed or wasted
• Sales Orders
  • Create A Sales Order
  • Update the Status of the Sales Order Once It Is Sold
• Cost Reporting in Canix
• Importance of tracking Lot ID

 

Introduction

Canix is a robust software, with many different features.

To help our Manufacturing customers get started with our software, we created this Guide to Getting Started with Manufacturing.

Here, we cover the basics to Get Started. By the end of this Guide, you should have the basics on how to obtain Profit Per SKU in Canix.

Getting Started

Starting Cannabis Inventory - Quantities

This is easy. When you set up Canix, we automatically connect to Metrc and import all of your historical cannabis inventory over the past 3 years.

This will be accomplished in the set up of your account.

• We refresh your packages every 10 minutes
• We refresh your plant batches, plants, harvests, items, strains, and locations every 24 hours

If you need your inventory updated immediately, press “Refresh Metrc Data” and we sync all of your data immediately.

Upload Starting Costs for Cannabis Inventory

When Canix syncs data from Metrc, we will obtain up to date cannabis inventory quantities, but not up to date cannabis inventory costs.

1. Go to the “Facility Data Uploader”, and select “Cannabis COGS”
2. Follow the instructions on the template to upload your COGS”

Once Complete, you will see Cannabis Costs on the “Packages” screen populate under the “Current Cannabis Costs” Header (see below).

Upload Starting Costs for Non-Cannabis Inventory (NCI)

First, you will need to define the SKUs for your NCI, or NCI Products. This is all of the items that you will use in operating your facility.

In Canix, we define the “Standard Cost” of the Product, and also track the Exact Cost of each lot.

In this first step, you will define the Non-Cannabis Products, and their Standard Costs (if applicable)

Import New Non-Cannabis Products

1. Navigate to Admin > Facility Data Uploader and select “Non-Cannabis Products” in the top left hand dropdown. Then select “Download Template”:

1. Fill in this template with your inventory. The fields are:
   1. Name, shared facilities, units, Allow fractional deduction, SKU, Category, Location, Unique Identifier, PAR
2. Once Uploaded, you will see your NCI Products updated below. Keep in mind, there will be no Quantity or Cost yet.

Import New Non-Cannabis Lots

The next step to add quantities to your NCI Products. You will do that through the upload of NCI lots. On these lots, you will add the date received, as well as the cost of that specific lot.

We do this so that if you have, for example, a box of pens that you expect to be $1.00, but due to inflation increases to $1.25, you will be able to track the expected cost vs. the Actual cost.

1. Navigate to Admin > Facility Data Uploader and select “Non-Cannabis Lots” in the top left hand dropdown. Then select “Download Template”:

1. Fill in the download template with the following fields:
   1. Lot Name, Product Unique Identifier, Barcode / Tag, Vendor, Cost, Quantity, Units, Received Date, Lot Unique Identifier

After uploading your Non-Cannabis Lots you will see your NCI page populated with Active Quantities and Lots here:

Creating Bills of Materials (BOMs)

Think of a Bill of Material like a Recipe for a Product. It states all of the Non-Cannabis and Cannabis Items that will be consumed when you create a Cannabis Output Item.

1. Navigate to Inventory > Non-Cannabis > Bill of Materials
2. Select +Create Bill of Materials

1. Fill in the requisite fields.

Afterwards, you’ll see your first Bill of Material populate.

Duplicating Bills of Materials

Canix currently has no bulk import for Bills of Materials, so we recommend that you Duplicate your Bill of Materials to make the import easier.

Contact help@canix.com if you’d like assistance in creating your Bills of Materials.

Verifying Inventory Has Been Uploaded Correctly

Congratulations! If you’ve followed the steps above, you should now have your physical and Canix inventory matching across:

• Bills of Materials
• Cannabis Items
• Non-Cannabis Items

We recommend doing a physical vs. digital audit at this point, and verifying everything has been uploaded correctly.

You can easily see how much Inventory you have in Canix here.

Cannabis Inventory at Current Time

This report shows the current quantity and valuation of your Cannabis inventory, broken out into various cuts (by Item Name, Item Type, Brand, etc.) so you can easily validate the how much inventory you have on hand.

Non-Cannabis Inventory at Current Time

This report shows the current quantity and valuation of your Non-Cannabis Inventory, broken out into different SKUs, so you can easily see what’s on hand.

Keeping Inventory Updated

There are 3 major things to remember to keep costs and quantities accurate in Canix:

1. Do all compliance actions in Canix, not Metrc or BioTrack. Canix can ONLY track costs if the action is done in Canix. If you take a compliance action, Canix will sync the updated package quantity, but not the costs.
2. Add Lots when you receive NCI. Ensure that you are importing Lots when new NCI arrives at your facility. Otherwise, NCI will become out of date immediately
3. Ensure your BOMs are up to date in Canix. Each time you produce a new SKU, or anything with a new Cannabis Item, it is critical to remember to add the BOM to Canix. Canix will automatically deduct the costs and quantities associated with that BOM, but it will be unable to do so if the BOM is not defined

Create Products and Track Yield with the Manufacturing Module

Now that we’ve defined our starting Inventory in Canix, you can begin using the Manufacturing Module.

For our manufacturing module, we recommend that you create a different Run for each step in your Manufacturing Batch that you want to track. If you don’t care about tracking granular yield, you can create one run for the entire Batch.

Different operators and states have different preferences and regulations on what they track for each step in the product creation process.

At a minimum, you will need to follow these steps when you transform your initial cannabis inventory (i.e., Distillate) into a final Product (vape cartridge).

Setting Up the Manufacturing Module

Create Run Types

The purpose of this step is to define the types of runs that you will be conducting. Common types are Grinding, Extraction, Packaging, Processing, Labeling, Filling, etc.

You should define the run type according to your own processes.

1. Navigate to Manufacturing > Batches
2. Select the Run Types tab (gray text tab at the top of your screen)
3. Select Create Run Type and enter the name of your first category (i.e. Storage, Preparation, or Processing)
4. Select Create and note the page may need to be refreshed to view all created run types
5. Continue this process for all categories in your manufacturing process

Create Batch Templates

The purpose of this step is to define the runs for processes that you may run repeatedly, so you don’t need to do this every time you create a Batch.

1. Navigate to Manufacturing > Batches and select the Batch Templates tab (gray text at the top of your screen)
2. Select Actions > Create Template and enter the template name
   • i.e. 1g Vape Cartridges, 10mg Cookies, 1g Prerolls
3. Select Create to begin adding steps to the template
4. Select + Add Run to enter the Run Name and select a Run Category that aligns with that step
   • Enter a Canix location for where this process takes place to direct employees to the right area for processing (optional)
   • Enter a baseline for the hours in each step of the process, this can be edited when creating a batch (optional). Note: This does not affect labor hours or labor COGS and that is entered separately on the run.
   • Select Add Estimated Output to select an item name that will be produced in this step. This item will reduce which BOMs are available to select when starting a run.
   • Add any notes for employees or about this step in the process to be displayed in each batch created from this template (optional)
5. To continue adding steps, select Add Run
   • To remove a step in the template, select the red X to the right of each run
6. Click Save when the template is complete
   • This can be edited after it's created

Note: Additional runs can be added on an individual batch by batch basis, if a step needs to be rerun or a process is altered slightly for 1 batch.

 

Using the Manufacturing Module

Creating A New Batch

This is the first step of utilizing the Manufacturing Module. A Batch is defined as a process of material creation.

 

Batches can be created ad hoc or pre-populated from a template. To create a batch without a template:

1. Navigate to Manufacturing > Batches
2. Select Actions > Create Batch
3. Enter a batch name and optionally you can select a Batch Template - See Create a Batch With a Template
   • It’s recommended to have a good naming convention for better filtering and searching in reporting (i.e. Choc Cookies 10mg - 03.24.21 or Green Farms - CC 10mg - 03.24.21) to track the source
4. Select Create Batch

Adding a Run

1. Select Add Run on the next screen to add your first step in the process
   • Enter a Run Name, to select a Run Type users can begin typing to search and select the Run Type or Create a New Type if needed by selecting Create New Type
   • Users can associate a Bill of Materials to each Run by searching and selecting a Bill of Materials from the drop down.Note: Selecting a Bill of Materials will pre-fill selected cannabis & non-cannabis inventory to the run. You can add, edit, or remove any inventory from the run once it has been created.
   • After selecting a Bill of Materials, a Bill Of Materials Summary will populate below. Users can select source and output items to pre-fill run details
   • Enter an Estimated Output Quantity - the estimated quantity to initially populate non-cannabis quantities.
   • De-Select Target output quantity is the same as the estimated quantity - if the target is different. Note: Target Output Quantity is only used for reporting purposes and does not have an impact on input quantities.
   • Optionally, use the Notes & Attachments tab to add attachments, log equipment usage and value monitoring, as well as any custom observations. For more info, see the Notes & Attachments Tab section below.
2. Select Add and continue to add runs for as many or few steps for reporting

If a step needs to be moved, or another run added to the middle of a process, select Reorder Runs to place the steps in the correct order.

Add Inputs and Outputs

After Creating the Run, add specific cannabis inputs, outputs, and non-cannabis material according to the ingredients that you are utilizing

Submit the Run

Nothing in the Manufacturing Batch will be submitted to Metrc until you hit “Submit”.

At the point of submission:

• Output packages will be created in Metrc
• NCI will be deducted (if applicable)
• Waste will be created (if applicable)

The run will not be able to be edited after it is submitted

Adding Lots in Canix When Physically Receiving NCI

When you physically receive new non-cannabis inventory, you should add this to Canix by “Adding a New NCI Lot”

Adding a New NCI Lot

In Canix, on your product details page, you have an Active Lots section which allows you to keep track of and add inventory quantities to your NCI products.

To add a new NCI lot:

1. Navigate to Inventory > Non-Cannabis > Inventory

2. Select the product that you would like to add a new lot to

3. Scroll down to the Active Lots section and select + New Lot

   

4. Fill out all of the required fields: Lot, Product Barcode / Tag (optional), Vendor, Unit Cost, Quantity, Units, and Received Date.

   

5. Select Create.

Once you've completed the steps above, you will notice the quantity for the product increase & you will be now able to view, and manage the new lot in your Active Lots section.

When NCI is destroyed or wasted

Let’s say you have a box of gelatin which is not stored properly and needs to be wasted.

When this occurs, you should edit or delete the NCI lot so that the quantity is updated accurately.

Edit or Delete NCI Lot

Sales Orders

When packages are put onto sales orders, this assigns the price that they are sold at.

This is what Canix utilizes to calculate Revenue in Profit per Gram.

Create A Sales Order

1. Navigate to Sales > Sales Orders > Actions > Create Order.

   

2. Begin typing in the Customer search bar in the Order Details section to find an existing customer, or create a new customer. You can also create new customers by going to Sales > Customers to use here in the future.

3. Use the Product Search at the top of the Order to search for products to add the the Sales Order.Note: the Sales Order search results will be based on the configuration selected in Facility Management. By default All active items & only inactive items with active packages will be selected. Meaning that Canix will show active items, even if no associated packages and shows inactive items with active packages.

   Once added, you can edit pricing, quantity, and units. The quantity available is displayed below the item. Add Notes to add any additional details.

4. Add the Delivery Date, Payment Due Date, Custom Payment Terms and Additional Payment Notes if necessary. (Note: These Payment Terms will also reflect on the downloadable Invoice.)

   
   

5. Click on Discounts at the bottom of the Sales Order to add discounts. The reason for adding a discount is required but is not displayed on the order itself. You can enter N/A if there is no discount reason in order to add it.

6. Click on Taxes to edit the tax rate.

7. Click Create to save the Sales Order.

   Once created, you can click on the Sales Order number to print invoices, record payment and create transfer manifests.

Update the Status of the Sales Order Once It Is Sold

After creating a sales order, you should update the status as the Sales Order moves through different stages. These statuses are for the sales order only. 

Sales Order Statuses

• Requested: Order has been placed by a customer in your shop

• Created: Order Created, not yet approved by a supervisor

• Approved: Approved by a supervisor to be executed for filling/shipment

• Filled: Packages have been allocated for all order items

• Shipped: Transfer has been created, all Items have been shipped to the customer

  💡The Shipped status will automatically update based on the departure time listed on the Transfer.

• Accepted: Contents were accepted by customer/recipient

• Archived: Inventory accepted, all payments have been made. Order no longer requires attention

Packages allocated to a sales order will automatically receive an Allocated package status when on an order with a status of Created, Approved or Filled. Once a sales order status changes to Shipped, Accepted or Archived, the packages will no longer have an Allocated status. They will return to Available to Sell, unless they were properly transferred out of your facility on an outgoing transfer.

Cost Reporting in Canix

Cannabis Inventory Value

This reports shows the Point in Time inventory for all Cannabis Inventory

Cannabis Non-Cannabis Inventory Value

• How Much Non-Cannabis Inventory was Used (And the Associated Cost)

How Much Cannabis Inventory was Used (And the Associated Cost)

Sold Packages Report

The cost of an entire batch

• What do I mean by batch? By this, I mean the entire lineage of a finished good, from Plant Batch, to Plants, to Harvests, to Packages.
• Currently, we do not have a report that shows you this. We are working on a report that will show the cost of the “Lot ID”, broken down into steps.

Tracking Costs from Plant Batch to Finished Good

The Importance of Lot ID

Many operators want to track their costs from Plant Batch, to Plants, to Harvests, to Packages.

In Canix, you do this utilizing “Lot ID”.

Depending on what kind of operator you are, you will be able to define Lot ID at whatever part you begin in the process.

Canix will automatically carry Lot ID through to the end.

For example, you can assign a Lot ID to group Plant Batches below