By Stacey Hronowski, CEO of Canix

 

Table of Contents

• Introduction
• Getting Started
  • Starting Cannabis Inventory
  • Starting Non-Cannabis Inventory (NCI) Cost
    • New NCI Products
    • New NCI Lots
  • Verifying Inventory Has Been Uploaded Correctly
    • Plant Inventory at Current Time
    • Non-Cannabis Inventory at Current Time
• Adding Cost in Cultivation
  • Add NCI Inventory to Plant Batches
  • Add Labor to Plant Batches
  • How Costs Carry Over From Plant Batches to Plants
  • How Costs Carry Over From Plants to Harvests
  • How Costs Transfer from Harvests to Packages from Harvest (Manual!)
• Adding Costs through Task Management
  • Creating Tasks
  • Confirming Task COGS
• Adding NCI Lots in Canix When Physically Receiving NCI
  • Adding a New NCI Lot
  • When NCI is destroyed or wasted
    • Log Waste or NCI Adjustments
    • Edit or Delete NCI Lot
• Sales Orders
  • Create A Sales Order
  • Update the Status of the Sales Order Once It Is Sold
  • Sales Order Statuses
• Cost Reporting in Canix
  • Cannabis Inventory Value
  • 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
  • Tracking Costs from Plant Batch to Finished Good
  • The Importance of Lot ID

Introduction

Canix is a robust software, with many different features.

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

Here, we cover the basics to Get Started. This guide takes you through the end of the first Package created from a Harvest.

Beyond this, you should reference the Canix Manufacturing Module Costing Guide for further steps in the Production supply chain.

By the end of this Guide, you should be able to track your costs on your Plant Batches, Plants, and Harvests 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 and transfers 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 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:
   • Product Name
   • Shared Facilities - the facilities you want this product to be available in
   • Units - the units you want to report for this product. Note: the actual units used will be specified when logging usage in Canix and are converted by Canix from the units specified on the product and the lot when receiving inventory.
   • Allow fractional deduction - True or False if the quantity can be deducted with decimals from the product (i.e. a product, like 3.5g Jars, cannot be used as a portion of 1 unit and should be set to False)
   • SKU - this must be unique across your NCI products
   • Category - a custom product category to further categorize or differentiate NCI products
   • Location - the main location for the NCI product. Note: locations can also be set on the Lot to specify inventory in different locations for the same product
   • Unique Identifier - For updates to existing products only. Do not use if uploading new products
   • PAR - The level you want to be alerted to reorder at
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 it 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:
   • Lot Name - Specify the name for this lot to be displayed as in Canix, either the actual manufacturer's lot number, or a more general name like the date received
   • Product Unique Identifier - this is the UUID from the NCI Products table that you want the lot to be associated with.
   • Barcode / Tag - optionally specify a barcode or tag number for the lot to scan in Canix
   • Vendor - the vendor must be created in Canix's facility data > Vendors list to reference first
   • Cost - the cost per unit specified in the upload. For example, if a jar of terpenes has 100 mL in it, the units will be 100mL and the cost is the unit cost of 1 mL. (cost of the lot / quantity)
   • Quantity - the quantity of the product on hand. Note: If you receive a count based product, like a package of rolling papers, the quantity is the total number of rolling papers you have to use, not the number of packages of papers.
   • Units - the units of the product on hand. Note: Canix will convert across units as the NCI is used. For example, a fertilizer product received in Gallons, but deducted in Milliliters can have Gallons specified on the lot as units, and Milliliters specified when deducting quantities for usage in Canix.
   • Received Date - The date the inventory was received. Canix uses this to calculate FIFO as inventory is deducted
   • Lot Unique Identifier - This is for updating Lot information only. Leave blank if creating new lots.

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

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.

Plant Inventory at Current Time

Current plant batch and plant counts are found across facilities by strain, location and age of plants in the Plant Inventory Overview report. Schedule this report to get plant inventory at the beginning or end of a month automatically emailed to the appropriate teams for month-end reporting.

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.

Manually Add Costs in Cultivation

Now that we’ve defined our starting Inventory in Canix, you can begin using Cultivation. Here’s how you start.

Add NCI Inventory to Plant Batches

Let’s say you use a certain amount of fertilizer over a room of plant batches. You can then filter for the location of these plant batches or select the rows for each batch, and click “Assign Non-Cannabis Inventory”.

Afterwards, you can specify the Non-Cannabis lots used and the total quantity used. Canix will calculate the inventory costs to be applied to your plant batches based on the Unit Price of the lot selected, and the quantity specified. 

Once submitted, Costs will be divided proportionally based on the number of plants in each plant batch.

Add Labor to Plant Batches

Adding Labor is similarly simple. You select the filter for a set of Plant Batches or select the plant batch rows, and click “Assign Labor COGS”

On this screen, you can select specific employees, and add in the total hours that they worked. If you need to update their hourly rate, you can do so in the “User Management” section.
Note: Users can be restricted from seeing labor rates in Canix by using User Permission Groups.

How Costs Carry Over From Plant Batches → Plants

Upon updating plant batches to Vegetative or Flowering Plants, NCI and Labor costs from the Plant Batches will automatically transfer over to the individually tagged plants.

For example, if you start with Plant Batch A:

• Plant Batch A - 100 immatures, $50 of NCI, $100 of labor

Change growth phase for 30 Plants from Plant Batch A into Vegetative Plants. Each Vegetative Plant receives 1/100th of the NCI cost and Labor cost because there are 100 plants in the batch.

• 1 Vegetative Plant = 1 plant, $0.50 of NCI, $1 of labor
• Remaining Plant Batch A = 70 immatures, $35 of NCI, $70 of labor

As Vegetative Plants change growth phase to Flowering Plants, the current cost on the vegetative plant will move with it to the flowering phase. The cost does not change as the plant does not get split or combined with other plants at this point.

How Costs Carry Over From Plants → Harvests

When Flowering Plants Turn into Harvests, the cost from the Flowering Plants will be automatically transferred to the Harvest.

How Costs Transfer from Harvests → Package from Harvest (Manual!)

Unlike every other step in the process, transferring Costs from Harvests to Packages is a manual process. 

Costs will need to be input on the Package, in the “Per Package COGS” field, when they are being transferred from the harvest. This will populate the cost as Cannabis Cost on the package.

This is because additional harvest packages may be created at a later time, and Canix does not know at this time what percentage of the total harvest package weight this package represents to calculate the proportional COGS value. 

If costs were not applied to packages in this step, cannabis cost can be uploaded to packages following these steps.

Adding Costs Through Task Management

Creating Tasks

1. Navigate to Task Management > Tasks

2. To create a new Task select Create New

   

3. Get started by selecting an existing Task Category. Select an existing Category from the drop down menu or begin typing and select "Create New Category" to create a new category. Optionally users can select a Task Template to have these fields pre-fill when creating a new task.

4. Complete all required fields: Task Name, Location, Estimated Duration and Unit (This is an estimation of how long this task will take to complete), Estimated Start and End Dates. Optionally users can add a Task Description, or Assign a User. If this is a task that will be completed on a regular basis select, Repeat Schedule to add a recurring tasks based on the frequency. By default this will be set to Do Not Repeat.
   
   

6. Optionally users may also Associate Cannabis and Non-Cannabis Inventory, Create a Checklist or add Attachments to the Task.

   • Cannabis Inventory - This feature allows users to assign relevant Cannabis Inventory to a task. This is helpful for applying related Labor COGS. Users can select Edit Task > Cannabis Inventory and use the search box to add Plants, Packages or Harvests based on the task.

     • Note: Labor COGS will automatically apply to the Cannabis Inventory on the task, such as Plants, Packages, and Harvests, once the task has been marked as complete. The Labor COGS are calculated as the Assigned User’s hourly rate * the task duration entered when completing the task. Labor COGS are applied to Cannabis Inventory as follows:
       • Plant Batches - COGS are split proportionally across plant batches based on the number of immature plants active when completing the task
       • Plants - COGS are split evenly across the plant tags assigned to the task.
       • Harvests - COGS are split proportionally across multiple harvests based on the harvest current weight.
       • Packages - COGS are split across packages proportionally based on packaged quantity at the time the package is created.

   • When viewing Cannabis Inventory on a Task you'll automatically be alerted if the inventory in the specified Location, Lot ID, Harvest or Production Batch has changed, ensuring you always have the most up to date inventory on your tasks:

     

     • If you see the alert 'The inventory associated with these Lot ID(s) has changed. Refresh the assigned inventory to match current inventory in the selected lot ID.' simply select the 'Refresh' button to the right of this notification to refresh your inventory and ensure it's fully up to date.

   • Non-Cannabis Inventory - This feature allows users to assign relevant non-cannabis inventory to a task. Any Non-Cannabis Inventory used will be entered & deducted once the task has been completed.

   • Checklist - Create checklist items that the assigned user must confirm upon completing this task.

   • Attachments - Upload any relevant documents to the Task Template

     

     

7. Once all data has been entered correctly, select Create Task in the top right of the modal.

Confirming Task COGS

Once a task has been marked as Complete, a final step will be provided to confirm the labor hours and non-cannabis inventory assigned to the task, with all of the costs and the inventory they will be associated to displayed:

Selecting “Apply” will deduct all non-cannabis inventory and apply the costs to the cannabis inventory.

Selecting “Do Not Apply” will not apply the costs or deduct the non-cannabis inventory.

• When wouldn’t I want to apply and deduct inventory?
  • Ex. a task to pick non-cannabis inventory that is required for a production run. Do not apply since the non-cannabis inventory is going to be deducted during the production run.
• How are costs assigned to inventory?
  • Packages: costs are distributed proportionally based on the weight or volume.

    • For example:

        - Total Labor: $100
        - Package A: 80 grams (will receive $80 in labor costs)
        - Package B: 20 grams (will receive $20 in labor costs
      

  • Plants: costs are distributed equally across each plant.

  • Plant Batches: costs are distributed proportionally based on the # of immature plants.

      - Total NCI Costs: $100
      - Plant Batch A: 55 immatures (will receive $55 in non-cannabis costs)
      - Plant Bach B: 45 immatures (will receive $45 in non-cannabis costs)
    

  • Harvests: costs are distributed equally across each harvest selected.

Adding Lots in Canix When Physically Receiving NCI

It is very important to keep NCI inventory quantities up to date! When receiving new inventory in your facility, be sure to update this in Canix at the same time.

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 NCI product increased, and 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 Log New Usage to record ad hoc usage of the NCI lot that is not applied to plant, harvest or package inventory.

Log Waste or NCI Adjustments

From the NCI product page, or from the Non-Cannabis Inventory > Lots table, select Log New Usage. The quantity specified will be deducted from the lot and displayed in the NCI Usage Report.

Edit or Delete NCI Lot

If a mistake was made, or to quickly edit a lot's details, select the edit icon next to the Lot when viewing an NCI Product. To delete a lot, select the red X next to the Lot.

Sales Orders

When packages are allocated to 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 displayed. 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.

   • Select Add Notes to add any additional details to the line item to optionally be displayed on the invoice

   • Select Add Discount to add any line item discounts. These will apply towards the Subtotal of the order, and does not get summed again in the total order discount field.

4. Add the Delivery Date, Payment Due Date, Custom Payment Terms and Additional Payment Notes if necessary.

   

5. Click on Discounts at the bottom of the Sales Order to add discounts to the total order. 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.

Sales Order Statuses

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

  Note: When Packages are placed on the Sales Order, the package status will be updated to “Allocated”, and will no longer be available to sell.
  
  

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

  Note: This status will automatically update when a Transfer is created from the sales order, regardless of the departure time.
  
  

• Accepted: Contents were accepted by customer/recipient

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

Cost Reporting in Canix

Cannabis Inventory Value

This reports shows the current inventory for all Cannabis Inventory. It's recommended to schedule this report to your email at the end of every month for month-end reporting.

Cannabis Non-Cannabis Inventory Value

This report shows the current inventory for all Non-Cannabis Inventory. It's recommended to schedule this report to your email at the end of every month for month-end reporting.

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

View all inventory that was used over a period of time with the Non-Cannabis Usage Over Time report. This will log non-cannabis applied to plants, harvests and packages, as well as NCI deducted ad hoc using the Log New Usage action.

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

As cannabis packages are split or combined, the affected quantities and package details are found in the Package Splits & Combines Over Time report.

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 single 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 the “Lot ID” field.

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 Plant Batches below