Tracking the Cost of Goods Sold is vital in understanding your business’s margins and profitability. The following sections discuss the different types of COGS Canix can track, and how they are calculated.
Cannabis COGS are the costs related to the cannabis sources of the finished good. These could be clones from an incoming transfer that should be included in the cost of the bulk flower or trim from your harvest, or it could be related to source intake material for your manufacturing processes.
There are 2 ways Cannabis COGS can be added:
- Any prices on wholesale incoming transfers through Metrc will populate the COGS field on packages. When clicking on a package tag in any of the Inventory > Package reports, you can see this in the Cost of Goods Sold field.
- You can manually add the Cost of Goods Sold amount when clicking on a package tag in any reports under Inventory > Packages and entering the cost in this field.
COGS are applied proportionally to child packages as parent packages are split or combined.
Non-Cannabis COGS are costs related to the non-cannabis ingredients that go into producing your finished goods. This could be tracking ingredients used in the cultivation process like nutrients and planting supplies, or track ingredients related to processing or sales, like Sugar, Jars and Bags for packaging.
To deduct Non-Cannabis inventory automatically as packages are created and track the COGS related to these ingredients, set up a Bill of Materials. You can follow these steps to create Bill of Materials (BOM).
When does inventory get deducted?
Ingredients are deducted as new packages are created from harvests, or a source package is split to convert from the source package’s item to a new item, Non-Cannabis BOMs will deduct ingredients proportionally based on the packaged quantity.
To deduct Non-Cannabis inventory manually,
- Navigate to Inventory > Non-Cannabis > Inventory
- Select a product name from the inventory table
- Under Active Lots, click the pencil icon (upper right)
- Update the Quantity