Cannabis Inventory Tracking & Reconciliation SOP

Document No.: [SOP-INV-001] | Effective Date: [DATE] | Version: [1.0] | Approved By: [NAME, TITLE]

1. Purpose
This Standard Operating Procedure establishes how [COMPANY NAME] tracks, counts, and reconciles all cannabis inventory at [FACILITY NAME/ADDRESS]. Its goals are to keep the state seed-to-sale system accurate at all times, detect loss, theft, diversion, or data-entry error quickly, and satisfy the inventory and reporting requirements of [STATE REGULATORY AGENCY].

2. Scope
This SOP applies to all cannabis and cannabis products on the licensed premises, including live plants, harvested material, work-in-process, finished packaged goods, samples, and cannabis waste awaiting disposal. It applies to every employee who receives, moves, counts, sells, converts, or destroys inventory. Non-cannabis supplies (packaging, equipment, retail merchandise) are covered under [SEPARATE SOP NUMBER].

3. Responsibilities
• Inventory Manager ([NAME/TITLE]): Owns daily counts, seed-to-sale data accuracy, and daily reconciliation; first reviewer of all variances.
• Compliance Officer ([NAME/TITLE]): Investigates escalated discrepancies, files notifications with [STATE REGULATORY AGENCY], and maintains this SOP.
• Inventory/Retail Staff: Perform assigned counts, enter transactions the day they occur, and report anomalies immediately.
• General Manager ([NAME/TITLE]): Ensures adequate staffing for two-person controls and provides final signoff on periodic audits.

4. Procedure
• 4.1 Daily physical counts. At [TIME, e.g., 8:00 AM], before sales or production activity begins, two employees together count all sellable inventory by category — flower by weight on calibrated scales, pre-rolls and packaged goods by unit — using the daily count sheet [FORM NO.]. No employee may verify a count of transactions they alone entered the prior day.
• 4.2 Seed-to-sale system entries. Every inventory event — receipt, internal transfer, sale, conversion, sample, or waste — is recorded in [SEED-TO-SALE SYSTEM, e.g., Metrc or BioTrack] on the day it occurs and no later than [X HOURS / END OF BUSINESS DAY], or sooner where [STATE] rules demand. Physical package tags must match system IDs at all times; untagged product must never be moved, sold, or destroyed.
• 4.3 Daily reconciliation. The Inventory Manager compares (a) the physical count, (b) the seed-to-sale system balance, and (c) point-of-sale records, then signs and dates the reconciliation log [FORM NO.].
• 4.4 Variance thresholds. A variance within ±[X]% or [Y] grams per category is recounted, documented, and monitored for patterns. Any variance above that threshold, any variance involving the vault, or any shortfall repeating on consecutive days triggers escalation under 4.5.
• 4.5 Discrepancy escalation. Step 1: immediate recount by a different two-person team. Step 2: if unresolved, notify the Compliance Officer within [X] hours. Step 3: investigation within [X] business days, including camera footage review, transport manifests, transaction logs, and staff interviews. Step 4: if theft or diversion is suspected, or the variance exceeds the reportable threshold in [STATE] rules, notify [STATE REGULATORY AGENCY] within [REPORTING DEADLINE, e.g., 24 hours] and law enforcement where required. Step 5: document root cause and corrective action.
• 4.6 Periodic audits. A full wall-to-wall audit is performed [WEEKLY/MONTHLY] by employees who do not perform the daily counts, and is reviewed and signed by the General Manager.

5. Records
Daily count sheets, reconciliation logs, variance and investigation reports, corrective-action records, and copies of agency notifications are retained for [RETENTION PERIOD, e.g., 3 years or as your state requires] in [LOCATION/SYSTEM] and made available to [STATE REGULATORY AGENCY] on request. Records are corrected only by lined-out amendment or a system adjustment note with explanation — never by deletion.

6. Review Cadence
The Compliance Officer reviews this SOP at least annually and within [X] days of any change to [STATE] inventory rules, any reportable discrepancy, or any change of seed-to-sale platform. Revisions are recorded in the version history table, and staff are retrained on material changes before they take effect.

This template is a starting point for your own compliance program. Adapt it to your state’s regulations and have it reviewed by your compliance officer or counsel before adoption.