Is METRC Accurately Reporting
Initial Transfers?
One of METRC’s most important tools is the Transfers Report, which records all incoming and outgoing product from your facility over a given time period. This report is crucial for tax calculations. Cannabis excise tax structures vary across the United States, but for a lot of states, excise tax is based on the initial transfer of flower products.
METRC records the origin of the product and includes a “Type” column to indicate if a transfer was initial or subsequent.
However, METRC has limitations when tracking flower that enters your facility, undergoes multiple production processes or phases, and is then transferred out as a finished good. Often, these finished goods are mistakenly labeled as “initial transfers” within METRC, leading to potential overpayment of taxes.
High Cloud’s Enhanced Transfers Report catches this discrepancy by providing more detailed information about each transfer’s source tag, source item, and the facility that the harvest occurred at.
Our report clarifies whether flower was originally harvested in a separate facility and therefore exempt from additional excise tax. With added columns and precise data, High Cloud’s report helps you ensure you only pay what’s required.
These enhanced reports are designed for accountants and compliance personnel who handle monthly tax calculations. In traditional workflows, these professionals spend countless hours manually tracking the history of each product, piecing together its journey through multiple production steps to determine tax eligibility. High Cloud’s reports streamline this process by consolidating all necessary data in one place, reducing manual work and ensuring compliance.
With our detailed, tax-ready reports, your accounting and compliance teams can confidently calculate taxes while saving valuable time and avoiding costly errors.
