Reconciliation
The recurring operational process of matching physical cannabis inventory to the quantities recorded in the state track-and-trace system, the ERP/seed-to-sale platform, and point-of-sale — identifying variances, documenting causes, and correcting the record.
What reconciliation is
Reconciliation is the periodic process of comparing what's physically present in a facility to what every system of record says should be present. In regulated cannabis, that means at minimum:
- Physical count — actual weight or unit count, by package
- Track-and-trace (METRC) — quantity recorded against each package tag
- ERP / seed-to-sale platform — internal operational record
- POS — for retail, the sales register's record of remaining inventory
When any pair of those numbers disagrees, the operator must identify why, correct the record, and document the correction.
Common causes of variance
- Moisture loss in flower as it cures (expected; should be modeled)
- Trim and waste not logged at the time of the operation
- Repackaging or splitting that wasn't reflected back in METRC
- POS scanning errors at retail
- Theft or diversion (rare but the variance investigators look for first)
Why it matters to compliance
Most states require a reconciliation cadence — daily for retail in some states, weekly or monthly for production — and require a written SOP for the process. Variance percentages above a state-defined threshold trigger reporting requirements. Unexplained variance is one of the most serious findings an inspector can make.
A defensible reconciliation program has three pieces: a written cadence in your SOPs, an audit trail showing it was actually performed, and a documented disposition of every variance.
Compliance is the entry point. The platform is the destination.
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