Inventory Management & METRC
How do I keep my cannabis inventory accurate, compliant, and ready for inspection every day?
Inventory is the most monitored part of your dispensary.
If your counts do not match what is on the shelves, OCM assumes there is a problem with how the store is being operated.
This page explains what must be done from intake to sale to waste, and what OCM looks for during inspections.
What Inventory Management Covers
You must track:
- Every product received
- Every movement within the store
- Every sale
- Every return
- Every waste or destruction event
This applies to all cannabis, not just product on the sales floor.
Intake: What Happens When Product Arrives
Every shipment must be:
- Accepted only at the licensed premises
- Counted and checked against the shipping manifest
- Verified for product type, quantity, batch or lot number, and labels
- Logged into the POS and inventory system before storage
- Placed into secure storage immediately after logging
Any discrepancies must be documented and reported.
Storage Requirements
Cannabis inventory must be stored in:
- A locked room, vault, or cage
- A space listed in the approved security plan
- An area not accessible to customers
- A location that matches the approved floor plan
Moving Product Inside the Store
All internal movement must be logged, including:
- Storage → Sales floor
- Sales floor → Storage
- Sales floor → Quarantine
- Storage → Destruction
- Storage → Delivery intake
Every movement must update inventory counts.
Daily Checks
Each day, operators must:
- Reconcile POS sales with inventory reductions
- Log returns, quarantines, and waste
- Check for miscounts, missing items, or display issues
- Verify that products on display match secure storage
Weekly Cycle Counts
Operators must perform:
- Weekly cycle counts
- Full physical counts on a regular schedule
Each count must record:
- Date
- Staff involved
- Areas or SKUs counted
- Variances and corrective actions
Quarantine & Returns
Returned or questionable products must be:
- Logged in the inventory system
- Removed from sellable stock
- Clearly labeled and stored in quarantine
- Reviewed for destruction or return to the distributor
Waste & Destruction
Products marked as waste must be:
- Logged with reason, date, and batch or lot number
- Placed in a locked waste area
- Destroyed according to approved SOPs
- Recorded in the inventory system the same day
METRC Requirements
New York requires all dispensaries to use METRC.
Physical inventory, POS data, and METRC records must match exactly.
What Must Be Entered Into METRC
- Intake and acceptance
- Sales and inventory reductions
- Returns and quarantine
- Waste and destruction
- Adjustments
POS ↔ METRC Sync
The POS system must:
- Integrate directly with METRC
- Deduct inventory automatically at sale
- Match SKUs and batch numbers
- Push adjustments the same day
- Block sales if syncing fails
Transfers & Adjustments
When accepting a transfer:
- Verify physical product before accepting
- Log accepted products accurately
- Reject or adjust discrepancies immediately
- Do not accept and fix later
Inspection Expectations
During inspections, OCM verifies:
- Physical inventory matches METRC
- Product locations and movement logs
- Quarantine and waste labeling
- POS accuracy
- Batch and lot traceability
Common Violations
Frequent inventory violations include:
- Accepting product without verification
- Missing or delayed METRC entries
- Unlogged product movement
- Improper quarantine handling
- Waste not logged or destroyed correctly
- Unresolved inventory variances
Why This Matters
Inventory violations are treated as operational failures.
They can result in:
- Stop-sale orders
- Corrective action plans
- Increased inspections
- Penalties or license suspension
Related Pages
Source Material
