How to Record Cannabis Delivery Vehicle Fuel
Recording fuel costs for vehicles used specifically for the delivery of cannabis products to retail customers.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Delivery Expense - Fuel | Expense | 120.00 | - |
| Cash or Corporate Credit Card | Asset/Liability | - | 120.00 |
💡 Accountant's Note
Fuel costs for delivery are considered a selling expense. For retailers, these are generally non-deductible under Section 280E.
Practitioner & Systems Framework
💻 ERP Architecture
Tag expenses with a specific department code for 'Delivery/Logistics'.
⚠️ Audit Flags
Blending delivery fuel with cultivation fuel (which is capitalized) is an audit risk; keep separate logs.
📄 Required Documentation
Fuel receipts and vehicle mileage logs indicating the purpose of the trip was delivery.
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Related Journal Entries
Cannabis & Regulated Substances
IRC §280E — Complete Disallowance of Ordinary Business Expenses (Cannabis-Specific Tax Law)
Cannabis & Regulated Substances
§471 Inventory Cost Capitalization — Maximizing COGS for Cultivators Under §280E
Cannabis & Regulated Substances
Biological Assets — Growing Cannabis Plants at Fair Value (IAS 41 for Canadian Companies)
Discussion & Community Questions
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