How to Record Cannabis Distillate Production
Records the conversion of crude oil into refined cannabis distillate through molecular distillation processes.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inventory - Distillate (Finished Goods) | Debit | 8,500.00 | - |
| Inventory - Crude Oil (WIP) | Credit | - | 7,000.00 |
| Direct Labor - Extraction (Applied) | Credit | - | 1,000.00 |
| Manufacturing Overhead (Applied) | Credit | - | 500.00 |
💡 Accountant's Note
This entry moves costs from crude oil work-in-progress to finished distillate, incorporating the labor and overhead costs associated with the distillation phase.
Practitioner & Systems Framework
💻 ERP Architecture
Ensure conversion ratios in the ERP match the METRC or state tracking system output weights.
⚠️ Audit Flags
Yield variances between crude input and distillate output.
📄 Required Documentation
Distillation batch logs and lab results confirming potency of final distillate.
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Discussion & Community Questions
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