How to Record Cannabis Extraction Solvents
Journalizing the purchase of solvents such as ethanol or butane used in the extraction of cannabis oils.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Raw Materials - Extraction Solvents | Debit | 5,000.00 | - |
| Cash | Credit | - | 5,000.00 |
💡 Accountant's Note
Solvents are raw materials consumed during the extraction process. These costs are included in the cost of goods sold for tax purposes.
Practitioner & Systems Framework
💻 ERP Architecture
Track solvent usage per batch in the manufacturing module to calculate consumption rates.
⚠️ Audit Flags
Purchases of solvents exceeding extraction machine capacity ratios.
📄 Required Documentation
Invoices from chemical suppliers and material safety data sheets (MSDS).
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Discussion & Community Questions
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