How to Record Extraction Winterization Costs
Recording the use of ethanol and labor specifically for removing fats and waxes from cannabis crude oil.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inventory - WIP Extraction (Refinement) | Debit | 3,200.00 | - |
| Inventory - Solvents (Ethanol) | Credit | - | 1,500.00 |
| Direct Labor - Extraction Lab | Credit | - | 1,700.00 |
💡 Accountant's Note
Winterization is a specific refinement stage. Costs (solvent and labor) are transferred from general inventory/payroll into the specific WIP stage for the product batch.
Practitioner & Systems Framework
💻 ERP Architecture
Utilize a manufacturing order (MO) to capture the step-down of crude to winterized oil.
⚠️ Audit Flags
Discrepancy between ethanol usage reported in seed-to-sale tracking and accounting entries.
📄 Required Documentation
Extraction lab batch records and solvent reclamation logs.
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Discussion & Community Questions
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