How to Transfer Harvested Plant Material
Transferring the value of biological assets to Work-in-Process inventory upon completion of harvest.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| WIP Inventory - Cannabis Flower | Debit | 75,000.00 | - |
| Biological Assets - Cannabis | Credit | - | 75,000.00 |
💡 Accountant's Note
Moving costs from the biological asset account to inventory once the plant is cut and begins the drying/curing phase.
Practitioner & Systems Framework
💻 ERP Architecture
Trigger this entry upon the 'Harvest' event in the cultivation module.
⚠️ Audit Flags
Large adjustments to biological asset valuation just before harvest.
📄 Required Documentation
Harvest batch reports and weighing logs signed by the master grower.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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
Loading comments...