Recipe-level cost accounting
Each SKU has a bill of materials: cannabinoid input, food or carrier ingredients, packaging and labels. Cost has to be captured per batch and per unit, because a small change in input cost or batch yield moves the margin on a high-volume SKU substantially.
We build the bill of materials into the accounting system so standard cost updates automatically as input prices move.
- Cannabinoid input cost transferred at documented internal or purchase cost
- Non-cannabis ingredients, packaging and labeling as inventoriable cost
- Batch yield, rework and scrap tracked per production run
- Potency and safety testing required for sale treated as production cost
Compliance costs and where they belong
Missouri requires testing and packaging standards that add real cost to every unit. Testing needed to release a batch for sale is generally inventoriable; testing for product development or marketing claims is not. The distinction has to live in the chart of accounts, not in a spreadsheet at year end.
Shelf life, aging and write-downs
Edibles and beverages expire. Aged inventory needs a documented disposition policy, and write-downs must tie to the Metrc destruction record. Managing shelf life is inventory management and tax management at the same time.
Selling into Missouri retail
Most infused product manufacturers sell wholesale to dispensaries across Kansas City, St. Louis and Springfield. Receivables aging, slotting arrangements and promotional allowances all need to be recorded correctly, since none of them are recoverable through inventory.
Frequently asked questions
Can packaging be capitalized?
Primary packaging required to produce a compliant, salable unit is inventoriable. Promotional and marketing materials are period costs and are disallowed federally.
How should failed batches be treated?
Normal process loss is absorbed into the cost of good output. Abnormal loss is expensed as incurred and documented with the corresponding destruction record.
