What is track and trace reporting, and what is required of me as a retailer?
Track and trace, or “seed to sale” reporting, is how the state monitors and traces every single cannabis plant along its entire life cycle—from seed to final consumer sale.
California has chosen Metrc as its official track and trace system. Retailers are required to submit daily reports with specific data from every commercial cannabis activity—including every sale, receipt, return, and disposal of cannabis products—by 11:59 p.m. of the day on which it occurred.
What is Metrc?
Metrc is a cannabis track and trace reporting system that allows state governments to monitor commercial cannabis activity. Metrc, short for Marijuana Enforcement Tracking Reporting Compliance, was originally developed for the state of Colorado but it is now used by many states with adult-use cannabis markets, including California.
Editor’s Note: It’s important to note that Metrc is simply a reporting tool. It is a robust inventory management platform or Point of Sale (POS) system. As a dispensary owner, it’s important to find an inventory management and POS system that integrates with Metrc to make compliance easier.
Do California cannabis stores have to use CCTT-Metrc?
Yes, the state makes it very clear that any California cannabis retailer with an annual license is required to use the CCTT-Metrc system. They are welcome to use other technology providers in addition to Metrc, but stores must report their data to the state through Metrc.
When can I start working with Metrc?
The state suggests that potential licensees assign a designated Metrc account manager to complete Metrc training during the license application process. Dispensary owners are required to finish training before they can start using the Metrc system.
Once you receive your annual retail operator license along with your username and password for Metrc, you may start using the system by ordering CCTT-Metrc UID tags for all of your current inventory (the cost of these tags are baked into the annual license fee).
How do I report in Metrc?
There are two ways to enter your daily track and trace reports.
Manual Reporting: This method requires logging in to your Metrc account at the end of every single business day and manually entering all the data from every transaction and other activity that occurred. Along with being time-consuming and cumbersome, manual reporting puts you at great risk of mistakenly recording incorrect information—which can lead to a serious compliance issue.
Automatic Reporting: Dispensary software specifically designed for cannabis retail (like Cova POS) can integrate with Metrc and automatically sync reportable data from your store’s transactions and activities as they occur in real time.
How do I report if the system is down or the internet is out?
If you lose connectivity to Metrc or experience an internet outage that prevents you from daily reporting, you must record all reportable information and upload it to the system within three days of restored connectivity.
Ideally, the POS system you choose should come with a built-in offline sales processing mode that enables access to critical functions even when your Wi-Fi or internet connection is unavailable. Once the internet is back up, all transactions should be synchronized with the state’s reporting system, the data be backed up, and reports and inventory records adjusted accordingly.
How do I manage state compliance using my point-of-sale?
Every retail cannabis location will need a dispensary POS software that provides complete seed-to-sale tracking functionality. To make state compliance easier, look for a point-of-sale software with the following built-in features:
Purchase Limits:The POS system should automatically calculate the correct THC amounts for all products, including concentrates and edibles. This prevents mistakes in calculation and allows your budtenders to focus on customer service.
The system should also enforce purchase limits by alerting staff when a limit has been reached and preventing a sale that would place you over the legal limit.
Hours of Operation: Once the local operational hours are configured, the POS should not allow sales to be executed outside the legal hours of operation, preventing costly violations.
Fully Compliant Product Labeling & Receipts: Complete customization of all printed materials, product labels, and receipts, enabling you to comply with all local regulations related to labeling and packaging quickly and easily.
Customer Identification Requirements: Customer IDs need to be scanned and recorded, ensuring your staff double checks IDs and virtually eliminating potential sales to minors or other individuals lacking the requisite documentation.
Accurate Real-Time Reporting: POS software like Cova will generate management reports in real time that bring operational visibility into your business.
Why is it important to have a marijuana-specific POS vs. a retail or pharmacy POS?
There are several reasons why a cannabis-specific POS is ideal for your operation—but the most important one is compliance management. Because traditional retail operations and pharmacies don’t have the same government-mandated compliance requirements, their POS systems aren’t built to manage the complexities involved with track and trace reporting and the other aspects of state compliance.
Also Read: California Cannabis Compliance: 7 Key Aspects to Consider
What happens if the state regulations change?
With the industry still in its infancy, regulations are bound to change. Your technology partner should keep up with industry-wide and state-specific changes to quickly make any necessary software updates.
Is Cova integrated with Metrc?
Yes, Cova now integrates with CCTT-Metrc in California! Once our POS is up and running in your retail location, all inventory should be tagged with Metrc tags, allowing Cova to report your sales to the state for you.
How do I do the 14-day inventory reconciliation?
California’s inventory reconciliation requirement will be an ongoing task, required every 14 days. Your POS system should allow you to print a full Inventory-on-hand report. Employees can then check it against your physical inventory with an inventory count. Then make any necessary adjustments directly into your inventory management system. If you have a quality technology partner, it will then sync the data across your network.
