The Cannabis Retailer’s Guide to Metrc Compliance

Metrc – which stands for Marijuana Enforcement Tracking Reporting Compliance – is a cloud-based seed-to-sale tracking system used by state regulators to monitor cannabis products from cultivation to final retail transaction. Every cannabis item must be accounted for, and Metrc ensures this transparency by using RFID tags and strict data reporting protocols.

Retailers are legally required to use Metrc in states where it has been adopted. This includes tracking inventory, reporting sales, recording product transfers, and adjusting stock levels.

Metrc compliance is critical for cannabis retailers because it:

• Keeps your store compliant with local laws and licensing requirements
• Prevents diversion of cannabis products into the black market
• Ensures purchasing limits are enforced
• Protects consumer safety by enabling product recalls when necessary

When integrated with a Metrc compliant point-of-sale (POS) system like Cova, Metrc becomes much easier to manage. Most compliance tasks can be handled by automation, which reduces your risk and saves a lot of time in labor that could be better spent attending to customers or taking care of other tasks.

Metrc Connect is the next-generation API platform developed by Metrc based on industry feedback. It was designed to improve how cannabis businesses and technology providers interact with the Metrc system. This modern integration model facilitates more efficient and secure data exchanges between a retailer’s POS or inventory management systems and the state’s compliance platform.

Unlike Metrc’s older API, Metrc Connect supports advanced features like real-time data syncing and streamlined reporting. This allows integrated POS systems to:

• Automatically report sales and inventory adjustments
• Validate patient purchase limits at the point of sale in medical markets
• Minimize manual entry, reducing the likelihood of human error

There are two integration tiers under Metrc Connect:

• The Standard tier allows free access to standard functionality.
• The paid-access Metrc Connect tier includes enhanced API capabilities and features.

Several states including Oregon, Maryland, and Michigan have fully transitioned to Metrc Connect, which means all third-party software platforms – like your POS – must integrate through this paid tier. If your current POS does not support Metrc Connect, you risk falling behind in compliance, which could lead to fines or other penalties. That’s why it’s critical to choose a POS solution like Cova with proven Metrc integration and full support for Metrc Connect. Cova’s system leverages this enhanced API to provide real-time syncing, reduced manual data entry, and end-to-end automation of your compliance workflow.

Yes! Cova has years of proven experience integrating with Metrc in several states, and we fully support both the legacy API and the newer Metrc Connect platform. Whether you’re new to Metrc or switching from another traceability platform, we’ll help make the transition smooth and painless.

Cova’s robust Metrc integration enables:

• Automated reporting of all cannabis sales to Metrc without manual input
• Real-time purchase limit enforcement for customers and patients
• Ability to accept, manage, and reconcile incoming inventory manifests
• Syncing of your physical inventory with Metrc to ensure accuracy
• Printing of compliant product labels on demand

Retailers making the switch from BioTrack to Metrc – as many in Illinois are doing in 2025 – can count on Cova to make the transition simple and low-stress.

Metrc is the state-mandated track-and-trace solution in over 20 U.S. states, making it the most widely adopted compliance platform in the cannabis industry.

States currently using Metrc include:

• California
• Colorado
• Illinois (transitioning in 2025)
• Oregon
• Maryland
• Michigan
• Missouri
• Minnesota
• Oklahoma
• Montana
• Maine
• New Jersey

Each state can configure Metrc slightly differently, with unique tagging, reporting, and compliance rules. At Cova, we’re able to adapt to each market’s specific requirements to keep our clients compliant and running efficiently.

You can view the full list of states and their Metrc rollout details on the Metrc Partners page.

Before you begin using Metrc in your dispensary, you’ll need to complete a few steps. Metrc requires that all cannabis licensees receive a baseline level of training and register before gaining access to the system.

To get started, you’ll need to:

• Complete the required Metrc training. Metrc offers an online learning portal for each state. Retailers must complete this training to receive login credentials and system access.

• Register through your state’s onboarding portal. After training, you’ll create your official Metrc account.

While not required, Metrc also provides a testing environment called a sandbox to help you get acclimated to the interface and workflows before using the system live. The sandbox is available to paid Metrc Connect users, depending on the particular plan.

How much does Metrc cost?

Costs for Metrc access vary by state. In some markets, access to Metrc is free to licensees, and the state absorbs the platform cost. However, dispensaries are often responsible for purchasing RFID tags, which are typically sold in bulk. Indirect costs like employee training time and added labor from manual reporting can also add up, especially if you’re not using integrated software like Cova to streamline those processes.

While you can technically use the Metrc web portal to complete mandatory tasks, it is not optimized for retail workflows. For most dispensary operators, using a dedicated Metrc POS system like Cova is essential to staying compliant and efficient.

Here are a few reasons why a Metrc-integrated software solution is ideal for cannabis retailers:

• Submitting daily sales manually through the Metrc portal is time-consuming and puts you at greater risk of reporting errors.
• Adjusting inventory or accepting manifests requires numerous steps that can be automated with a smart POS system.
• Without integration, there’s a higher risk of mistakes that could result in compliance violations.

Cova automates much of this work for you. By connecting directly to Metrc, Cova ensures your inventory, sales data, and purchase limits are updated in real time – so you can focus on customers instead of paperwork.

Every cannabis product must be assigned a unique identifier, known as a Metrc tag. These tags use RFID technology and are issued by the state through the Metrc system. Tags track each item’s journey through the supply chain.

For retailers, this means you’ll receive tagged packages from vendors, and you’ll need to log or scan those tags when:

• Accepting and receiving product manifests
• Transferring products between stores
• Recording adjustments or destruction of inventory
• Reporting product sales to customers

Each tag corresponds to a unique Metrc ID number that links directly to product details in the system. Cova makes it easy to scan, track, and update tag information without extra steps.

On a day-to-day basis, Metrc becomes a central part of your retail operation. Whether you’re handling new shipments, making adjustments, or closing out your register, chances are you’re interacting with the Metrc system in some way.

You’ll typically use Metrc in your dispensary to:

• Receive and accept shipment manifests from distributors
• Record all product movements and inventory adjustments
• Report daily sales transactions
• Reconcile physical inventory with what’s reported in the Metrc system
• Handle product returns and disposals in accordance with state rules

When integrated with Cova, these actions can be done automatically or with just a few clicks – saving you from hours of manual work and potential errors.

As a cannabis retailer or dispensary owner, you bear full responsibility for the accuracy of your Metrc data. Even if you’re using third-party tools or POS systems, any discrepancies in your reporting ultimately fall on your license.

Your key responsibilities include:

• Ensuring your Metrc inventory matches your physical stock on hand
• Logging all sales, returns, and adjustments in a timely manner
• Investigating and correcting discrepancies
• Maintaining audit trails and documentation

Because Metrc is subject to audits by regulatory agencies, any errors could result in serious penalties. This is why many dispensary operators choose a Metrc-certified POS provider like Cova. Our system helps flag discrepancies, automate reporting, and prepare your records in case of an inspection.

Mistakes in Metrc reporting can cause serious problems including fines, inventory holds, and in severe cases, suspension or loss of your retail license. Regulators expect pristine records with no discrepancies; anything less is typically treated as a potential sign of diversion or mismanagement.

Common Metrc mistakes include:

• Misreporting or failing to report product sales
• Accepting inventory into the wrong location
• Using incorrect package IDs or transferring without proper documentation

Fortunately, many of these risks can be avoided by using a POS like Cova that validates entries before they reach Metrc. Our software includes built-in compliance checks and alerts to ensure you’re submitting accurate information every time.

If you’re just getting started with Metrc, here are a few tips to help make your transition smooth and successful:

1. Train your team early. Every staff member involved in inventory, compliance, or sales should understand how Metrc works.

2. Reconcile often. Don’t wait for an audit – do internal spot checks weekly to make sure your numbers match up.

3. Automate wherever possible. Manual data entry is one of the biggest risk factors. Use a Metrc-integrated POS like Cova to simplify the process.

4. Stay up to date. Metrc features and state regulations can change frequently. Make sure your team is always informed.

5. Lean on your tech partners. Cova offers hands-on onboarding and customer support to guide you every step of the way.

Whether you’re switching from BioTrack, expanding into a new state, or preparing to onboard Metrc for the first time, Cova is here to help. Our cannabis retail software is purpose-built to make compliance effortless – without sacrificing the user experience your team and customers depend on.

With Cova, you can expect:

• Full support for both legacy Metrc API and Metrc Connect
• Real-time inventory and sales syncing
• Automated compliance workflows
• Built-in alerts and validation to reduce reporting errors
• Hands-on onboarding and training for your staff

Let’s take the stress out of Metrc compliance so you can focus on growing your business. Click right here to get started – we can even set up a personalized demo to show you exactly how Cova can help your business thrive.