In California, cannabis retailers may provide free cannabis products to medical patients or their caregivers as part of compassionate care programs. This change is due to the adoption of Senate Bill 34, which also exempts these donated items from taxes. You can read more about donations of cannabis here.
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Marking a Package for Donation in Metrc
For tracking purposes, all inventory intended for donation must be marked as such in Metrc. Follow the instructions below to designate a package for donation before importing the package into Treez.
Designating an Entire Package for Donation
To mark all of a package’s contents for donation, follow the steps below.
Step 1: Log in to your Metrc portal and navigate to Packages > Active.
Step 2: Identify the package you’d like to designate for donation and click the package’s row to select it. It will be highlighted orange when selected.
Step 3: Click Donation > Add.
Step 4: In the modal that appears, review the package number and click Add Donation to Packages.
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Creating a New Package (Splitting) for Donation
If you’d like to mark only a portion of a package’s contents for donation, you need to first split the units you’d like to donate into a new package.
Step 1: Log in to your Metrc portal and navigate to Packages > Active.
Step 2: Identify the package you'd like to split donation units out of, and click the row to select it. It will be highlighted orange when selected.
Step 3: Click New Packages.
Step 4: In the 'New Tag' field, enter an unused package tag # which will become the new child package you're creating.
Step 5: In the 'Item' field, type the name of the item you're splitting.
Tip: When splitting a package of a single product, the Item name will always be the same as the original package, as the Item remains the same even though it's being put into a new package #.
Step 6: In both 'Quantity' fields, enter the amount and unit of measure that you're splitting out into the new donation package. Though it may seem counterintuitive, these fields should match on both the left and right. (The 'Quantity' fields on the left indicate what will be created in the new donation package, and the 'Quantity' fields on the right indicate what will be removed from the original package.)
Step 7: Click today to the right of the 'Package Date' field, and leave the 'Production Batch' checkbox unchecked.
Step 8: Check the ‘Donation’ checkbox.
Step 9: Click the green Create Packages button.
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Importing a Donation Package to Treez
Follow the steps below to ensure that the package's inventory is excluded from taxes and the donations are tracked separately from standard sales in your reports.
Step 1: If you haven't brought in this product as a donation before, navigate to Product > Product Management and create a donation version of the product. Fill out all the required fields as usual, except:
In the 'Name' field, enter the product's name according to your standard naming convention, and add the word 'Donation' so you can distinguish between the standard and donation product cards.
In the 'Pricing' section, set the product's price to $0.
Step 2: Navigate to Inventory > Purchasing and invoice inventory imported from Metrc, as usual, to bring in the package marked for donation.
Step 3: Assign the donation package to the donation version of the product, and accept the invoice.
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Providing Donation Items to Patients
All free distributions of compassionate care items must be processed as standard Medical sales (with $0 cost donation version products) in Sell Treez. This ensures the donations are
Reported to Metrc, and
Do not exceed purchase limits.
Because donation items are free from cost and tax, it may seem easy to hand the items over to patients without processing them through Sell Treez. This is not compliant.
Operators who wish to offer donations to patients must follow the requirements to compliantly do so. Processing the donations through Sell Treez also prevents count discrepancies between your real-world count and Treez.
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