California Recreational Sales January 1, 2018
As of January 1, marijuana retailers who have received an adult use license by the State of California will be able to sell current inventory to recreational consumers. Please use the following workflow as the recommended best practice within your Tracker system for the state of California.
- Define patient groups for your municipality’s approved cannabis consumer groups (i.e. State Issued Medical Card Patient, Doctor Recommendation Patient, Adult Consumer/Rec Consumer). This will give you the ability to set separate limits for each category of product applicable to the different patient groups, define tax profiles and overrides, and run reports based on sales for your different clientele segments.
- To do this, navigate to Admin > Customize Lists.
- Patient Groups will appear toward the bottom of the list.
- To add a patient group, click Add terms, or click List terms to see a list of existing patient groups.
- A new patient group record will ask for a Term name, which will appear as the group’s name wherever applicable. It also provides a field to Upload an Image, which will appear as an icon next to any patients in queue assigned to it.
- When record creation or any changes are complete, click the Save button.
Once you have created your groups, any NEW customer that comes in will have to be tagged with that corresponding group. You can edit individual patient profiles for returning patients and assign them to their corresponding groups as they return to your location.
- To assign a group to a customer record, navigate to the customer record’s edit page. The Group drop down next to the name will allow you to select from all patient groups created in the system.
- When record changes are complete, click the Save button
On January 1, all consumers will be charged different tax rates and an additional excise tax. However, sales tax will be dependent upon that client’s customer group. Please check your local municipality for your tax standards.
First, you’ll want to add your tax rates (local tax, county tax, state tax, and sales tax)*
- Go to Admin > Taxes > Rates
- Enter in New Tax Rate by clicking on Add Tax Rate
- Name Tax Rate
- Rate must be entered as decimal - .17
- Make sure to select all categories that this tax rate will be assigned to
- Click submit
- Repeat for additional tax rates
California Excise Tax
Starting January 1, all Marijuana retailers will collect an excise tax on cannabis products. MJ Freeway has created a button to calculate this rate before any other taxes are applied. You will have to “enable” the special excise tax for each tax rate you create.
Next, you’ll want to edit your tax profile to assign your tax rates with their corresponding Patient Group: (i.e, “State Issued Medical Card Tax” patient group will pay tax rates “State Tax, County Tax”).
- Go to Admin > Taxes > Tax Profiles
- Click on Edit with corresponding Profile Name
- Add on New Tax Rate under Tax Name, and REMOVE THE OLD TAX RATE*
Because Recreational Sales will have the highest population, MJ Freeway recommends setting your Adult Use Tax Profile as your default Tax Profile.
- Selecting "add location" under the Recreation Excise Tax Profile will make that the default tax location.
- The highlighted locations will have their default tax profile overwritten will appear after selecting the locations.
- After saving the profile the default location will appear on the list of tax profiles
Overriding the Default Tax Profile
- Select the correct patient group
- Check the Tax Override box and select the tax profile that corresponds to that profiles Patient Group.
*We Recommend Changing Tax Rates and Tax Profiles during non business hours.
Reporting: In California, to run reports based on your different clientele segments, you will want to use the Order Products.
Reports > Report Center > Store Reports> Order Products
- Choose your data parameters, location(s) you want to run the report for and any additional options then hit Run Report
Associating Transaction Limits to Patient Groups
Once your patient groups have been created, you can assign transaction limits within each category directly related to each patient group.
- Navigate to Admin>Customize Lists>List Terms
- Click ‘Edit’ for whichever category you’d like to place a transaction limit.
Once you’re in the edit page of the category, mid-way down the page you’ll see a section titled Transaction Limits. Within that section you can determine the patient group you’d like to assign a limit to, whether the system will block the budtender from going over the limit or warn them that they are and what the limit unit of measurement is. Grams is typically used for “Flower”, Unit limit is for simple inventory items and MIP limit is for products that have the MIP box checked in their setup.
When you have one patient group limit set how you’d like, click ‘Update Limits’ and then scroll to the bottom of the page and save. Repeat this for all patient groups that you’d like to associate limits to.
Enabling Batch Tracking – Seed to Sale Tracking
Batch Tracking allows you to track every batch, within a strain, from the time of harvest to the point of sale. As of January 1, all California clients who are not currently batch tracking, will be required to create a unique ID and designation for every “package” brought into a retail facility.
If you are not currently batch tracked, you will need to enable batch tracking. It will not be able to be disabled. Before enabling batch tracking, please contact firstname.lastname@example.org or (888) 932-6537 Ext. 1
1. Navigate to Admin > Settings > Inventory Setting
2. Check the *Enable Batch Tracking