To participate in the Government of Canada’s Cannabis Tracking System – licensed retail operators must ensure that they properly track, report and submit sales and inventory data to the AGCO on a monthly basis. To accomplish this, operators may wish to consider using a point of sale (POS) system that integrates or interfaces with an electronic or software-based perpetual inventory system that tracks all cannabis products that an authorized store purchases, stocks or sells.

 

REPORTING REQUIREMENTS

The guidelines listed below must be followed when calculating values submitted on the monthly Cannabis Monthly Federal Reporting template:

  • Cannabis products ordered/purchased during a reporting calendar month, but not physically received by the authorized store until the following month, can only be reported when the product is actually signed for and physically received into an authorized store’s inventory;
  • Cannabis products returned to the Ontario Cannabis Store (OCS) are the responsibility of, and owned by, the authorized store until the OCS physically receives them. If an authorized store returns cannabis products to the OCS, and the OCS does not receive them before the end of the reporting calendar month, the authorized store must account for, and report, those products as part of “Returns to OCS” in the subsequent month that the OCS received and acknowledged the returns;
  • Cannabis products must be reported in the Cannabis Monthly Federal Reporting template in the same quantity and measurement of each(es) in which they were purchased;
    • An each is a term used to describe the base unit of a product. For example, if a product is purchased by a retailer as a case that holds 12 units, that case would have a total of 12 eaches. When reporting to the AGCO every month, authorized stores must record and submit their inventory figures in accordance with the total number of eaches having a specific SKU. Quantities (in eaches) must be entered into the Units columns of the Cannabis Monthly Federal Reporting template.
  • In the event that an authorized store does not have a figure to input into the report, they should input a value of zero (0) into the cell. For example, a cannabis retail store did not have any consumer product returns in a given calendar month. In this instance there is no value to report, so the value input into the “Returns from Customers” column is zero (0);
  • An authorized store is only required to report and submit information of cannabis products or stock keeping units (SKUs) that it has in its inventory within the given calendar month. It is not required to report on all cannabis products or SKUs that it has ever purchased over the history of its operations, every month.

Please ensure the File Name follows the format “CRSA#_FED_MMYY”, where:

CRSA#: Retail Store Authorization Number;

MM: Month; and

YY: Year.

SUBMISSION REQUIREMENTS

Licensed cannabis retail stores must submit their completed reports through their iAGCO account by the 5th day of each calendar month. All data contained in the Cannabis Monthly Federal Reporting template must span from 12:01 AM on the first day of the calendar month to 11:59 PM on the last day of the calendar month. Reports must be submitted regardless of whether there were sales or inventory changes that occurred within the calendar month.

 

DATA DEFINITIONS

Authorized stores must track and report on all relevant transactions for cannabis products that they purchase from the OCS. Authorized stores should use the OCS product stock keeping unit (SKU) as the key reference within their POS and inventory tracking system. Licensed retail operators will receive the OCS Product SKU for every product they purchase from the OCS as part of a frequently-updated product catalogue. POS and inventory systems in licensed cannabis retail stores should use the Product Barcode/Unique Product Code (UPC) as a secondary identifier.

The Cannabis Monthly Federal Reporting template includes two sets of information:

  • General Information (entered into the second tab of the excel-based Cannabis Monthly Federal Reporting template): This refers to data elements that do not directly track the movement of the cannabis inventory but are required for federal reporting purposes. This information is specific to the number of employees employed at the end of the calendar month by the authorized store. Employees are defined as persons who, during the reference period, were employed at the reporting facility, regardless of the number of hours worked. Definitions of the data fields required are as follows:
Data Element Definition
Management Includes senior and middle management employees.
Administrative Includes financial, business, administrative, clerical, supervision, and support services employees.
Sales Includes retail and wholesale sales, and customer service employees
Production Includes supervisory, production, and general labour employees.
Other Includes all other employees.
  • Monthly Product Information (entered into the first tab of the excel-based Cannabis Monthly Federal Reporting template): This refers to data elements associated with cannabis product(s) or stock received by an authorized store. The table on the following page(s) details the required data elements featured in the Cannabis Monthly Federal Reporting template in addition to definitions and formulas:
Data Element Definition Formula
Name of Reporting Retail Store - Note: Enter this data in the row above the Cannabis Monthly Federal Reporting template table.
Retail Store Authorization (CRSA) Number - Note: Enter this data in the row above the Cannabis Monthly Federal Reporting template table
City - Note: Enter this data in the row above the Cannabis Monthly Federal Reporting template table.
Reporting Period (yyyy/mm) This is the calendar month and year for which the report applies. Note: Enter this data in the row above the Cannabis Monthly Federal Reporting template table.
Product Barcode/UPC This is the unique “universal product code” assigned to cannabis products purchased from the OCS. The authorized store’s system must reference the product barcode provided by the OCS in their perpetual inventory system. -
OCS Product SKU This is the unique product identifier assigned to cannabis products purchased from the OCS. The authorized store’s must reference the SKU provided by the OCS in their perpetual inventory system. -
Opening Inventory - Units This is the level of inventory or volume of product, in eaches, of a particular product or SKU at the beginning of a calendar month. Opening Inventory = Last Month’s Closing Inventory (Note: Based on previous month’s final report submitted to AGCO)
Opening Inventory - Value This is the total book value, net of sales tax, of inventory or eaches of a particular product or SKU at the beginning of a calendar month. Opening Inventory = Last Month’s Closing Inventory (Note: Based on previous month’s final report submitted to AGCO)
Quantity Purchased - Units This is the total number of eaches purchased and actually signed for and physically received into the inventory within a calendar month for a given SKU. This figure must not include any inventory ordered/purchased but not physically received by the authorized store as at the end of the reporting month.

(Quantity Purchased) = (All purchased eaches of a given SKU within the reported calendar month)

Any returns/destructions/product loss should not be taken into account for this calculation. This includes any purchases from prior months.

Quantity Purchased - Value This is the total book value, net of sales tax, of eaches purchased and actually signed for and physically received into the inventory within a calendar month for a given SKU. This figure must not include any inventory ordered/ purchased but not physically received by the authorized store as at the end of the reporting month.

(Quantity Purchased) = (The book value of all purchased eaches of a given product or SKU within the reported calendar month)
Any return/destruction/product loss should not be taken into account for this calculation. This includes any purchases from prior months.

Returns from Customers - Units

 

This is the total number of a given SKU returned by retail customers to a retail store in a given calendar month in eaches. This value should only account for customer returns and not returns to the OCS.

(Returns from Customers) = (All returned eaches, of a given product, within a calendar month)

Any returns to the OCS should not be accounted for in this calculation and given that a customer return shall result in a destruction, the initial return must be accounted for in this calculation.

Returns from Customers - Value This is the total retail value, net of sales tax, of a given SKU returned by retail customers to a retail store in a given calendar month. This value should only account for customer returns and not returns to the OCS.

(Returns from Customers) = (The retail value of all returned eaches of a given product within a calendar month)
Any returns to the OCS should not be accounted for in this calculation and given that a customer return shall result in a destruction, the initial return must be accounted for in this calculation.

Other Additions - Units

The total number of a given SKU in eaches added to a cannabis retail store’s inventory that does not fall within the scope of purchases or returns from customers plus unaccounted/unreconciled physical inventory overage variance. For instance, this could include products that are delivered to an authorized store as a result of over shipment; or receipt of products transferred from another authorized store that is owned by the same Licensed Operator (incoming inter-store transfer).

 

Unaccounted/unreconciled inventory overage variances identified from the results of the weekly physical count of inventories should also be reported as part of this total number.

(Other Additions) = (All product eaches, of a given cannabis product, which are received by a cannabis retail store that are not a purchase or return)
Other Additions - Value

This is the total book value, net of sales tax, of a given SKU in eaches added to a cannabis retail store’s inventory that does not fall within the scope of purchases or returns from customers plus unaccounted/unreconciled physical inventory overage variance. For instance, this could include products that are delivered to an authorized store as a result of over shipment; or receipt of products transferred from another authorized store that is owned by the same Licensed Operator (incoming inter-store transfer).

(Other Additions) = (All eaches, of a given product, which are accounted for at a retail store and received via legal means)
Quantity Sold - Units

This is the total number of a given SKU sold by an authorized store in a given calendar month to customers.

 

Cannabis inventory of a given SKU that is used internally for sensory displays must be accounted and reported as part of quantity sold in accordance with the Registrar’s Standards.

(Quantity Sold) = (All eaches of a given SKU sold within a calendar month + cannabis products used in retail stores for sensory displays)
Quantity Sold - Value

This is the total retail value, net of sales tax, of a given SKU sold by an authorized store in a given calendar month to customers.

 

Cannabis inventory of a given SKU that is used internally for sensory displays must be accounted and reported as part of quantity sold in accordance with the Registrar’s Standards.

(Quantity Sold) = (All eaches, of a SKU, recorded in the total number of eaches sold within a calendar month) + cannabis products used for sensory displays)
Quantity Destroyed - Units

This is the total number of eaches of a given SKU that has been destroyed in accordance with the Registrar’s Standards.

 

Cannabis products destroyed that were used for sensory displays should not be included as part quantity destroyed to avoid double counting. Note that cannabis products used for sensory displays must be reported as part of “Quantity Sold”.

(Quantity Destroyed) = (All eaches of a given product or SKU destroyed on the premises of a cannabis retail store within a calendar month)
Quantity Destroyed - Value This is the total book value, net of sales tax, of a given SKU that has been destroyed in accordance with the Registrar’s Standards.

 

Cannabis products destroyed that were used for sensory displays should not be included as part quantity destroyed to avoid double counting. Note that cannabis products used for sensory displays must be reported as part of “Quantity Sold”.

(Quantity Destroyed) = (The book value of all eaches of a given product or SKU destroyed on the premises of a cannabis retail store within a calendar month)
Quantity Lost/Theft - Units This is the total number of eaches of a given SKU that is subject to theft or is lost within a calendar month. (Quantity Lost / Theft) = (The quantity of eaches of a given product or SKU subject to theft within a calendar month) + (Eaches of a given product or SKU that is lost within a calendar month)
Quantity Lost/Theft - Value The book value, net of sales tax, of a given SKU that is subject to theft or is lost within a calendar month. (Quantity Lost / Theft) = (The book value of eaches of a given product or SKU subject to theft within a calendar month) + (Eaches of a given product or SKU that is lost within a calendar month)
Returns to OCS - Units The total number of a given SKU of an eligible product that is returned to and physically received and acknowledged by the OCS, recorded numerically as eaches, by an authorized store within a calendar month. (Returns) = (Total number of eaches of a SKU returned to a cannabis retail store, with in a calendar month)
This calculation should account for all product that is eligible for return to the OCS as outlined in the OCS Retailer Handbook.
Returns to OCS - Value

The total book value, net of sales tax, of a given SKU of an eligible product that is returned to and physically received and acknowledged by the OCS, recorded numerically as eaches,  by an authorized store within a calendar month.

(Returns) = (Product eaches of a given product or SKU returned to a cannabis retail store)
This calculation should account for all product that is eligible for return to the OCS as outlined in the OCS Retailer Handbook.
Other Reductions - Units

This include any reduction(s) to an authorized store’s product inventory (i.e., SKUs, physical inventory shortages), accounted for numerically in eaches, that does not fall within the scope of product sold, product destroyed, lost/stolen products, or returns to OCS.

 

Unaccounted/unreconciled inventory shortage variances identified from the results of the weekly physical count of inventories, and transfers of products to another authorized store that is owned by the same Licensed Operator (outgoing inter-store transfer) should also be reported as part of this total number.

(Other Reductions) = (All eaches of a given product which are unaccounted for at a retail store within a calendar month)
Other Reductions - Value

The total book value, net of sales tax, of any reduction(s) to an authorized store’s SKU of a given product that does not fall within the scope of product sold, product destroyed, lost/stolen products, or returns to OCS.

 

Unaccounted/unreconciled inventory shortage variances identified from the results of the weekly physical count of inventories, and transfers of products to another authorized store that is owned by the same Licensed Operator (outgoing inter-store transfer) should also be reported as part of this total number.

(Other Reductions) = (The total book value of all eaches of a given product which are unaccounted for at a retail store within a calendar month)
Closing Inventory - Units This is the level of inventory or volume of product, in eaches, of a particular product or SKU at the end of a calendar month. Closing Inventory = (Current Month’s Opening Inventory) + (Current Month’s Purchases) + (Current Month’s Returns) – (Current Month’s Returns to OCS) – (Current Month’s Sales) – (Current Month’s Destructions) – (Current Month’s Theft/Lost Products) + (Current Month’s Other Additions) – (Current Month’s Other Reductions)
Closing Inventory – Value This is the total book value, net of sales tax, of inventory or eaches of a particular product or SKU at the end of a calendar month. Closing Inventory = (Current Month’s Opening Inventory) + (Current Month’s Purchases) + (Current Month’s Returns) – (Current Month’s Returns to OCS) – (Current Month’s Sales) – (Current Month’s Destructions) – (Current Month’s Theft/Lost Products) + (Current Month’s Other Additions) – (Current Month’s Other Reductions)
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