METRC Inventory Management 5 — Questions and Answers
Question 1: In METRC, what is the difference between 'on-hold' and 'quarantine' package statuses?
- On-hold means awaiting lab results; quarantine means the product failed testing
- On-hold is a METRC system status preventing transfers; quarantine is a physical separation practice, often not a distinct METRC status (Correct answer)
- On-hold applies only to flower products; quarantine applies to infused products
- They are identical statuses used interchangeably in all METRC states
Correct answer: On-hold is a METRC system status preventing transfers; quarantine is a physical separation practice, often not a distinct METRC status
In METRC, 'on-hold' is a system-level status that restricts package movement, while 'quarantine' typically refers to a physical practice of separating product, which may not be a separate METRC status in all jurisdictions.
Question 2: A processor wants to create a tincture using cannabis oil from two different source packages. How should this be recorded in METRC?
- Create one new package from the first source, then manually add the second source's quantity
- Use the production batch feature to record multiple input packages yielding one or more output packages (Correct answer)
- Transfer both source packages to a temporary holding package before creating the final product
- Create two separate tincture batches and then merge them into a single package
Correct answer: Use the production batch feature to record multiple input packages yielding one or more output packages
METRC's production batch functionality is designed to handle multi-input manufacturing processes, allowing a processor to record multiple source packages combined into new output packages.
Question 3: A METRC package tag is affixed to a package that was then destroyed. Can the tag be reused on a new package?
- Yes, tags can be reused after a 30-day waiting period
- Yes, if the original package was destroyed before any transfers were recorded
- No, METRC package tags are single-use and cannot be reassigned once used (Correct answer)
- No, unless a state regulator issues a special reuse authorization
Correct answer: No, METRC package tags are single-use and cannot be reassigned once used
METRC package tags are unique identifiers that are permanently retired once assigned to a package — they cannot be reused under any circumstances.
Question 4: What is the purpose of the 'note' field when making a package adjustment in METRC?
- It triggers an automatic notification to the state regulator
- It provides a mandatory reason or explanation for the quantity change to support audit trails (Correct answer)
- It locks the package from further adjustments until reviewed
- It sets a reminder for the next physical inventory count
Correct answer: It provides a mandatory reason or explanation for the quantity change to support audit trails
The note field in a METRC package adjustment records the reason for the quantity change, creating an audit trail that inspectors can review during compliance checks.
Question 5: Under METRC rules, which of the following is an example of an activity that would require creating a new package rather than adjusting an existing one?
- Correcting a data entry error in quantity
- Recording moisture loss from a drying harvest batch
- Splitting a bulk package into smaller retail units (Correct answer)
- Reconciling a minor weighing discrepancy within tolerance
Correct answer: Splitting a bulk package into smaller retail units
Splitting a bulk package into smaller retail units requires creating new packages with new tags, as each distinct retail package must be separately tracked in METRC.
Question 6: How does METRC handle the concept of 'remediation' for a package that has failed pesticide testing?
- The licensee destroys the package and records waste, with no option to recover the material
- The licensee may create a remediation package from the failed lot, apply an approved remediation method, and resubmit for testing (Correct answer)
- The package is automatically transferred to the state for disposal
- The licensee may sell the product with a disclosure label without further testing
Correct answer: The licensee may create a remediation package from the failed lot, apply an approved remediation method, and resubmit for testing
In jurisdictions that allow remediation, licensees can create a remediation package in METRC, apply an approved method (e.g., CO2 washing), and submit the new package for retesting before it can enter the retail supply chain.
Question 7: A METRC licensee is closing their business. What is the required final step in METRC regarding their remaining inventory?
- Leave the packages active; the state will close them upon license revocation
- Transfer all remaining inventory to another licensed facility or record it as destroyed, ensuring METRC reflects zero active inventory (Correct answer)
- Archive all packages manually without any transfer or destruction documentation
- Submit a final inventory report to the regulator and delete the account
Correct answer: Transfer all remaining inventory to another licensed facility or record it as destroyed, ensuring METRC reflects zero active inventory
Upon license surrender or closure, all remaining inventory must be lawfully disposed of — either transferred to another licensee or destroyed and documented in METRC — so that active inventory reaches zero.
METRC Inventory Management 5
In METRC, what is the difference between 'on-hold' and 'quarantine' package statuses?