Standard Operating Procedures — Finance & Cash Handling
These SOPs form the core of Red Run's retail financial operations. Every supervisor must understand and execute these procedures accurately to ensure IRC Section 280E compliance, audit-ready records, and timely payment of all obligations.
| Bag | Purpose | Target | Funding Rule |
|---|---|---|---|
| Bag #1 | Sales Tax | Variable | Dutchie tax, round UP to $20 |
| Bag #2 | 280E Set-Aside | Variable | Net Revenue × 0.15, round UP to $20 |
| Bag #3 | Payroll | $15,000 | Maintain target balance |
| Bag #4 | Overhead | $6,000 | Rent, utilities, CC reimb. |
| Bag #5 | COGS (Vendors) | Variable | Cannabis vendor payments only |
| Priority | Payment Type | Timing |
|---|---|---|
| 1 | Cannabis Vendor COGS | On delivery (Thursdays) |
| 2 | Rent | By the 5th |
| 3 | Utilities | By due date |
| 4 | CC Reimbursements | By the 10th |
| 5 | Loan Payments | Per agreement |
| 6 | Payroll Taxes (941) | By the 15th |
| Location | Entity | QB Company |
|---|---|---|
| RRCo-5455 | Red Run Cannabis Company LLC | Red Run Cannabis Company |
| RRCo-Reds | Red Run Cannabis Company LLC | Red Run Cannabis Company (Reds) |
| RRCo-KBR | KBR Retail LLC | KBR Retail |
| RRCo-910 | Red Run Anchorage Holdings LLC | RRCo-ANC — 910 categories |
| RRCo-225 | Red Run Anchorage Holdings LLC | RRCo-ANC — 225 categories |
| RRCo-36A | Red Run Anchorage Holdings LLC | RRCo-ANC — 36A categories |