SOP-100.000.209

🚚 Handling Vendor Payments

Cannabis Vendor COD Payments, Verification & Distru Reconciliation

Version
v2.0
Effective
April 2026
Owner
Tim Clark
📋 Purpose

This SOP provides standardized procedures for handling cannabis vendor payments at Red Run Cannabis retail locations. Cannabis product purchases are cash-on-delivery (COD) — payment is made when the product is received.

These payments are made from Bag #5 — COGS (Vendors) and must be properly documented, verified against invoices, and reconciled in both QuickBooks and Distru.

🚚 Vendor Delivery Day Workflow
Standard Delivery Day: Thursdays
Payment Source: Bag #5 — COGS (Vendors)
Documentation Required: Invoice, Manifest, Payment Receipt

When Vendor Arrives:

  1. Verify the vendor is on the approved vendor list in Distru
  2. Request the invoice and manifest from the driver
  3. Compare manifest SKUs against physical product counts
  4. Verify invoice totals match manifest quantities × unit prices
  5. Check product condition — reject damaged or improper packaging
  6. Sign manifest ONLY after physical verification is complete

Payment Process:

  1. Count cash from Bag #5 matching invoice total exactly
  2. Have vendor count and verify the payment amount
  3. Obtain signed receipt from vendor acknowledging payment
  4. Photograph the signed receipt and invoice together
  5. Upload photo to CannaOps → Invoices → Upload (Photo-to-Bill pipeline)
  6. Confirm the draft bill when Axis presents it
📄 Required Documentation
DocumentFromRetainUpload
Cannabis ManifestVendorPhysical + ScanCannaOps
Vendor InvoiceVendorPhysical + ScanPhoto-to-Bill
Payment ReceiptVendor signsPhysical + ScanPhoto-to-Bill
COA (Certificate of Analysis)VendorDigitalDistru
⚠️ Never Pay Without: Matching manifest, complete physical count, and signed receipt. If any discrepancy exists, do NOT pay until resolved with vendor and Tim Clark.
🔄 Distru Reconciliation

All vendor deliveries must be reconciled in Distru within 24 hours of receipt:

  1. Log into Distru with your location credentials
  2. Navigate to Inventory → Incoming Transfers
  3. Find the transfer matching your manifest number
  4. Verify quantities match what was physically received
  5. Accept the transfer in Distru
  6. Verify METRC shows the transfer as accepted
🚨 METRC Compliance: Distru transfer acceptance updates METRC automatically. Failure to accept within 72 hours is a compliance violation. Tim Clark must be notified immediately if any transfer cannot be accepted.
💰 Bag #5 Management
RuleDetails
PurposeCannabis vendor COGS payments ONLY
Target BalanceVariable — based on expected deliveries
Funding SourceRemainder after Bags 1-4 are funded
Never Use ForRent, utilities, overhead, non-cannabis vendors

If Bag #5 is insufficient for a scheduled delivery, escalate to Tim Clark at least 24 hours before the delivery date.

📝 Knowledge Check

Complete the quiz to verify your understanding of SOP-209.