With Metrc now implemented in Oklahoma, you may need to create a new child package from a package received into your inventory. This process, also known as “split-lotting,” is required for specific actions you may need to take in your day-to-day workflows.

In this article, we will go over what split-lotting is, when to use it and how this functionality works across Metrc and KlickTrack.

What is Split-Lotting?

In its basic form, split-lotting is the process of creating a child package from a package you have received into your inventory. Several scenarios may require you to create a new child package, including:

Scenario 1: Creation of new products from a bulk flower package. 

You must create a child package if you intend to create new products from your bulk flower packages, such as pre-rolls or pre-packaged containers.

Why?

Metrc package tags are single-use and can only be assigned to a single unique product. OMMA deems pre-rolls and pre-packaged flower containers made from bulk flower packages as new unique products that require their own tracking tag in the system.

Scenario 2: Transfer of a package with historical sales associated with it. 

You need to create a child package if you have sold products from a package and need to transfer out the rest of the package. (ex: returning products to a vendor).

Why?

Metrc package tags can only exist in a single location at any given time. Once you transfer out a package, it is no longer associated with your license; thus, you will be unable to edit the sales associated with that package. That means that if you encountered an issue with the sale at a later date and needed to modify the receipt, you would be unable to do so without assistance from Metrc.

Scenario 3: Transfer of a partial package with an intention to sell the remaining items from the package. 

A child package is needed if you received a package into your inventory and intended to transfer half of that package to another location and sell the remaining items from the package. (example: Transferring half of a package to another facility under the same ownership)

Why?

As noted above, Metrc package tags can only exist in one licensed location at a given time. Therefore, in this scenario, if you transfer the partial package to another facility without splitting it first, you transfer the ownership of the entire package to that facility. This means that if you tried to sell the remaining items from the package, you would be unable to report those items properly because those items would not be associated with your active inventory.

How to create a new child package

1. In Metrc, create a new item (or items if you have multiple packages you are transferring out) by going to Admin > Items > Add item.




2. Once you've created the new item (s), navigate to Packages > Active and click "New Package." This will pop a new package form.




3. In the new package form, enter in the necessary information, including:

   • New package ID tag (click the magnifying glass to choose an available ID)

   • Inventory location

   • Item Name (select the item created in Step 1)

   • Qty

   • Unit of Measure




4. On the right-hand side of the form, you will see the source package that you are creating this new package from. In the source package area, you will need to enter the qty you are removing from the source.

   • You can select "Finish the package" if you intend to send out the rest of the package.




5. Select "Create Package."




6. Repeat the steps above for all items you wish to transfer out of the store.




7. Once you have created all the packages you need, take the physical Metrc package tag(s) and attach them to the new package(s).

   • Your recipient cannot accept the transfer without the physical tags applied to the carton.




8. Next, you will need to bring in the newly created product via a manual manifest in KlickTrack, so the product is added to your KlickTrack inventory.




9. Lastly, you will need to print a compliance label for your new pre-rolls. Currently, KlickTrack recommends using the Zebra essentials software to create a template for your packaged pre-roll compliance labels. 

FAQs

1. Do I have to do split-lotting to remain compliant?

Yes. Failure to create new packages when needed will result in discrepancies in your data and products that cannot be fully tracked. These types of issues are one of the leading causes of regulatory audits and can lead to your business being fined and/or suspension of your license. 

2. I finished creating my new package, how do I create a manifest to transfer the items out of my store?

In our article titled “Creating an Outbound Inventory Transfer”, you can find detailed instructions on when and how to create an outbound manifest.