How to use cycle counts

A cycle count is a physical count of the products in your inventory. You count what's actually on your shelves, then compare it to what Meadow shows. Any differences get flagged so you can investigate and correct them.

The California DCC (Department of Cannabis Control) requires a full inventory count every 30 days. Meadow's cycle count tool makes this easy — whether you're counting on the iPad app or in Meadow Admin.

New to cycle counts? Here's the short version:

Go to Inventory > Cycle Counts in Meadow Admin or open Cycle Count on the iPad app
Select your inventory location and category
Create a new count — your team physically counts products by scanning or entering quantities
Submit the count when done — a manager reviews discrepancies, missing products, and conflicts
Finalize to lock it in and sync adjustments to Metrc (California's track-and-trace system)

We recommend counting by category each week so you stay compliant without the end-of-month scramble. Read on for the full walkthrough.

Before you start

A few things to know before you open your first count.

Cycle count statuses

Every cycle count goes through three stages:

Open — The count has been created and is being worked on. Avoid having two open counts for the same location and category at the same time.
Submitted — Counting is done. The count is waiting for a manager to review and finalize it. You can still add to a submitted count if needed.
Closed — The count has been finalized. No further changes can be made.

Good to know

You can count while the store stays open. Meadow allows you to conduct cycle counts during business hours — no shutdown needed.
Inactive products won't appear in iPad cycle counts. If you need to include inactive products, add them from Meadow Admin.
Cycle counts are location-specific. Each count applies to one inventory location only. A count in the vault won't affect quantities on the sales floor. More on this below.
You can leave a count open and come back to it. Just be aware that any inventory changes made while a count is open (sales, transfers, purchase orders) may create conflicts you'll need to resolve later.

How to count on the iPad app

The iPad app is the fastest way for your team to count inventory on the floor. This section is for budtenders and floor staff.

1. Open the cycle count tool - Select Cycle Count from the app Tool Select menu.

2. Choose your location and category

Select the inventory location you're counting (e.g., Retail Floor, Vault)
Select the category (e.g., Flower, Edibles, Concentrates)
You'll see a list of open, submitted, and closed counts for that location

3. Create or continue a count

Tap New Cycle Count to start a fresh count, or select an existing open count to continue where you left off
Name your cycle count (optional, but helpful when running multiple counts)

4. Count your products - You can count products two ways:

Scanning (recommended): Scan a product barcode to scroll to that product and add 1 unit automatically. Scan again to add another. Scanning ensures you're counting the correct Metrc batch — not just the right product name.
Manual entry: Tap a product and enter the quantity by hand.

Products appear in alphabetical order by product name. If you've added many products, scanning will scroll to locate the right one.

5. Manage your count - When you open a cycle count, you have three options:

Edit — Continue adding or changing product quantities
Submit — Send the count for manager review when you're done. The submitted count shows the sum of all quantities added by all users.
Delete — Remove this cycle count and all its data. This cannot be undone.

6. Submit for review - When your assigned area is fully counted, tap Submit. The count moves to the submitted stage for a manager to review in Meadow Admin.

Non-manager users can still view their own actions on the count after submitting
A manager can re-open a submitted count if more counting is needed
Submitted counts can only be finalized in Meadow Admin by managers

How to count in Meadow Admin

You can also run cycle counts directly from the Meadow Admin dashboard. This section is for managers and back-office staff.

1. Navigate to cycle counts: Go to Inventory > Cycle Counts in Meadow Admin.

2. Create or select a count

Click New Cycle Count to start a new count, or select an existing open count
Choose your inventory location

3. Add and count products

Add products by name, brand, or option
Scan items or enter quantities manually
Use the notes field to explain any issues you find (lost, damaged, miscounted, etc.)

4. Submit or save

You can leave a count open and come back to it later
When you're ready, submit the count for manager review

How to review a submitted count (managers)

Once a count is submitted, managers review the results in Meadow Admin before finalizing. This is where you catch problems and make corrections. If a count needs additional products or corrections, managers can re-open the count for further editing.

The four review tabs - Meadow gives you four tabs to review a submitted count:

My Actions tab — See all submitted counts and the actions taken. You can still add or adjust items here if needed.
Summary tab — Compare what was counted vs. what Meadow shows for each product. Sort by largest discrepancies to prioritize your review. This is your main tool for spotting problems.
Missing Products tab — This is one of the most important tabs in the review process. It shows every product in that inventory location that was not counted at all. These are often products that no longer exist on your shelves but are still in your system. Left unchecked, they create phantom inventory — which can lead to compliance violations. If your POS shows active stock for an item that isn't physically present, it could indicate an error, theft, or shrinkage. Always review this tab before finalizing.
Conflicts tab — Shows any inventory changes that happened after the count began — sales, transfers, purchase orders, or adjustments. Changes are listed chronologically so you can track what changed and when.

How to handle conflicts:

If you counted 10 units and then 1 sold, subtract that unit from your count
If the sale happened first and you counted the correct number afterward, you can ignore the conflict
All conflicts must be resolved before you can finalize the count

Tip: If a product was double-counted or entered incorrectly, don't delete the action. Instead, add a new action to correct it to the right quantity. This keeps your history intact and makes it easier to audit later.

How to finalize a cycle count (managers)

Finalizing is the last step. It locks in the count and updates your inventory. This step cannot be undone, so make sure everything is right before you proceed.

Before you finalize, check these boxes:

Investigate large discrepancies. Look into any major differences between expected and counted quantities. Don't just accept them — these could indicate theft, misplaced stock, or selling from the wrong batch.
Check all inventory locations. Some discrepancies are simply products in the wrong spot. A product "missing" from the vault might be sitting on the sales floor.
Select a Metrc adjustment reason. This is required for every change (e.g., undersold, oversold, incorrect quantity). You can apply the same reason to all line items if it fits.
Add notes where needed. Notes are reported to Metrc as required, so be clear and accurate.

What happens when you finalize:

Inventory quantities update to match the finalized count
Changes are locked — no further edits or adjustments can be made
Adjustments are synced to Metrc automatically — you don't need to update Metrc separately
Adjustments only apply to the specific inventory location where the count took place. Other locations are not affected.

If you need to make corrections after finalizing, you'll need to start a new cycle count or reconcile discrepancies for individual items.

Important: This step cannot be undone. Ensure all counts are thoroughly reviewed before finalizing. Once a cycle count is finalized, no further edits or adjustments can be made.

Why cycle counts matter

If you're wondering why your team should count inventory regularly, here's the short answer: it keeps you compliant, accurate, and protected.

Compliance. The DCC requires a full inventory count every 30 days, and California requires dispensaries to maintain no more than a 5% inventory discrepancy. DCC auditors will ask to see your cycle count history — if you don't have records, you risk fines and compliance issues.
Accuracy. Regular counts catch discrepancies early — before they snowball into bigger problems. Without accurate records, you could unknowingly sell from the wrong Metrc batch or have recalled products still showing as "in stock." In California, fines for selling recalled products can reach $10,000 per unit sold — that adds up fast.
Loss prevention. Missing or unaccounted products tell you where shrinkage is happening so you can stop it. The majority of dispensary losses come from internal discrepancies — misplaced inventory, unauthorized adjustments, and employee theft — not external theft.
Fraud prevention. Blind cycle counts prevent anyone from covering up inventory discrepancies. When staff count independently without seeing expected quantities, the numbers can't be fudged.

What can go wrong without regular counts

Here's a real scenario: A dispensary receives a recall notice for a product they no longer have on shelves. But because staff had been selling from the wrong package, their POS and Metrc still show 10 active units of the recalled batch. Despite customers receiving a safe product, the recorded sale violates compliance regulations — triggering fines of up to $100,000.

Regular cycle counts and accurate package tracking prevent exactly this kind of mistake.

The right way to count: blind counts

Not all counting methods are created equal. Here's how they compare:

Method	How it works	Verdict
Print a list with expected quantities	Staff checks off what they see against expected numbers	Easy to fake accuracy. Discrepancies go unnoticed.
Print a list without expected quantities	Staff writes down what they count, then you compare	Better, but won't catch items on the shelf that are missing from the list.
Blind count using Meadow	Staff counts what's actually there. Meadow totals everything and the Missing Products tab shows what was skipped.	Most accurate. Nothing gets missed or left in your system by accident.

We recommend blind counts every time. Your team counts what's physically there — not what they expect to find. Meadow handles the comparison automatically, and the Missing Products tab catches anything that was skipped entirely. This is the method that keeps you compliant and honest.

Tip: Divide your inventory area into sections and assign each section to a team member. For example, if your location is "Retail Floor," each employee counts a designated section. This keeps counts fast and organized.

Cycle counts and inventory locations

Cycle counts are always tied to a specific inventory location. When you start a count, you select which location you're counting — and the count only updates quantities for that location.

This means:

A count in the vault won't change quantities on the sales floor
A count on the retail floor won't affect your delivery inventory
You should run separate counts for each location

If you're using multiple inventory locations, make sure your team knows which location they're counting. Products in the wrong spot are one of the most common causes of discrepancies.

For more on setting up and managing inventory locations, transfers, and sales channels, see How do I manage multiple Inventory Locations?

Planning your counts

The most effective approach is to count by category or brand, rotating through them systematically so that over the course of a month, you've completed a full inventory count. This keeps you compliant with DCC regulations while reducing the risk of unnoticed discrepancies — all without shutting down operations.

For example:

Week 1: Flower
Week 2: Edibles + Beverages
Week 3: Concentrates + Vapes
Week 4: Pre-rolls + Accessories

Tip: Perform smaller, more frequent cycle counts instead of one massive monthly count. It takes less labor, catches problems faster, and keeps your team sharp.

Best practices

These tips come from dispensaries that run clean, efficient counts:

Always use blind counts. Let Meadow do the comparison. Your staff should count what's there, not verify a list. This ensures accuracy and accountability.
Scan, don't just eyeball. Use barcode scanning to count products. This ensures you're associating the right Metrc batch with each unit — preventing the kind of package mix-ups that trigger compliance violations.
Run separate counts for each location. Don't try to count the vault and the sales floor in the same count. Keep them isolated for accurate records.
Don't delete actions — add corrective ones. If someone entered the wrong quantity, add a new action with the correct number instead of deleting the original. This preserves your audit trail.
Resolve all conflicts before finalizing. Every conflict needs to be addressed. No exceptions.
Review the Missing Products tab every time. Products that nobody counted are the biggest compliance risk. Don't skip this step.
Address discrepancies immediately. Whether it's a broken jar, a customer return, or damaged product — adjust inventory right away. Small changes pile up fast when ignored, and they become much harder to untangle later.
Leave counts open if you're unsure. If something doesn't add up, don't force it. Leave the count open, investigate, and come back.

Common questions

Can I leave a cycle count open and come back later?

Yes, you can leave a cycle count open and come back later. Continue where you left off. Just keep in mind that any inventory changes (sales, transfers) made while the count is open may create conflicts you'll need to resolve before finalizing.

What about inactive products in cycle counts?

Inactive products won't show up in iPad cycle counts. If you need to include inactive products in a cycle count, add them from Meadow Admin.

Can multiple people work on the same cycle count?

Yes, multiple team members can contribute to the same open cycle count. When the count is submitted, it shows the combined totals from all contributors.

What if I made a mistake after finalizing a cycle count?

Once a cycle count is finalized, it's locked and cannot be edited. To correct discrepancies after finalizing, start a new cycle count or reconcile the specific items that need fixing.

What happens if inventory changes during my cycle count?

Any inventory changes (sales, transfers, adjustments) that happen while your cycle count is open will show up in the Conflicts tab during review. You'll need to resolve each conflict — either adjust your count to reflect the change, or confirm your count was already accurate.

Do I need to count everything at once?

No, you do not need to count everything at once. You can count by category, by section, or however makes sense for your operation. Smaller, more frequent counts are actually more effective than one big monthly count.

Does my cycle count sync with Metrc?

Yes, your cycle count syncs with Metrc. When you finalize a cycle count, adjustments are reported to Metrc automatically. You select a Metrc adjustment reason for each change, and notes you add are included in the Metrc report. You don't need to update Metrc separately.

How do I make sure I'm counting the right Metrc batch?

To make sure you're counting the right Metrc batch, use barcode scanning. When you scan a product, Meadow associates it with the correct Metrc package and batch number. This prevents the kind of package mix-ups that can lead to compliance violations — especially during recalls.

Where do I find cycle counts in Meadow?

You can find cycle counts in Meadow in three places: