Here's a quick overview
Go to Inventory > Reconciliations > New (or start from a product page or package details)
Select the product and inventory location
Enter the quantity to add or subtract
Select the Metrc package and choose an adjustment reason
Add notes and click Create Reconciliation — Meadow syncs to Metrc right away
When to use a reconciliation
Reconciliations fix the gap between what your system says and what's actually there. Here's when to reach for one:
Use a reconciliation when:
You need to remove damaged, spoiled, or expired product
A display sample needs to be taken off the books
A trade sample needs to be removed (can't be sold — reconcile it out)
Accessories or non-Metrc products need a quantity adjustment
A small quantity difference showed up between what you received and what Metrc says. (If you notice a discrepancy when receiving the product, you can use an initial inventory adjustment to correct it.)
Don't use a reconciliation when:
The discrepancy is large — send an outgoing transfer back to the distributor instead. Outgoing transfers don't add to your variance.
You haven't received the package yet — use Adjust Initial Amount on the Ready package in the Metrc tab. It's cleaner to fix the quantity before it enters inventory.
You need to fix a wrong product match — void the package with Recreate as Ready, then re-receive it under the correct product on a purchase order.
You mistakenly adjusted a package directly in Metrc. If you adjust a package amount in Metrc, that does not report to Meadow, and it will create a discrepancy between the two systems. To resolve this issue, void the package and set recreate as ready to yes. That will refresh the package quantity in Meadow. If you reconcile, you will worsen the discrepancy.
Tip: Not sure which approach to use? Ask Meadow Support before making the adjustment. The wrong method can create compliance headaches that are harder to fix later.
Real-world examples
Not sure if your situation calls for a reconciliation? Here are common scenarios:
Lost delivery product — A driver loses a package during a delivery run. Reconcile the lost units out of your delivery inventory.
Damaged product — A jar breaks during shelf restock. Reconcile it out with "Spoilage" as the adjustment reason.
Inventory miscount — Two products were stuck together during a cycle count and counted as one. You can quickly reconcile the inventory so the quantity reflects the correct count. You don't need to open a whole new count to fix this error, simply make a quick reconciliation.
How to create a reconciliation
There are three ways to start a reconciliation in Meadow. Pick whichever fits your workflow:
From Inventory: Go to Inventory > Reconciliations > New and search for the product
From a product page: Open the product, click New Reconciliation — the product and pricing options pre-fill automatically
From package details: Open a package in the Metrc tab, click (⋮) > New Reconciliation — the package pre-fills automatically
All three end up at the same form. The product and package shortcuts save time when you already know what you're adjusting.
1. Select the product
Search for the product you need to adjust. The dropdown shows all active products with their current inventory quantities. If you started from a product page or package, this is already filled in.
3. Select the inventory location
Choose which location you're adjusting — sales floor, vault, delivery stock, or wherever the discrepancy exists. Reconciliations are location-specific. Adjusting the vault doesn't change the sales floor.
3. Enter the quantity change
Enter the number of units to add or subtract — not the final total you want in stock. Use a positive number to add units, negative to remove. For example, if 3 units were damaged, enter -3.
4. Select a Metrc package
For cannabis products, select the Metrc package you're adjusting. This ties the correction to the right compliance record.
Important: Can't find a package to select? The package might be finished. Go to the Finished packages tab, find the package, and click (⋮) > Unfinish Package. Then come back and create the reconciliation.
5. Choose a Metrc adjustment reason
Metrc requires a reason for every quantity change on cannabis products. These reasons are defined by the State of California — not Metrc — and depend on your license type.
Here are the most common reasons you'll see:
For accessories and non-compliant products, the reason doesn't matter — they're not reported to Metrc.
Important: Not sure which reason to pick? Ask Meadow Support before completing the adjustment. The wrong reason can flag your account with regulators.
7. Add notes
Notes are reported to Metrc along with the adjustment. Be clear and accurate — regulators may review these during an audit. Include what happened and why (e.g., "2 units damaged during shelf restock — glass jars cracked").
8. Submit
Click Create Reconciliation. The adjustment updates your Meadow inventory and syncs to Metrc right away. Meadow automatically records who created the reconciliation and the date — you don't need to track this separately.
Reconciliations and variance
Variance is the gap between what Metrc says you should have and what you actually have. Every reconciliation adds to your variance — whether you're reconciling units in or out.
Here's why that matters:
The DCC watches variance. High variance is a red flag for regulators. It can trigger audits, fines, or closer scrutiny of your operation.
Small reconciliations are fine. A unit here or there from damage, miscounts, or display samples is normal and expected.
Large reconciliations raise questions. If you're reconciling 50+ units at once, regulators want to know why. In most cases, an outgoing transfer is a better choice for large quantity corrections.
Tip: Run regular cycle counts to catch discrepancies early — before they pile up into a big reconciliation. Small, frequent corrections keep your variance low and your compliance clean. See the Cycle Counts guide for the full walkthrough.
Reconciliations for special situations
Trade samples — Trade samples can't be sold. To remove one from inventory, create a reconciliation with the adjustment reason Trade Sample. This zeroes out the package quantity and reports it correctly to Metrc.
Display samples — To record a display sample: receive the package from Metrc, create a PO and receive it in Meadow, then reconcile it out using the adjustment reason Display Sample.
Unfinished packages — When a package hits 0 units, Meadow finishes it automatically overnight. If you need to add inventory back to a finished package — say you found product that was miscounted — unfinish the package first, then reconcile to the correct quantity.
Accessories — Non-cannabis products use Compliance Status "No Tracking." You can reconcile accessories freely — the adjustment reason doesn't matter because accessories aren't reported to Metrc.
Reconciliations vs. cycle counts
Both tools correct inventory, but they work differently:
| Reconciliation | Cycle count |
What it does | Adjusts one product at a time | Counts everything in a location and category |
When to use | Quick fix for a known discrepancy | Systematic audit of all inventory |
Who uses it | Anyone with inventory access | Counted by staff, reviewed and finalized by managers |
Metrc sync | Immediate | On finalization |
Best for | Spot corrections — damage, theft, samples | Monthly compliance counts, full inventory audits |
In practice: Run cycle counts regularly to find problems. Use reconciliations to fix individual items between counts. They're complementary — not interchangeable.
Common questions
Does a reconciliation sync to Metrc automatically?
Yes — for cannabis products, the adjustment reports to Metrc right away. You don't need to log into Metrc separately. The adjustment reason and notes you entered are included in the Metrc report.
Can I undo a reconciliation?
No — reconciliations can't be reversed. If you made a mistake, create a new reconciliation in the opposite direction to correct it. For example, if you accidentally reconciled 5 units out, reconcile 5 units back in.
What if I can't find the package I need to reconcile?
The package is probably finished. Go to the Finished packages tab, find the package, and unfinish it first. Then create the reconciliation.
Should I use a reconciliation or an outgoing transfer for a large discrepancy?
Use an outgoing transfer. Reconciliations add to your shop's variance — the gap between what Metrc says and what you actually have. High variance is a red flag for regulators. Send the product back to the distributor in Metrc and ask them to resend a corrected package. This keeps your variance clean.
Do reconciliations work for accessories?
Yes — and they're simpler. Since accessories use "No Tracking" compliance status, you can pick any adjustment reason. The adjustment won't be reported to Metrc.
When should I reconcile vs. adjust initial amount?
Use Adjust Initial Amount when the package is still in "Ready" status — before you've created a PO or received it. It corrects the quantity before inventory intake, which is cleaner. Use a reconciliation after the package has already been received into inventory.
How do reconciliations relate to cycle counts?
Cycle counts are the audit — they find discrepancies by comparing physical inventory to system records. Reconciliations are the fix — they correct individual items. After finalizing a cycle count, you might reconcile specific products that need adjustments beyond what the count resolved. See the Cycle Counts guide for the full process.
Where do I create reconciliations in Meadow?
New reconciliation: Inventory > Reconciliations > New
View reconciliation history: Inventory > Reconciliations
Unfinish a package first: Metrc tab > Finished packages
Tip: Want to learn more about managing inventory in Meadow? Meadow Mastery has a free training course that covers reconciliations, cycle counts, and inventory best practices.