Inventory Aging Credits

Some products just sit — and clearing them out comes straight out of your margin. Aging credit is how the vendor shares that hit on slow-moving wholesale product. Let's see how it's calculated.

Some products just don't move. They sit on your shelf for weeks, and eventually you mark them down to clear the space. That markdown comes straight out of your margin. But here's the fair part — on product you bought wholesale, the vendor can share that aging hit with you. Aging credit is how you collect their piece of it, right here, every month when you run credit recovery.

So how does this work? First, where it applies. Aging credit is for product you bought wholesale — outright. On consignment, the vendor already shares every discount through their split, so there's nothing extra to collect. But on wholesale, when a package sits past its category's aging threshold and then sells below its normal price, the vendor covers an agreed share of that markdown — even without a specific promo the two of you set up. It lands right on their monthly credit memo.

Every category has its own aging clock. Flower, pre-rolls, and concentrates age fast — sixty days. Vapes, edibles, and everything else get longer — a hundred and twenty. And you're not locked into those numbers. You can set your own threshold on a single product, on a whole vendor, or on a category. The most specific rule always wins — a product-level rule beats a vendor rule, a vendor rule beats a category rule, and a category rule beats your default.

But sitting too long isn't enough on its own — the sale also has to come in below keystone. Keystone is just the product's normal price, the one that hits your target margin. You set that margin right here. It's cost divided by one minus the margin — so at fifty percent, keystone is simply twice what the product cost you. If an aged package still sold at or above that, there's nothing to share. Only when it drops below does the vendor pitch in.

The math follows the product's own history. Take the day the package arrived and count to the day it sold — that's how long it sat on your shelf. If that's past its category's threshold, and it rang up below keystone, the sale qualifies. Then we measure how far below keystone it landed — that gap is the shortfall — and multiply by the aging rate you set. That's the vendor's credit. Every date and every dollar comes straight from your own Metrc and sales data.

Now the guardrail that keeps this fair. If an aged product sold at a markdown because you discounted it — a loyalty reward, employee pricing, a POS sale you ran on your own — that sale is excluded, every single time. Aging credit only covers the natural markdown of product that simply sat too long. A vendor never funds your own discount programs. That's the line that keeps the number defensible.

And the share itself — how much of each aging markdown the vendor covers — lives right here, set per vendor, however the two of you agreed. That's aging credit: when product sits too long and finally sells below its normal price, the vendor carries their piece of the markdown, backed entirely by your own dates and numbers, month after month.