Taxes (US): US dispensaries: Navigating your financial reports for tax purposes

Practitioners

This article is intended for those who are not eligible for Form 1099-K. To see if you qualify for a 1099-K, please see US dispensaries: Reporting your income with form 1099-K.

 

In this article: 

Accessing your financial reports
Account activity and balance report summary
Calculating net sales, cost of goods, and net income
Sales tax
Frequently Asked Questions 

 

Note: This content is intended for general informational purposes only and should not be construed or relied upon as tax, legal or financial advice, or applicable to your particular situation. You should consult with your own tax advisor regarding your tax obligations. The views expressed in any of these resources do not represent the views and are not affiliated with or endorsed by Fullscript in any way.

 

Accessing your financial reports

To assist in your financial record keeping, reports can be viewed and exported from your account. These reports, available after your first successful payout, record payout history and sales activity can be used to calculate Fullscript earnings through your account.

To access these reports, select Reports from the practitioner menu. 

Accessing practitioner Reports within your account.

 

Account activity and balance report summary

The Account activity and balance report lists transactions within the selected time period, breaking down information such as net sales, cost of sales, and your net income.

A summary of values required for tax purposes can be accessed quickly from the Account activity and balance report by selecting the desired reporting year from the drop-down menu shown below.

Account activity and balance report summary for the 2019 tax year. 

Note: This report was updated in 2020 to improve accuracy and general navigation resulting in two versions of this report: historical and current (2020 and later). We did not overwrite previous years to avoid potential discrepancies in customer records. Learn more.

 

Calculating net sales, cost of goods, and net income

Gross sales, Cost of Sales, and Net Income transacted through your Fullscript account are calculated and displayed in the account activity and balance report summary after selecting a tax year (see example above).

The steps and example below will walk you through how to export this report and understand how these figures are calculated.

 

Step 1: Download the Account activity and balance report

To download the account activity and balance report:

1. Select your name or avatar to open the practitioner menu, then click Reports. On mobile devices, select the menu icon (  ), followed by your name or avatar, then tap Reports.
2. Scroll to the Account Activity and Balance Report heading.
3. Select a year.
4. Click Excel to download a formatted .xslx file to your device. Or, select CSV for an unformatted comma-separated values file.

 In our example below, we will be looking into the 2019 tax year.

Account activity and balance report summary for the 2019 tax year.

 

The excel export will resemble the example below. 

Sample Excel (.xlsx) export of the Account activity and balance report.

 

Column definitions

Column	Definition
transaction_number	The shipment ID.
transaction_type	Type of record displayed. e.g., payout, refund, or shipment.
transaction_status	The record's status. e.g., amounts paid (payouts), shipped (orders), or received (refunds).
order_number	Fullscript order number.
transaction_date	The date the shipment was shipped, the refund was received, or the payout was deposited.
msrp_total	Total MSRP (manufacturer suggested retail price) in the shipment.
sales_total	Represents the total retail cost and is calculated as the MSRP total less the patient discount.
patient_discount	The discount amount ($) applied to the order (i.e., patient savings in dollars).
cogs_total	Fullscript fees representing product cost and fees associated with administering the transaction. Referred to as cost of sales or cost of goods sold (COGS).
total	Represents net earnings from the transaction and is calculated as sales_total less cogs_total. Note: This column is labeled 'amount' in a previous version of this report (years 2019 and earlier).
balance	Running balance of funds available for payout.

All terms and definitions in the table above pertain to Fullscript activity only.

 

Step 2: Calculating Fullscript net sales

Net sales represent the total retail value of orders transacted through the account. For this, we sum up the values in the sales_total column. In this example, we see a total of $46,088.68.

 

Step 3: Calculating Fullscript cost of sales

Cost of Sales represents the costs incurred to complete sales transacted through the account. For this, we sum up the values in the cogs_total column. In this example, we see a total of $36,451.69.

 

Step 4: Calculating Fullscript net income

Net Income represents total earnings and is calculated by deducting Cost of Sales (Column D) from Net Sales (Column B). In this example, we find a Net Income of $9,636.99.

An example of the Account activity and balance report with Net Sales, Cost of Sales, and Net Income calculated.

 

Step 5: Report these values as needed to complete your tax obligations.

Our Customer Success team members are unable to provide tax advice or guidance. Please get in touch with an accountant or tax professional if you're uncertain of your tax obligations or how to complete them.

 

Sales tax

Fullscript collects and remits applicable sales tax to the state for you, so you have one less thing to worry about.

Note: Fullscript is committed to collecting and remitting sales tax at the state level, but we don’t currently collect or remit sales tax for home rule jurisdictions with self-administered local taxing authorities (cities, counties, or special tax jurisdictions) that have chosen to collect and administer sales or use tax independently from the state. 

 

Frequently Asked Questions

What do I need to share with my tax professional to complete my taxes?

✔ Account Activity & Balance Report (for applicable tax year)

 

Why didn't I receive a 1099-K?

Only dispensaries that have satisfied their state's eligibility thresholds will be issued a 1099-K. We refer to the financial address on your account to determine eligibility.