Cut Through the Cannabis Jargon

Navigating the cannabis industry isn’t always easy, but knowing the right terms makes all the difference.

Our comprehensive glossary breaks down key cannabis terms, industry abbreviations, and even Flourish-specific terminology—covering everything from A to Z, so you can stay informed, compliant, and ahead of the game.

A
Accounts Payable (A/P, AP) – Amounts a company owes to suppliers for goods or services received.

Accounts Receivable (A/R, AR) – Amounts owed to a company by customers for goods or services delivered.

Advertisement – Any publication, video, brand representative, or media meant to influence the purchase or use of a cannabis product.

Advertising – The process of disseminating advertisements in any manner or by any means.

Application Programming Interface (API) – A set of protocols and tools that allow
different software applications to communicate with each other.

Assigned – Items that are assigned or packed in bags for pickup or delivery orders; in Flourish, these items are also unlocked. Attractive to individuals under twenty-one – Labeling, packaging, advertising, or marketing that appeals to persons under 21 by using bright colors, cartoons, or imitating products like candy and soda.

Available – Items that are available for sale; in Flourish, they are referred to as unlocked.

B
Backorder – An order for a product that is temporarily out of stock, to be fulfilled when the product becomes available.

Batch – A specific quantity of cannabis product processed or manufactured at the same time, identified by a unique number for tracking purposes.

Bill of Materials (BOM) – A comprehensive list of raw materials, components, and instructions required to manufacture a product.

BioTrack – A state-mandated cannabis tracking system used to monitor the production and distribution of cannabis products.

Brand or Branding – Identifiable markers that distinguish a cannabis licensee’s products from others.

C
Cannabidiol (CBD) – A non-psychoactive cannabinoid known for therapeutic benefits.

Cannabidiolic Acid (CBDA) – The acidic precursor to CBD, which converts into CBD through heat exposure.

Cannabigerol (CBG) – A non-psychoactive cannabinoid with potential antibacterial and neuroprotective properties.

Cannabigerolic Acid (CBGA) – A precursor compound from which THC, CBD, and CBG are derived.

Cannabinoid – Chemical compounds in cannabis that interact with the endocannabinoid system.

Cannabinol (CBN) – A mildly psychoactive cannabinoid formed from degraded THC, known for sedative effects.

Certificate of Analysis (COA) – A certified lab report detailing the contents and purity of a cannabis product.

Chain of Custody – A documented process tracking cannabis handling and transfer.

Child-resistant – Packaging designed to be difficult for children under five to open but easy for adults.

Clone – A cutting from a cannabis plant to produce a genetically identical plant.

Concentrate – A potent cannabis extract like oil, wax, or shatter.

Cost of Goods Sold (COGS) – Direct costs attributable to the production of goods sold.

Cultivation – The process of growing cannabis plants.

Customer Relationship Management (CRM) – A system for managing interactions with customers.

D
Date of Expiration – The date before which a cannabis product meets potency and quality standards.

Destinations – Entities such as customers or locations to which products are distributed; managed within Flourish to streamline distribution processes.

Distribution – Module in Flourish to optimize the process of transporting cannabis products from manufacturers to retailers or consumers.

E
E-commerce Active – A setting in Flourish that enables an item to sync with e-commerce platforms like WooCommerce.

Edible – A cannabis product intended for ingestion.

Enterprise Resource Planning (ERP) – Integrated management software that helps organizations manage business processes, including inventory, compliance, and reporting.

Exit Package – A receptacle for cannabis products at the retail point of sale.

Extraction – The process of removing cannabinoids and terpenes from cannabis plant material to create concentrates.

F
Facility – A licensed location where specific cannabis operations, such as cultivation or
processing, are conducted.

Financial Planning and Analysis (FP&A) - A business function focused on budgeting, forecasting, and financial decision-making to support strategic goals.

Flower – The blooming part of the female cannabis plant that is harvested and consumed for its cannabinoid content.

G
General Ledger (GL) – A complete record of all financial transactions over the life of a company.

Good Manufacturing Practice (GMP) – Regulations that require manufacturers to ensure products are consistently produced and controlled according to quality standards.

H
Harvest – The process of collecting mature cannabis plants or flowers for processing and sale.

Health Claim – Any claim implying a cannabis product benefits health or treats conditions.

I
Immature Plant – A young cannabis plant that has not yet reached the flowering stage.

Inventory Management – The process of ordering, storing, and using a company's inventory, including raw materials and finished products.

Item Master – A comprehensive list of all items within Flourish across a company's instance.

Item Name – The designated name of a product; best practice involves using clear, consistent naming conventions for accurate tracking.

J
Just-In-Time Inventory (JIT) – An inventory strategy where materials and products are received just before they are needed to reduce storage costs.

K
Key Performance Indicators (KPI) – Measurable values that indicate how effectively a business is achieving its objectives.

L
Lab Sample - A portion of a cannabis batch taken for laboratory testing to ensure potency, purity, and compliance with regulatory standards.

Labels - Placed on plants and packages depending on state requirements.

Locked – Items that are not available for sale; in Flourish, they are referred to as locked.

Licensee – An individual or entity granted a cannabis business license.

Lot (Same as Batch) - A specific quantity of cannabis product processed or manufactured simultaneously, identified by a unique number for tracking purposes.

M
Manifest -List of products being transported and delivered from one location to another.

Manufacturing – Module in Flourish to maximize the process of transforming raw cannabis materials into finished products, such as edibles, oils, or tinctures.

Manufacturing Run - A production process where raw cannabis materials are converted into finished products, such as edibles, tinctures, or extracts.

Marketing – Identifying and addressing consumer needs through advertisements

Marketing Layer - Packaging in addition to the retail packaging that is the outermost layer visible to the consumer at the point of sale. Note: Marketing Layer is optional, but if used it
must comply with all adult-use labeling requirements.

Metric – A standard of measurement used to assess various aspects of business performance.

Metrc -  A state-mandated cannabis tracking system used to monitor the production and distribution of cannabis products with Radio Frequency Identification (RFID) tags.

Microbusiness – A small-scale cannabis business that is licensed to cultivate, manufacture, and sell cannabis products.

Mother Plant – A cannabis plant kept in the vegetative stage to provide cuttings or clones for propagation.

N
Non-Cannabis Inventory – Any inventory item that does not contain cannabis, such as packaging materials, labels, or accessories.

Non-Consumer Package – Packaging for wholesale distribution, not final retail sale.

Nutrient – Substances providing essential vitamins and minerals to cannabis plants to promote healthy growth.

O
Outbound Inventory – Products that are scheduled to leave a facility for sale, transfer, or distribution.

Order Fulfillment – The process of picking, packing, and shipping orders to customers or other businesses.

P

Package ID – A unique identifier assigned to each cannabis package for tracking purposes within Flourish.

Payment Terms – Agreed-upon conditions between buyer and seller regarding payment timelines, such as Net 30 or Cash on Delivery (COD).

Phytocannabinoids – Active cannabis compounds like THC and CBD.

Plant Batch - A group of cannabis plants grown together under similar conditions and
tracked for compliance and quality control.

Point of Sale (POS) –Module in Flourish where sales transactions occur, often involving hardware and software to process cannabis sales at a retail location, i.e. dispensary.

Processing – The conversion of raw cannabis material into products such as concentrates, edibles, or tinctures.

Propagation – The process of growing new cannabis plants from seeds or clones.

Purchase Order (PO) – A document issued by a buyer to a supplier indicating types, quantities, and prices for products.

Q

Quality Control (QC) – A process to ensure products meet regulatory and company standards before being sold.

R

Recall – The process of removing non-compliant or defective cannabis products from distribution or sale.

Receiving – The process of verifying and recording incoming shipments of inventory.

Resealable – Packaging that maintains child-resistant effectiveness after opening.

Retail Package – The final consumer-facing cannabis packaging.

S

Sales and Operations Planning (S&OP) - A business process that aligns sales, production, and inventory planning to meet customer demand while optimizing efficiency.

Seed-to-Sale – A system of tracking cannabis products throughout the entire supply chain, from cultivation to final sale.

Shrinkage – The loss of inventory due to theft, damage, or administrative error.

Strain – A specific variety of cannabis plant bred for particular characteristics, such as flavor or cannabinoid profile.

Supplier – A vendor that provides raw materials, products, or packaging to a cannabis business.

T

Tamper-evident – Packaging that shows if tampered with.

Terpenes – Aromatic compounds found in cannabis and many other plants that contribute to their scent and flavor. In cannabis, terpenes also interact with cannabinoids to produce various effects, a phenomenon known as the entourage effect.  Common terpenes include myrcene, limonene, pinene, and linalool, each with distinct aromas and potential therapeutic benefits.

Testing – The process of analyzing cannabis products for potency, contaminants, and quality assurance.

Tetrahydrocannabinol (THC) – The primary psychoactive compound found in cannabis responsible for the 'high' sensation.

Tincture – A liquid cannabis extract, typically made with alcohol, consumed orally.

Topical – Cannabis-infused products applied to the skin, such as lotions or balms, for localized relief.

Track-and-Trace – Systems used to monitor and record the movement of cannabis products through the supply chain to ensure compliance and safety.

Trichome – Microscopic, hair-like structures on cannabis flowers that produce cannabinoids and terpenes.

Trim – The process of removing excess leaves and stems from cannabis buds after harvest to improve appearance and potency.

Transfer – The movement of cannabis products from one licensed facility to another.

Transporter - A licensed entity responsible for moving cannabis products between facilities, dispensaries, or consumers. (and a great Jason Statham movie)

U

Unit of Measure (UOM) – The standard measurement used for tracking cannabis products, such as grams, ounces, or milliliters.

Universal Symbol – A label indicating a product contains cannabis.

User Roles – Assigned roles within Flourish that define permissions and access levels for employees.

V

Vendor – A company or individual that supplies products or services to a cannabis business.

Vegetative Stage – The growth phase of the cannabis plant where it develops leaves and stems but not flowers.

W

Wholesale, Business-to-Business (B2B)– The sale of cannabis products in large quantities, typically to retailers or dispensaries, rather than to end consumers.

Y

Yield – The total amount of usable cannabis produced from a harvest.

Z

Zeroed Inventory – Inventory that has been completely depleted and is no longer available for sale or distribution.