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Glossary

Adult-use (AU)

Cannabis sold to consumers 21+ under a state's recreational program, as opposed to medical sales to registered patients. Tax treatment, purchase limits and (since April 2026) federal 280E treatment differ by license type.

Why it matters for reconciliation: the tax fields and purchase limits recorded on a ticket depend on its class, so an adult-use ticket has to carry the right class all the way to the state receipt. A mismatch in the tax fields is often the first sign of a ticket rung under the wrong class.

Example: a store sells the same product to an adult-use customer and a registered patient. The two tickets are recorded on separate tax lines, because the state's rules differ for each sale type, so the books keep them apart.

Where this comes up on budally.com

  • Medical

    Cannabis sold to registered patients, caregivers or reciprocal-card holders under a state medical program. Often tax-exempt or tax-reduced at the register; since April 2026 federally Schedule III and outside 280E when state-licensed.

  • Dual-license

    An operator holding both medical and adult-use licenses at a premises. Since April 2026, federal guidance asks dual-license operators to separate medical and adult-use activity in operations and recordkeeping.

Terms that refer here

Medical