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Monthly reporting basics


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I'm not yet in production, but I've been staring at a the TTB sight off and on for the last 3 days, and I think I finally have a basic grasp on things. I would be incredibly grateful if someone could validate that my understanding is correct, as I quickly explain a couple scenarios. I am still somewhat unsure if I know anything.

1) I am doing a few small batches for recipe development. Lets say they total 20 proof gallons. I would put that on line 12 (withdrawn for research, development, or testing) of the production report (5110.40), and that's it, it doesn't go on the storage or processing report.

2) Alternatively, I have some rum aging in barrels from a previous month. I pull 1 proof gallon out of the barrel to experiment on a spiced rum recipe. I would put that on line 16 (also research, development, or testing) but this time from the storage report (5110.11), as it is coming out of storage.

3) I make 30 proof gallons of whiskey under 160 proof and put it barrels for a year. On the production report (5110.40) I enter it into line 11 (entered into storage account) column b, and carry that over to line 14 and the correct section of Part 3. I also enter it into line 2 (deposited to bulk storage), and line 23 (on hand end of month) of the storage report (5110.40). In future months, this 30 proof gallons continues to get reported on line 23, until it is ready to be packaged.

4) A year later I am ready to package that whiskey. I filter it and proof it down for packaging, but now due to angels share and whatnot. I only have 29 proof gallons. On the storage report (5110.40) I enter 29g on line 17 (transferred to processing account), and 1g on line 22 (other losses). Then on the Processing report (5110.28) enter 29g on line 2 (received) column C (spirits).

I'm not entirely sure if those losses should actually be reported on line 24 of the processing report

5) Couple general things about the Processing report. Line 25 (on hand at the end of month) would be any spirits sitting, ready to be packaged, where as line 46 (also on hand at the end of month) would be packaged product that hasn't left the bonded area (not sold, moved to tasting room, or entered onto tax forms).

Line 24 (losses) would be losses before packaging, line 44 (recorded losses) would be losses during packaging, and line 45 (inventory shortages) would be losses after packaging such as broken/ stolen bottles or bottles given away as samples to clients or employees, and still get taxed.

I'm pretty unsure of any of what I said on #5.

I would appreciate any input. A simple yeah good job, you got it except this point or that, and you haven't wasted 20 hours of your life staring at a computer, or you're a bozo, get professional help, would be awesome. Thanks so much.

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9 hours ago, tndistilling said:

Get some software. Well worth it.


It certainly seems like it is. I've looked at Whiskey Solutions, and Hoochware. However, I'd like to save some money the first 6 months, while we figure out how much money will be coming in. I'd also like to have a firm grasp on the basics of reporting regardless, see the man behind the curtain if you will.

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So I sent this same ramble to the TTB and a couple of other people I hoped could help me. One of which was Shawn Patrick of Hoochware, who responded extremely quickly, and was incredibly helpful to me, despite me not yet even being one of his clients. Can't speak highly enough of the guy. Other than a few numbers I typed incorrectly, which I corrected on the OP, #1-4 were correct. Here's a bit of what he had to say on #5

" Line 25 is correct, it's for the On-hand end of month total for Bulk Spirits sitting in vessels waiting to be Processed (mix, blend, bottle, etc).  Line 46 is on-hand end of month of packaged (bottled) Finished Product.  Again, these totals for both lines (25 & 46) carry over to the next month.  Here is where I believe a misconception of losses can be reported incorrectly.  If you have a tank with 100 proof gallons and you bottle all of it except .75 proof gallons then this is recorded on Line #24 on the processing report (Part I).  Line 45 (Shortages) is for when you do your monthly inventory count of Finished Product (bottled) and you find a discrepancy.  Line #30 is for gains during inventory count"

Hopefully this will help someone, struggling as much as I was.

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