Serving Tank Best Practice by Scenario
Serving tanks are a common thing in the Brewing industry, since most breweries have their own Taproom, and almost all breweries have a “Flagship” that is the bulk of their business.
Scenario 1: Serving tank only (Best Practice)
In this example, a brewery has 1 or more brite tanks that act as a serving tank only. This means, they produce beer into it and pour all of it through the draft lines of their Taproom – never package off of the tank.
- This tank/warehouse can be called whatever they want, but it is best for the Warehouse code to start with something like ST01 instead of BT01, just so everyone knows this is the Serving tank.
- Since none of this liquid will be packaged and sold to a distributor/customer, this tank/warehouse can be flagged as Tax-determined.
- The reason it is tax-determined is because once the liquid gets to this warehouse, the next place it will go is into the hands of customers. Just like when you sell cases or kegs to a distributor and those finished goods are taxed at that point.
- Sometimes a customer may decide to package off the last few BBLs into kegs, so that they can get the tank ready to refill with another batch of beer. This is totally fine so long as those kegs are only used to pour in the taproom and not sold to a customer/distributor.
Scenario 2: Packaging off of a serving tank
In this example, once the brite tank is filled, the production team will package off a few kegs/cases for sale before pouring the rest in their taproom.
- Here we will need to make a 2nd warehouse for each brite tank that is also going to be a serving tank.
- If you are going to package off of it, you want the finished goods to be packaged from a non tax-determined warehouse.
- If you packaged off of a tax-determined Serving tank, then the beer would be taxed twice: once at the time it is transferred to that tank, and once at the time the finished goods are sold to a distributor or customer.
- Therefore, if they decide to package kegs off of this tank sometime after they have already been serving from it in the taproom, they will need to transfer the beer from the serving tank (ST01) to the brite tank (BT01), even though the liquid is not actually changing warehouses.
- Ideally, at the end of the production run when they express brite beer to warehouse BT01, they will package off what they need, then transfer the rest to ST01 to be poured in the Taproom.