Pharmacy Batch and Expiry Tracking: A Guide for Chemists

A pharmacy should track every medicine by batch and expiry date, sell the earliest-expiring batch first (FEFO), review near-expiry stock before it becomes a loss, and claim expired stock back from the supplier where an agreement allows. Doing this by hand across hundreds of medicines is where most chemists lose money quietly.

Why a medicine needs a batch record

Two packs of the same tablet can carry different expiry dates, different purchase costs and different printed retail prices. If your stock record says only "Paracetamol 500 mg, 120 strips", it cannot tell the counter which strips to sell first, cannot tell you what is about to expire, and cannot tell you the real cost of what is on the shelf.

A batch record keeps, for each delivery of a medicine:

• The batch number and expiry date.
• The quantity on hand and the quantity received.
• The landed cost, so margin is calculated on what you actually paid.
• The printed MRP on that batch, since it can differ from the previous delivery.
• The movement history behind the quantity: received, sold, returned, written off.

First-expiry-first-out dispensing

Stores often talk about FIFO, selling the oldest purchase first. For medicines the better rule is FEFO: first expiry, first out. A newer delivery can carry an earlier expiry date than an older one, so the oldest purchase is not always the safest sale.

FEFO only works if the counter does it without thinking. If staff must look up batches by hand, they will pick whatever is at the front of the shelf. Software should select the earliest-expiring batch automatically, and it should never pick an expired batch at all.

Catching near-expiry stock early

The cheapest moment to deal with an expiring medicine is months before the date. A near-expiry report, by value, shows what is at risk while you can still act:

• Move it to the front of the counter or shelf so it sells first.
• Offer a discount that clears it for something rather than nothing.
• Return it or raise a claim with the supplier, if your terms allow.
• Reduce the next order for that medicine.

Rank the report by rupee value, not by count of items. One slow, expensive product matters more than twenty cheap ones.

Claiming expired stock from the supplier

Many distributors accept the return of near-expiry or expired stock under agreed terms, and credit the pharmacy afterwards. Practice differs between suppliers, so read your own agreement. The bookkeeping, however, follows the same pattern:

1. Identify the batches and quantities you are entitled to claim.
2. Raise the claim against that supplier, which makes it a receivable.
3. When the supplier issues a credit note, reconcile it against the claim.
4. Write off anything unclaimed to expense, so expired stock leaves your valuation.

Leaving expired stock in the valuation overstates your assets and profit. It is worth keeping the stock figure honest even when the news is bad.

Selling and recording prescription and controlled medicines is governed by drug regulators and your licence conditions. This guide is about stock and bookkeeping and is not legal advice. Follow the rules that apply to your premises.

How FlowForg handles it

FlowForg's pharmacy module runs the counter as point of sale in pharmacy mode, with batch-wise stock behind it:

• A medicine register with generic name, formula, strength and dosage form, plus the DRAP registration number and schedule class on every medicine.
• Batch stock with expiry date, landed cost and printed MRP per batch.
• First-expiry-first-out dispensing that never picks an expired batch.
• Batch movement history behind every on-hand quantity.
• Near-expiry and expired stock reporting by value.
• Expiry claims raised against a supplier and reconciled to credit notes.
• Expired stock written off to expense rather than left in valuation.

See also the general accounting software versus ERP guide if you are weighing a full system for the first time, and pricing for how a workspace is billed.

Common questions

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