Cost Calculation in Procuring Pharmaceuticals and Consumables - hmislk/hmis GitHub Wiki

Cost Calculation in Procuring Pharmaceuticals and Consumables

Purchase Structure

In the procurement of pharmaceuticals and consumables, cost calculation is critical to ensure accuracy and transparency in financial management. The following structure outlines the process:

Bill

Each purchase is documented in a bill containing multiple bill items. Each bill item corresponds to an individual item or pack.

Bill Items

Each bill item consists of:

  • Item: The individual item (AMP) or pack (AMPP)
  • Quantity (Qty): The total number of units purchased
  • Purchase Rate (PR): The rate at which the item is purchased
  • Cost Rate: The calculated cost per unit
  • Free Quantity: Additional units provided at no charge
  • Retail Rate (RSR): The price at which the item is sold to retail customers
  • Wholesale Rate: The price for wholesale transactions
  • Purchase Gross Value: Computed as PR × Qty
  • Line Discount: Discount applicable to the specific line item
  • Bill Discount for Line: Proportion of the total bill discount applicable to the line item
  • Bill Tax for Line: Proportion of the bill tax applicable to the line item
  • Line Tax: Tax applied specifically to the item line
  • Total Discount: Summation of all applicable discounts
Rate Breakdown
  • Line Discount Rate: Discount applied at the line level
  • Line Tax Rate: Tax rate for the line item
  • Bill Tax Rate for Line: Tax rate applied to the total bill that affects the line item
  • Bill Discount Rate for Line: Proportion of the total bill discount affecting the line item

Purchase Net Value

The net value of the purchase is calculated as: Purchase Net Value = (PR - (Line Discount Rate + Bill Discount Rate for Line)) × Qty

Example Calculation

AMP: Zaart 50

  • Quantity: 1000 units
  • Free Quantity: 100 units
  • Purchase Rate (PR): 10
  • Retail Sale Rate (RSR): 12.50
  • Purchase Cost: 1000 × 10 = 10,000
  • Cost Rate: 10,000 / 1100

Post-Purchase Considerations

Stock Management

  • No differentiation is made between purchased and free quantity.
  • Purchase Value Calculation: Purchase Rate × Qty
  • Retail Sale Value Calculation: Retail Rate × Qty

Stock Valuation Issue

If stock quantity is 1100, the purchase value calculated by stock * PR: 1100 × 10 = 11,000 (Incorrect Calculation)

Ideal Purchase Value Calculation: Stock × Cost Rate

Back

Cost Calculation in Procuring Pharmaceuticals and Consumables

Purchase Bill Bill Items Item (Individual Item - AMP / Pack - AMPP ) Qty Purchase Rate Cost Rate Free Qty Retail Rate Wholesale Rate Purchase Gross Value (PR X qty) Line Discount Bill Discount for Line Bill Tax for Line Line Tax Total Discount

                 Line Discount Rate
                 Line Tax Rate 
                 Bill Tax Rate for Line
                 Bill Discount Rate for Line
                
                 Purchase Net Value = (PR - (Line Discount Rate + Bill Discount Rate for Line)) * Qty

Ex. AMP Zaart 50 > Qty 1000, Free Qty 100, PR - 10, RSR - 12.50 - Purchase Cost - 10,000, Cost Rare (10,000 / 1100)

After Purchase Stock (No differentiation of qty and free qty) Purchase Value - Purchase rate * Qty Retail Sale Value - Retail rate * Qty

Stock - 1100 Purchase Value when calculated by Qtock * PR - 1100 * 10 = 11,000 > Wrong Ideal Purchase Value - Stock * Cost Rate