Pharmaceutical and biotechnology companies use PTR (Price to Retailer) and PTS (Price to the Stockist) to help calculate contract terms, product costs, and other financial terms related to the manufacture and commercialization of medicines. In order to maintain proper financial records of the company, proper accounting records need to be maintained. The pharmaceutical industry is beginning to grow at a rapid pace, resulting in the need for accounting records to be maintained. In fact, accounting is now recognized as one of the most critical components of the pharmaceutical area of science.
What is Price to Stockist or PTS?
Pharmaceutical companies use PTS (Price to Stockist) to indicate the price of a particular product to stockists and distributors. The PTS includes the GST that must be paid by the stockist to the central government. The company’s sales are generally calculated by using the PTS for a particular product.
Sales of a product = PTS * Quantity of product sold from a stockist.
What is Price to Retailer or PTR? A PTR is a general term commonly used by companies to indicate the price of products offered to retailers. It is inclusive of GST (Goods and Service Tax by Company or Stockist). PTR should not be confused with MRP (Maximum Retail Price).
With the introduction of GST, Pharma Retailers and Pharma Stockists have changed their rate calculations. The following formula will give you a general idea of how to calculate retailer and stockist margins. Here PTR means Price to Retailer and PTS means Price to the stockist. Also, you can calculate the net scheme.