Operations
How to Read a Pharmaceutical Invoice — Complete Guide for Pharmacy Owners
Every field on a pharma distributor invoice explained — PTR, PTS, batch, HSN, GST, bonus, scheme — so you never pay the wrong amount or miss a discrepancy.
A pharmaceutical distributor invoice contains significantly more information than a standard commercial invoice. Understanding every field is critical to running a profitable pharmacy — because errors and discrepancies in invoices directly affect your purchase cost, GST claims, and inventory records.
A Typical Pharma Invoice — Field by Field
| Field | What It Means |
|---|---|
| Invoice Date / Invoice No. | Date and unique number for GST and record keeping |
| Supplier GSTIN | Supplier's GST number — needed for your ITC claim |
| Medicine Name | Full name including strength and formulation (e.g., "Metformin 500mg Tabs") |
| Pack Size | Number of units per pack (10 tablets = 1 strip typically) |
| MRP | Maximum Retail Price per pack — what you can charge customers maximum |
| PTS (Price to Stockist) | What the stockist/super-distributor pays the company |
| PTR (Price to Retailer) | What you (retailer) pay — this is your purchase cost |
| Batch No. | Manufacturing batch — critical for recalls and quality tracking |
| Mfg Date / Exp Date | Manufacturing and expiry date — verify before accepting stock |
| HSN Code | Harmonised System Nomenclature code — determines GST rate |
| GST Rate / Amount | GST percentage and rupee amount on this line item |
| Scheme / Bonus | Free strips or discount offered by company on this item |
| CD (Cash Discount) | Additional discount for early payment — e.g., "2% CD/30 days" |
Understanding Your Margin from an Invoice
Your retail margin is calculated as:
Margin % = (MRP − PTR) ÷ MRP × 100
Example: MRP ₹100, PTR ₹80 → Margin = (100−80)/100 = 20%
Common Invoice Discrepancies to Watch For
- Short delivery: Invoice says 10 boxes, delivery contains 9 — count physically before signing
- Wrong batch delivered: Invoice batch number doesn't match what's in the delivery
- Short expiry stock: You're being supplied stock with less than 6 months expiry — negotiate a credit or return
- Scheme not applied: Company is running a "buy 10 get 1" scheme but your invoice shows 10 only — raise it with the distributor
- GST rate mismatch: Invoice shows 12% but correct rate is 5% for this HSN — affects your ITC claim
PharmaStok AI Reads Pharma Invoices Automatically
Upload any invoice image or PDF and PharmaStok AI extracts every field — medicine name, batch, expiry, MRP, PTR — into your inventory. No manual entry.
Start Free →What is the difference between PTR and PTS on a pharma invoice?
PTS (Price to Stockist) is what the distributor/stockist pays the pharma company. PTR (Price to Retailer) is what the retail pharmacy pays the distributor. The distributor's margin is PTS to PTR. Your retail margin is PTR to MRP. Most pharma company print lists show PTR — the actual amount on your invoice should match or be close to the official PTR.
How do I handle a wrong GST rate on a supplier invoice?
Request a revised invoice or credit note from the supplier before claiming ITC. Filing ITC on an invoice with a wrong GST rate can lead to mismatches in GSTR-2B reconciliation and potential GST notice. Do not accept or process incorrect invoices — insist on a correction.