Difference between revisions of "Accounting Finance:Rebate Process"
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Rebates generated from the pharmaceutical generic formulary program referred to as the Class 010 Program (‘Program’). All generic molecules included in the Program are assigned a rebate percentage based on the professional allowance (‘PA’) percentage received from the Program vendors for these generic molecules. |
Rebates generated from the pharmaceutical generic formulary program referred to as the Class 010 Program (‘Program’). All generic molecules included in the Program are assigned a rebate percentage based on the professional allowance (‘PA’) percentage received from the Program vendors for these generic molecules. |
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| − | Professional |
+ | The vendors Professional Allowance amount is based on a percentage applied to the cost of the molecule whereas the MPS paid to shareholders is a based on a percentage applied to the selling price of the molecule. For example; a molecule with a cost of $100, a professional allowance of 50% and a selling price $108, then uniPHARM receives a PA of $50 from the vendor and pays a MPS at 45.00% based on selling price or $48.60. These percentages are set-up as CURE – 45.00% and VERE – 50.00%. |
| − | CURE – customer rebate percentage, vendor PA % less the ‘tens’ digit; e.g. 50% - 5% = 45% |
+ | CURE – customer rebate percentage, calculated as the vendor PA % less the ‘tens’ digit; e.g. 50% - 5% = 45% |
| − | VERE – vendor rebate percentage, PA % as provided by the Class 010 vendor |
+ | VERE – vendor rebate percentage, is the PA % as provided by the Class 010 vendor |
| − | + | '''bold text''' Brand Pharmaceutical Rebate |
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The Rebate paid on brand pharmaceuticals with an eight percent (8%) up-charge. The rebate percentage plus the two percent (2%) cash discount nets the up-charge on these brand pharmaceuticals to either 3.25% if a store’s total brand pharmaceuticals sales are less than $1.0 million or 2.75% if greater than $1.0 million. Current rebate percentage is either 2.40% or 2.85% based on pharmaceutical sales. |
The Rebate paid on brand pharmaceuticals with an eight percent (8%) up-charge. The rebate percentage plus the two percent (2%) cash discount nets the up-charge on these brand pharmaceuticals to either 3.25% if a store’s total brand pharmaceuticals sales are less than $1.0 million or 2.75% if greater than $1.0 million. Current rebate percentage is either 2.40% or 2.85% based on pharmaceutical sales. |
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Revision as of 11:55, 30 August 2016
Monthly Profit Sharing (‘MPS’)
Rebates generated from the pharmaceutical generic formulary program referred to as the Class 010 Program (‘Program’). All generic molecules included in the Program are assigned a rebate percentage based on the professional allowance (‘PA’) percentage received from the Program vendors for these generic molecules.
The vendors Professional Allowance amount is based on a percentage applied to the cost of the molecule whereas the MPS paid to shareholders is a based on a percentage applied to the selling price of the molecule. For example; a molecule with a cost of $100, a professional allowance of 50% and a selling price $108, then uniPHARM receives a PA of $50 from the vendor and pays a MPS at 45.00% based on selling price or $48.60. These percentages are set-up as CURE – 45.00% and VERE – 50.00%.
CURE – customer rebate percentage, calculated as the vendor PA % less the ‘tens’ digit; e.g. 50% - 5% = 45% VERE – vendor rebate percentage, is the PA % as provided by the Class 010 vendor
bold text Brand Pharmaceutical Rebate The Rebate paid on brand pharmaceuticals with an eight percent (8%) up-charge. The rebate percentage plus the two percent (2%) cash discount nets the up-charge on these brand pharmaceuticals to either 3.25% if a store’s total brand pharmaceuticals sales are less than $1.0 million or 2.75% if greater than $1.0 million. Current rebate percentage is either 2.40% or 2.85% based on pharmaceutical sales.