Monthly Pharmacy Stock and Expiry Audit Checklist

A monthly stock and expiry audit takes a few hours, and it is the cheapest loss prevention a pharmacy can do. The checklist below covers the expiry scan, a count of high-risk items, supplier returns, dues and backups. It works with a paper register or with software, and it deals only with stock and records, not with any clinical matter.

Before you start

• Choose a quiet time, such as early morning or after closing.
• Assign two people: one to count, one to record. Swap occasionally.
• Print or open the current stock list by rack, if you have one.
• Prepare boxes or trays to separate expired, near-expiry and damaged items.

Part 1: The expiry scan

Work rack by rack, not product by product, so nothing is missed.

1. Pull out every item whose expiry falls within the next three months. Place it in the near-expiry tray.
2. Pull out anything already expired into the expired tray, and keep it physically apart from saleable stock.
3. Check opened strips and loose stock too; they are easy to forget.
4. Look for items with torn labels, missing batch information or damaged packs and tray them separately.
5. Note any item stored in the wrong place, such as items that need a cool place left near a window. Follow the storage instructions on the pack.

Part 2: Reconcile with the record

For the near-expiry and expired trays, compare what you found with the register or the near-expiry report. Differences usually mean one of three things: a batch was recorded wrongly, a sale was entered against the wrong batch or stock was moved without a record. Fix the record and note the cause.

Finding	Likely cause	Fix
Physical stock higher than record	Purchase not entered or sale cancelled without return to stock	Check recent purchases and cancelled bills
Physical stock lower than record	Sale not billed, loose sales not converted, damage not recorded	Check counter practice and damage log
Expired item not in report	Expiry entered wrongly at purchase	Correct the date and review that supplier's bills
Batch on shelf not in record	Delivery shelved before entry	Enter the purchase and review delivery routine

Part 3: Count the items that matter most

You do not need to count everything each month. Count:

• The twenty fastest-moving products.
• The highest-value products, since an error there costs most.
• Any product where you suspected a mismatch last month.
• Items that must be stored or recorded under stricter rules; ask the regulator which these are for your licence.

Rotate the rest across the year so every product is counted at least once.

Part 4: Supplier returns and write-offs

1. Group near-expiry items by supplier and prepare a list with batch, expiry, quantity and original bill reference.
2. Send the list to the company representative within the supplier's return window.
3. Record each accepted return so the supplier ledger shows a credit.
4. For items that cannot be returned, decide whether to sell at a reduced margin or write them off. Record the decision and who approved.
5. Dispose of expired items according to the rules that apply to you. Ask the regulator or your association if you are unsure.

Part 5: Dues and cash

• List supplier bills due in the next two weeks and plan payments.
• List customer credit balances over thirty days and send a polite reminder.
• Match the month's sales summary with cash and bank deposits.

Part 6: Reorder and shortages

Using last month's sales, list the fast movers that are low and place orders. Note items customers asked for that you did not have. If the same request appears three times, consider stocking it. Be careful with large orders driven only by a supplier's scheme; if the item expires before you sell it, the scheme was no saving.

Part 7: Records and backup

• Check bill sequence for gaps.
• Confirm all purchase bills of the month are entered.
• Back up the data and test that the backup can be opened.
• Store printed month-end reports in a labelled file.

Common mistakes

• Auditing only when an inspection is expected.
• Letting the same person count and record, which hides errors.
• Putting near-expiry items back on the shelf "for now".
• Not writing down what was found, so nothing improves next month.

Who should do the audit

Where possible, rotate the people involved. If the same employee always counts a rack, a habit or an error can persist unnoticed. The owner or manager should join at least the near-expiry decisions, because those involve money and supplier relationships. Make the audit part of the job description so it does not feel like a punishment, and share the result with the team: how much was saved from return, how much was written off and what changed because of it.

Keep each month's findings in one place, with the date, the names and the actions agreed. After three or four months you will see which suppliers, categories and racks cause most problems, and you can act on patterns rather than on single incidents.

Automating the routine

With software, Parts 1, 2 and 6 become reports: near-expiry by month, stock by batch and low stock. WebsNP Pharmacy Management Software produces them from the purchase entries. If you also run a larger store with many categories, inventory management software covers multi-godown control.

Next step

Run Part 1 on a single rack this week and time it. You will quickly see how long a full audit takes and whether the records match. For a demo of the same checks in software, message WebsNP on WhatsApp at +977 9846280400.

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