Pharmacy Billing and Record Keeping in Nepal

A Nepali pharmacy should keep sequential sales bills, purchase bills from licensed suppliers, batch-wise stock records and a clear trail for returns and write-offs. Exact obligations come from the drug regulator and the tax authority, and they change, so this article describes sensible record keeping and tells you where to confirm the rules. It is not legal, tax or medical advice.

Who sets the rules

Two bodies matter most for day-to-day records. The Department of Drug Administration deals with drug licensing and what a pharmacy must keep and show. The Inland Revenue Department deals with PAN, VAT and invoice rules. Your accountant and your pharmacy association can help interpret them. When in doubt, ask them rather than relying on a software vendor, including us.

Sales records

Every sale should produce a bill with a sequential number. A tax invoice generally includes:

• Pharmacy name, address and PAN or VAT number.
• Date in Bikram Sambat.
• Item name, quantity, rate and amount.
• VAT where applicable, and the total.
• Customer name and PAN for business buyers.

Treatment of VAT can differ between product categories, so ask your accountant how each of your main categories is handled and set it in the product master. Do not assume that all items are treated alike.

Purchase records

Buy only from licensed suppliers and insist on a proper bill for each purchase. A valid bill supports your cost, your stock and any VAT you claim. For each purchase, record:

1. Supplier name, PAN and bill number.
2. Date, item, batch, expiry and quantity.
3. Rate, discount, VAT and total.
4. Payment status and due date.

If a supplier offers free goods with a scheme, record the free quantity too. Otherwise the stock will not reconcile.

Batch-wise stock register

Stock should be recorded by product and batch, with opening quantity, purchases, sales, returns and closing quantity. This is what allows you to answer questions about a particular batch and to value stock accurately. A monthly physical count against the register finds differences early.

Prescription-linked sales

Some medicines may be sold only against a prescription under the rules that apply to them. Check with the regulator which categories require a prescription record and what you must retain. In your own system, you can record the prescriber's name and reference where required, but the software does not decide what may be sold and it gives no clinical advice. That responsibility rests with the pharmacist.

Returns, damage and expiry

Event	Record
Customer return	Credit note, reason, and a decision on whether the item may go back on sale under your policy
Return to supplier	Debit note with batch, expiry and original bill reference
Expired stock	Write-off or return entry with date and quantity
Damaged stock	Write-off with reason and who authorised

Never delete a bill to correct a mistake. Cancel it with a note, or issue a credit note, so the numbering stays intact.

Month-end routine

• Check bill sequence for gaps.
• Match purchase bills to stock received.
• Review credit notes and write-offs.
• Produce the sales and purchase summary for your accountant.
• Count a sample of fast movers and compare with the register.
• Review the near-expiry list.

The Nepali fiscal year starts in Shrawan, so annual closing and stock valuation follow that calendar. Reports by Nepali month help your accountant.

Dealing with an inspection or a query

Pharmacies may be visited by officials who ask to see licences, bills and stock records. Stay calm and organised: keep your licence displayed, keep recent purchase bills filed by month and be able to show the sales register for any date. If the officer asks about a specific batch or product, a batch-wise register lets you show the quantity received, sold and remaining without a long search.

Ask the inspector for the reason and the list of documents they need, and note the names and date of the visit. If anything is unclear, consult your pharmacy association or a lawyer. Do not alter records after the fact; correct them through proper entries with the date and reason, so the audit trail is honest.

Similar care applies to customer data. Names and phone numbers of credit customers are personal information, so restrict who can see them and avoid sharing them casually.

How software supports these records

A pharmacy system can number bills in sequence, hold purchase bills with batch and expiry, apply VAT settings per product, record returns and write-offs and print the summaries above. It does not replace professional advice and we make no claim of any official approval. WebsNP Pharmacy Management Software is built around this record keeping. For general VAT billing questions beyond pharmacy, see VAT billing software.

Next step

Ask your accountant for a one-page list of what they want from you each month and compare it with what your current system produces. Then book a demo and ask us to produce those same reports. Message WebsNP on WhatsApp at +977 9846280400.

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