by Vicki Kamperman
A new Container Store opened near me and I was thrilled. There is something very satisfying with having the contents of your kitchen shelves separated, organized and labeled for easy retrieval and inventory assessment. Knowing when you are about to deplete a supply of your favorite item, and then being able to restock using an Amazon Dash button to reorder is great supply chain management for kitchen pantries!
Have you utilized these same concepts in FrameworkLTC for your pharmacy inventory? Setting up the Formulary with zones and bins will help your technicians locate medications quickly when filling orders. Forecasting gives inventory managers the ability to reset reorder points based on dispensing history, assisting you in the creation of vendor purchase orders. And, FrameworkFlow devices help staff keep accurate inventory counts of what is on the shelves, providing vital information for calculating assets for balance sheets.
Another goal for accurate financial reporting is the ability to report on margins and profits. FrameworkLTC can assist you with accurate reporting on cost of goods when utilizing the following tools:
Update Costs from Disk (under the Utilities menu)
Update Costs from Disk is a utility designed to update specific fields with acquisition costs from specific vendors. Most often, the Actual Package Cost is the field selected for the update (on the Pricing tab of the Formulary.) Some pharmacies will update Actual Package Cost as they receive inventory. Some do not actually scan inventory into FrameworkLTC, and instead choose to run this utility. Other pharmacies scan and receive inventory, but still update the Actual Package Cost with weekly vendor catalog updates with this utility. Have you defined your standard operating procedure for setting acquisition cost in FrameworkLTC?
There is also an automated version of this Update Costs from Disk utility that is available on the downloads of the Customer Engagement Zone (called the FrameworkLTC EDI Cost Update Interface) offered by SoftWriters at no charge. It is scheduled to run automatically and setup mimics the Update Costs from Disk window. There are some vendors who are now utilizing the 832 Price/Sales Catalog Format to assist inventory managers in updating with their most current catalog product prices. It is important to know which format you are selecting (based on the file retrieved from the vendor) and which field in the Framework Formulary you are trying to update.
Update Inventory from Disk (under the Inventory menu)
Update Inventory from Disk is a utility found under the Inventory menu in FrameworkLTC. This utility will update both On Hand quantities and the Actual Package Cost. It can be used with Surecost or any vendor who provides this information in our CSV format. This utility could be run in place of Receiving Inventory (scanning in Inventory.) Be sure to run the correct utility, as these different utilities update different fields in FrameworkLTC!
Average Unit Cost (Inventory tab of the Formulary)
After setting the Actual Package Cost in the Formulary (through the receiving of inventory or updating with the utility), the Average Unit Cost should also be updated (the Inventory tab of the Formulary.) This is the per pill cost of the NDC, and is the field utilized during billing and sent to Sage as Cost of Goods (through the G/L report in Sage.)
- If you are receiving inventory, FrameworkLTC updates this field automatically when processing the receipt and keeps this field as an average over time.
- If you do not receive inventory, then clicking one time on the Copy Actual Costs to Average Unit Cost button on the Inventory tab of the Formulary (following your update of Actual Package cost) will recalculate the per pill cost based on the latest package price from the vendor.
To set up a review of your pricing and inventory process, please contact Lisa Ready (412.492.9841 x594) to schedule a web training. Let’s work together to fine-tune FrameworkLTC to maximize your financial reporting capabilities!
Vicki Kamperman is a FrameworkLTC trainer at SoftWriters, a Pittsburgh-based company that offers pharmacy management software solutions to pharmacies serving the long-term care community. Previously, she founded a company that assisted small business owners in applying technology to improve business outcomes. SoftWriters’ team of trainers work with software users to bring them up to speed quickly and provide ongoing training support to pharmacy teams.