Accounting of pharmacy in health fund

Accounting of  pharmacy in health fund 

Question:

Hello,
I would like to ask if I can get a consultation on a specific issue - related to the current accounting of a pharmacy working with a health insurance fund. The questions are as follows.
Should the pharmacy issue an invoice to the health insurance fund for the money it expects to receive on the financial statements
Does it issue credit notes to the health insurance fund for non-received amounts, and if it does not issue such as what type of expense it recognizes - uncollectible claim, default for contract or any other
Greetings.

Answer:

Hello,

There is no way to get funds from the Health Fund without issuing an invoice. Once an invoice has been issued for one transaction and it is subsequently found that some of the invoiced circumstances (price, quantity, type of service, etc.) are different from actual (or contracted) delivery, then the adjustment is made by issuing credit (or debit) notice.

In your case, the unpaid (unrecognized) rebate from the Health Insurance Fund is not an expense, but an unrecognized income because the drugs sold to customers at a reduced price are your income. And if you have received less money for sold medicines than the amount you paid for their delivery, then you just sold the medicines at a loss.

We hope we have been useful.

Greetings.