Contract Chargeback Reconciliation
We have automated the time-consuming and complex deduction-credit reconciliation process. This eliminates the multi-step reconciliation cycle required when the wholesaler’s chargebacks differ from your calculations. This process can be integrated or handled offline.
For example, pharmaceutical manufacturers sell prescription drugs to wholesalers at standard wholesale pricing. Chargebacks occur when the wholesalers sell those drugs to institutions that have negotiated lower contract pricing with manufacturers. They also occur when the drugs or are eligible for government-negotiated pricing programs such as the VA, Public Health Service, etc. In these cases, the wholesaler is invoiced at the full price and the institutional customer is invoiced by the wholesaler at the applicable contract price. The difference is charged back to the manufacturer, including the wholesaler’s margin.
When submitted to the manufacturer, the chargeback must be reconciled in detail to assure that the amount correctly reflects the legitimate variance between the initial price and the ultimate contract price.
Chargeback Variance Reconciliation
