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201507198

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Policies,Clinical,UWHC Clinical,Department Specific,Pharmacy,Purchasing and Inventory

Retail Pharmacy Annual Inventory Validation (9.10)

Retail Pharmacy Annual Inventory Validation (9.10) - Policies, Clinical, UWHC Clinical, Department Specific, Pharmacy, Purchasing and Inventory

9.10






Effective Date:


Pharmacy Policy Manual
Chapter: Purchasing – Inventory
Management

Policy #:
9.10

 Original 7/15
 Revision

Page 1
Of 2

Title: Retail Pharmacy Annual Inventory
Validation


I. PURPOSE
1) To establish the process for quantifying and validating the on-hand prescription
medication inventory.

II. POLICY
1) UW Health pharmacies will maintain their on-hand prescription medication quantities
via perpetual inventory. On an annual basis, that inventory will be validated by
performing on-hand product spot checks.

III. DEFINITIONS
1) EnterpriseRx: retail pharmacy management software.
2) Perpetual inventory: system for updating on a continuous basis the cost, quantity and
availability of medications within the store.

IV. PROCEDURES
1) Inventory Validation
A. On an annual basis in May, an inventory report from EnterpriseRx shall be
run at the close of business on the day prior to validation.
B. Based on the inventory value, a certain number of items will be counted by
hand to validate the inventory.
C. The number of items to count will be selected as outlined below:
Value of Inventory Number of Items
< $500,000 25
$500,000 to < $750,000 50
$750,000 to $ 1,000,000 75
>$1,000,000 100

D. On the day of the audit the Inventory Valuation Report from EnterpriseRx
will be generated (the pre-inventory).
E. A count of selected items as determined above is completed and
documented on the count sheet.
F. Adjustments are then made for any items with differences between on hand
and EnterpriseRx count values.
G. After the adjustments, a second Inventory Valuation Report from
EnterpriseRx will be generated (the post-inventory).
H. The pre-inventory, count sheets, and post inventory are sent to Ambulatory
manager who reviews and stores the documents electronically on the J drive
as follows:
1. J:\Rx\RXShare\Inventory Management\FYXX\Retail
Audit Files
I. Internal Audit will review reports on the J: drive as needed to validate that






Effective Date:


Pharmacy Policy Manual
Chapter: Purchasing – Inventory
Management

Policy #:
9.10

 Original 7/15
 Revision

Page 2
Of 2

Title: Retail Pharmacy Annual Inventory
Validation


the perpetual inventory system are reporting the correct inventory balances
in the general ledger.

2) Controlled Substance Evaluation (CII-CV)
A. To satisfy DEA requirements, UW Health pharmacies will perform an
annual controlled substance inventory for of all controlled items.
B. Upon completion of the inventory, a report containing the following
will be maintained in printed form:
1. Name of the medication
2. Strength and dosage form
3. Package or bottle size
4. Number of packages or bottles
5. Signature and date by the Outpatient Pharmacy Coordinator
6. Record of when the inventory was taken (at open or close of date)
C. The staff completing the inventory will make a copy of the original form
and send it to the ambulatory pharmacy manager to be stored electronically.
1. These reports are saved in the following folder by fiscal year:
a. J:\Rx\RXShare\Inventory Management\FYXX\Retail
Audit Files
D. The original inventory form will be kept on site.


V. COORDINATION
1) Authored by: Carrie Boeckelman
2) Reviewed by: Pharmacy Ambulatory Leadership Team, Internal Audit Department
3) Committee Approval: None



Approved By:___________________________

Director of Pharmacy Services
Date:_________________