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PTS and PTR Calculation Example - Price to Retailer and Stockist

Posted: 27 Jan 2023, 11:02
by Admin
PTR: The full form of PTR is “Price to Retailer”. It is the price at which a retail pharmacy will purchase any medicine from the pharma stockists. It is exclusive of GST.

Calculation of PTR

To calculate the PTR, first we have to calculate Net Margin and GST Factor.

Net Margin = MRP—Retail %
GST Factor = 100 + GST% / 100
After calculating net margin and GST factor, we can calculate PTR

PTR = Net margin / GST Factor.
PTS: The full form of PTS is “Price to Stockists”. It is the price at which any pharma company will give its goods to pharma stockists or distributors. It is exclusive of GST.

Calculation of PTS

The formula to find PTS is: PTS = PTR—Stockist %
Example to calculate PTR and PTS

Suppose,
MRP = 100 Rs
Retail % = 20 %
Stockist % = 10%
GST% = 12 %

Net Margin = MRP—Retail %
100 – 20 = 80

GST Factor = 100 + GST% / 100
100 + 12 / 100 = 1.12

PTR = Net margin / GST Factor
80 / 1.12 = 71.42 Rs

PTS = PTR - Stockist %
71.42 - 10% = 64.28 Rs