Managing medicine expiry, near-expiry and returns in your pharmacy

Every pharmacy loses some stock to expiry, but the difference between a tidy shop and a leaky one is how early you catch it. Expired or near-expiry medicine ties up cash, risks a compliance problem if it reaches a customer, and is far easier to deal with weeks ahead than on the day it lapses. A simple routine keeps the loss small.

Why expiry control matters

Dispensing expired medicine is a serious breach of your licence and a risk to your customer's health. Beyond compliance, every expired strip is stock you paid for and cannot sell. Tight expiry control protects both your customers and your margin.

Record expiry dates from the day stock arrives

Check expiry dates when you receive an order, not months later. Note the shortest-dated batches as you shelve them so you always know what needs to move first. If you use billing software, enter the batch and expiry so the system can warn you; if you work on paper, a simple near-expiry register does the same job.

Use FEFO: first-expiry, first-out

Shelve and dispense so the earliest-expiring batch sells first. Place newer, longer-dated stock behind older stock, not in front of it. FEFO is the single habit that prevents most avoidable expiry, especially on slow-moving lines.

Spot near-expiry stock early

Run a short check each month for anything within about three to six months of expiry. Move those lines to the front, use them for any offers, and stop reordering them until the existing stock clears. The earlier you flag a near-expiry item, the more options you have.

Handle returns, breakages and credit notes

Agree the returns position with your distributor up front: which near-expiry or saleable items can be returned, the notice required, and how breakages in transit are handled. Keep returned and damaged stock separate from saleable stock, record it, and collect a credit note so the value is properly accounted for.

Buy in the right quantities

Most expiry traces back to over-ordering. Buy slow-movers in small quantities and lean on a distributor who delivers often, so you can reorder quickly instead of holding months of stock. Frequent, smaller orders beat large ones that sit and age.

A simple monthly routine

• Check and record expiry dates on every incoming order
• Shelve and dispense first-expiry, first-out (FEFO)
• Review near-expiry stock (3–6 months out) once a month
• Move, discount or stop reordering near-expiry lines early
• Keep returns and breakages separate, recorded and credited
• Order slow-movers in small, frequent quantities

A distributor with short lead times makes all of this easier — you can hold less stock, and clear returns terms keep your losses small.

Frequently asked questions

Check the current rules at the source

This guide is general information, not legal or tax advice. Rules change, so confirm anything that affects your licence or your filings with the authority itself:

• Central Drugs Standard Control Organisation (CDSCO)

Related guides

Batch, expiry & MRP (guide) · Avoiding stockouts (guide) · New pharmacy stock (guide)

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