Have confidence in the data that drives government pricing computations.
Missed transaction-level details can skew government pricing computations and impact your bottom line by millions of dollars. That’s why it is imperative to have confidence in the data that drives government pricing.
Ultimately, both underpayment and overpayment of government rebates can result in huge losses. Even those in your favor can cost you in time, resources and missed opportunities. Additionally, there is the potential for fines. Late or miscalculated payments can result in penalties and interest amounting to many thousands of dollars per day. Incorrectly accruing for rebate liability can wreak havoc on a company’s financials down the road.
Are the internal or external people responsible for your government pricing up to the challenge of managing every single detail? Are they paying strict attention to coding Class of Trade (COT), chargebacks, Order to Cash (OTC) and credit memo processes, to name a few? Missing, overlooked or erroneous data can dramatically impact your rebate liability, skew your “Gross to Net Calculations,” and ultimately undermine your profitability.
How can you become confident in your data? The only way is to be meticulous. Don’t rush it. As they say, the devil is in the details. Pour over those details. Follow a disciplined methodology to ensure that clean datasets are driving your computations.