Industry sector:

Pharmacy: Cash from debtors


The remuneration arrangements for NHS dispensing vary depending on the part of the UK in which the pharmacy operates. In England and Wales it consists of reimbursement of the cost of the drugs prescribed, a Single Activity Fee, establishment and quality payments and fees for providing Advanced services. Enhanced services (such as smoking cessation) are commissioned and funded by local NHS commissioning bodies to meet local needs. Remuneration varies around the country. In Scotland pharmacy contractors are remunerated for dispensing prescriptions and for providing the core healthcare services introduced by the revised contract. In Northern Ireland pharmacists receive reimbursement of the cost of the drugs they dispense, together with oncost allowances and dispensing fees.

Details of NHS fees and allowances are contained in the official Drug Tariff published monthly. You can access the electronic Drug Tariff on the NHS Business Services Authority (NHSBSA) website (previously the Prescription Pricing Authority). The Drug Tariff for Scotland can be accessed on the ISD Scotland website and the Drug Tariff for Northern Ireland can be downloaded from the HSC Business Services Organisation website.

Payments are made monthly, but the payment is not sent to the pharmacist until two months after the month to which the payment relates, although an advance payment is made after one month. For example, prescriptions dispensed in June would not be fully paid for until 1 September, although an advance payment would have been made on 1 August. Monthly payments are set out on a statement of account.

When you receive a monthly NHS payment, the payment is referred to as 'Cash from debtors'.

Make an estimate of the income you might receive from debtors and enter that amount in the month in which the money will be received.