Audit

This query is : Resolved

Neelam (Querist)
Follow

25 July 2011 What details need to be checked in case of Incentives paid by pharmaceutical companies to its Medical Representatives for Sales & Distributions of medicines to stockists, retailer,etc?

CA Sachin D Jain

CA Sachin D Jain (Expert)
Follow

26 July 2011 Details to be checked are as follows:

1. Agreement between the Co and Medical representative for verifying details of commission/incentive % and minimum and maximum limit, if any.

2. Report of Representative-wise sales made.

3. Sales reports should be properly approved by authorised personnel.

4. the Commission/incentive paid should be calculated as per the terms of agreement.

5. Comparison of commission of sales ratio of current year with that of previous year and finding out reasons for major variations.

6. Getting confirmation of incentive payable account from individual medical representative.

7. To check subsequent payments for incentive payable as the end of the year.