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Gross to Net Profitability Analysis

Features and Benefits

  • Combines sales data with all price concessions, deductions and expenses to ensure that Net Profits calculated in the system match monthly P&L statements
  • Takes into account all income and expenses not going through the sales channels
  • Accrues for chargebacks, rebates, Medicaid and other pharmaceutical deductions, calculated in Pharma Suite modules
  • Enabled users to track all significant P&L lines and to see their effects on profits
  • Supports multiple-costs model
  • Allows creation of numerous KPIs and profits
  • Shows true profits on any level of grouping: by accounts, products, sales reps, divisions, warehouses, time periods, and other factors
  • Provides historically correct information
  • Calculates costs payment terms and credit card charges
  • Tracks sales rep expenses as a combination of fixed and variable costs
  • Configured to match each manufacturer¬† business model
  • Creates forecasting

Remarkable Facts

The program discovered, that the manufacturer was losing serious money on one of its largest customers – a National Chain. An agreement with this chain was re-negotiated to the manufacturer advantage.
The key argument in the negotiations was a Profitability Statement for that chain, showing effects of numerous concessions, given by the manufacturer, on its net profits: good prices, high rebates percentage, costs of a dedicated sales rep and his manager, high volume of free goods, long payment terms and yet still delayed payments, lots of returns, etc.
Regular ERP reports did not show that the manufacturer was consistently losing money on this chain.
Gross-to-Net Profitability Analysis tells if the company is making or losing money on any business segments.

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