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FEFO (First Expiry First Out)

Dispensing the batch that expires soonest, rather than the one received first.

FEFO is a picking rule: always issue the stock with the earliest expiry date, regardless of when it arrived. It differs from FIFO — First In First Out — whenever stock does not arrive in expiry order, which in pharmacy happens constantly. A distributor can deliver a batch today that expires before one you received two months ago.

Where the two rules disagree, FIFO leaves the shorter-dated stock sitting on the shelf, and that stock is what turns into a write-off. In most retail categories the distinction barely matters; in pharmacy it is the difference between selling a pack and destroying it.

FEFO requires expiry recorded **per batch**. An item-wise stock record that shows only a total per medicine cannot support it at all, because there is no way to know which units should move next. This is the practical reason a stock register should be batch-wise.

No Indian rule names FEFO as a required method. What is absolute is that expired stock cannot be sold — Section 27 of the Drugs & Cosmetics Act carries fines and imprisonment. FEFO is simply the dispensing discipline that keeps a shop on the right side of that.

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Related terms

Expiry returnSending near-expiry or expired stock back to the distributor for credit. Batch numberThe manufacturer's identifier for a specific production lot, printed on the pack. Rule 65The rule in the Drugs & Cosmetics Rules 1945 setting out sale conditions and record-keeping. Shortbook (short book)The record of medicines a customer asked for that were out of stock. Stock rotationArranging stock so the soonest-expiring units are dispensed first.

All terms

Batch numberBreakage and damageCDSCOCGST, SGST and IGSTCold chainCredit noteDPCO (Drugs Prices Control Order)Drug licence (Form 20 / Form 21)Expiry returnFEFO (First Expiry First Out)Generic vs branded medicineGSTR-1GSTR-3BHSN codeInput tax credit (ITC)Loose sale (cut strip)MRP (Maximum Retail Price)Narcotic registerNear-expiry stockNPPAPack factor (units per pack)Pharmacist registrationPTR (Price to Retailer)PTS (Price to Stockist)Purchase invoiceRed-border warning labelReorder levelRetail vs wholesale drug licenceReturn to vendor (RTV)Rule 65Rx symbolSalt compositionSchedule HSchedule H1Schedule XScheme goods (free goods)Shortbook (short book)Stock rotationStockist

This glossary is a practical reference for Indian retail pharmacy, not legal, tax or clinical advice. Requirements under the Drugs & Cosmetics Rules are enforced by state drug control authorities and vary; GST treatment should be confirmed with your CA. Verify anything you intend to rely on against the current notified position. As of August 2026.