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Near-expiry stock

Stock close enough to expiry that it must be sold, returned or written off soon.

Near-expiry is an operational category rather than a legal one. What makes a batch near-expiry is not a fixed number of days but the distributor's return window: once a batch passes the last date on which it can be claimed, the options narrow from three to one.

That is why tracking the return window matters more than tracking the expiry date itself. A batch three months from expiry may already be past the point where it can be sent back, while another six months out may still be claimable.

The counter behaviour that reduces near-expiry loss is FEFO — dispensing the soonest-expiring batch first — which requires expiry recorded per batch rather than per medicine. Slow movers are where the loss concentrates, because a low-velocity line can sit for months without any single day looking wrong.

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Related terms

Expiry returnSending near-expiry or expired stock back to the distributor for credit. FEFO (First Expiry First Out)Dispensing the batch that expires soonest, rather than the one received first. Batch numberThe manufacturer's identifier for a specific production lot, printed on the pack. 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.