Field representatives often hear MRP, PTR, PTS and 'net rate' in the same conversation. These are not interchangeable.
Using the wrong one in a chemist order can create an avoidable disagreement between the field team, retailer and stockist.
An order is reliable when anyone reading it can understand how the final amount was reached.
- Use the latest company-approved rate sheet
- Check whether figures include applicable taxes
- Display billed and free units separately
The trade-price terms
MRP is the maximum retail price printed for the consumer-facing pack, subject to applicable rules. PTR commonly refers to the price to the retailer.
PTS is the price to the stockist. Commercial practice and tax treatment can vary with the product, contract, state and applicable regulation; a representative should use the company's current approved price schedule, not an old message or an assumed margin.
Quantity and free-goods example
Assume a fictional training product is offered at ₹80 per billed pack, with ten billed packs and two free packs. The billed value is 10 × ₹80 = ₹800.
The retailer receives twelve packs, so the effective acquisition cost across all packs is about ₹66.67, before other applicable adjustments. This is a mathematical training example, not a product offer or a tax-inclusive quotation.
Try the POB price and free-units calculator
Change the three sample inputs. The chart and effective rate update immediately, this is a learning tool, not a company-approved trade offer or a live order
| Billed units | 10 |
|---|---|
| Free units | 2 |
| Illustrative PTR / unit | ₹100.00 |
| Invoice before tax and adjustments | ₹1,000.00 |
| Total units supplied | 12 |
| Effective amount per supplied unit | ₹83.33 |
Formula, effective amount per supplied unit = billed amount ÷ (billed units + authorised free units). The calculation excludes taxes, credit notes, extra discounts and other schemes. Confirm all commercial details against your company's approved price list
Why effective rate needs explanation
A buyer may focus on the effective cost per received pack, while the printed invoice follows a billing method that treats free goods separately. Both figures can be useful, but a quote should name them clearly.
Never relabel an effective rate as official PTR unless the company's schedule actually defines it that way. Also verify rounding, tax rules and scheme eligibility before acceptance.
What a field order form should show
A useful order document keeps the product, pack, bill quantity, free quantity, unit rate and payable total on separate visible lines. This helps both the MR and the chemist catch a mismatch before it reaches distribution.
The software should support the commercial process rather than inventing its own pricing rules.
- Use the latest company-approved rate sheet
- Check whether figures include applicable taxes
- Display billed and free units separately
- Confirm the final value with the customer
An order is reliable when anyone reading it can understand how the final amount was reached.
Pharmadigi — grounded in pharma field experience
Doctors Detailing is developed for pharma field workflows under the direction of Sandeep Kumar Soni, Pharma Business Consultant & Trainer. The field guides are prepared by the Pharmadigi editorial team and should be reviewed against your company policy before use.
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