On Internal Control Of Sales And Receivables In Pharmaceutical Enterprises

The development of the pharmaceutical industry depends on the continuous growth of pharmaceutical companies.Internal control is so important that enterprises must pay attention to the risk in management process.However,many Chinese pharmaceutical companies do not pay much attention to the construction of internal control,and there are still many problems in the process of implementation.These have largely restricted the development of pharmaceutical companies.Frequent medical accidents occurred in recent years,the quality of medical care,public health is a serious threat.For companies,a variety of commercial bribery affair was exposed,the outbreak of the public security accident,not only makes the pharmaceutical companies that the litigation and heavy fines may even survive crisis,also make the whole industry faces a crisis of confidence.Such as the 2011 "poison capsule" incident,the GSK commercial bribery incident,and the recent Changchun Changsheng biological vaccine incident.In the business link chain of pharmaceutical enterprises,the risk generated by the sales link is the focus of enterprise risk management.Sales activities and payment collection activities are inseparable components of the sales link,and poor internal control is an important factor leading to the above problems.Therefore,pharmaceutical enterprises need to adopt corresponding plans,strengthen the internal control system construction of sales and payment collection links,and constantly promote the development of the pharmaceutical industry.The IPO of Chongqing Shenghuaxi Pharmaceutical Co.,Ltd.was unveiled in May 2017.The fundamental reason lies in internal control issues such as commercial bribery.In April 2018,it was once again punished for illegal production.After being checked of the internal production process,it was found that the aseptic control and safeguard measures were incomplete,and the aseptic bulk drug production process was at high risk,and the information disclosure was fraudulent.In 2016 and 2017,the company did not organize employees for medical examinations,and its medical examination report was fabricated.The Food and Drug Administration subsequently withdrew the GPM certificate from the company.Shenghuaxi has grown from a chemical factory to a medium-sized chemical pharmaceutical company with a revenue of more than 400 million.As a pharmaceutical company that has been preparing for the market for many years,Shenghuaxi has a certain representativeness of internal control defects.Similarly,due to internal control problems the listing of those enterprises failed,such as Shenghe Pharmaceutical,Puhua Pharmaceutical,and West Point Pharmaceutical.It shows that in order to prevent risks such as commercial bribery,the internal control defects of pharmaceutical companies need to be improved.Therefore,this article takes Shenghuhaxi as the object of case study,and expects to put forward corresponding improvement Suggestions are based on the internal control framework for the internal control problems of sales and receivables in China’s pharmaceutical enterprises.By taking the sales activities of pharmaceutical industry as the entry point and internal control as the main line,this paper firstly makes a simple analysis of the common problems in the internal control of the industry,and sorts out the sales business processes and characteristics to get the risk points that should be paid attention to in the sales and receivables of pharmaceutical enterprises.After the detailed elaboration of the specific case of Shenghuaxi,the risks in the sales and collection activities of the enterprise were analyzed,and the internal control status of the sales and collection business of the enterprise was analyzed based on the five elements of internal control,and the main problems in its internal control were found out.Finally,the corresponding improvement measures are put forward for its internal control defects.The case of Shenghuaxi pharmaceutical has certain reference significance for the whole pharmaceutical industry,especially for those small and medium-sized pharmaceutical enterprises or pharmaceutical enterprises developed from family enterprises.These enterprises have common problems in all aspects of internal control of sales,and also have their own problems.This paper aims to draw the attention of pharmaceutical enterprises to the prevention of potential risks in sales and receivables,constantly improve the overall level of enterprise internal control,and ensure the steady development of pharmaceutical industry through this case.