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It is the beginning and the end of the accounting business cycle (cash-inventory-sales-cash) and the lifeblood of the business organism. It is the function of managem

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ent to ensure that sufficient cash is available to meet the needs of the enterprise. A sound cash flow is the basis for a financially healthy enterprise. Nearly all

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

he transactions that are recorded involve a flow of cash either to the enterprise (a receipt) or from the enterprise (a payment). The cash flow generated by some tran

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

actions is not immediate, but will take place at a later stage, for example stock bought on credit.

Cash may be defined as any legal medium of exchange that is immedi

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

tely negotiable and free of restrictions. It includes coins, notes, cheques, postal orders, savings deposits and bank deposits. An essential requirement is that it m

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

st be immediately available as legal tender; therefore, loans to employees, postage stamps and fixed period deposits cannot be regarded as 'cash' for accounting balanc

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

sheet purposes since they are subject to conversion before they are available as cash.

Because cash is the most liquid asset, it is the most easily misused. Therefo

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

re, every enterprise must have an effective internal accounting control system for cash. In smaller enterprises, the owner or manager usually exercises personal contr

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

l over all cash transactions. In larger enterprises, however, it is impossible for one person to exercise individual control; therefore, the accounting system of the

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

nterprise must be designed to include adequate control measures over cash flow. The design of this accounting system should include control totals at various points a

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ainst which the accuracy of a series of items can be tested.

A sound cash accounting control system should meet the following requirements: Employee' duties and funct

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

ons must be separated to ensure that those persons who receive, pay out or handle cash in any way are not involved in the recording function. This prevents a person f

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

om misappropriating funds and concealing the fact by forging entries in the accounting books. The functions of the employees must be divided in such a way that, an er

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

or by one employee will be revealed by another employee. This means that the collusion of a least two employees is necessary if funds are to be embezzled.

Cash recei

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

pts must be recorded in such a way that the actual cash received can be checked against an independent daily record. Therefore, a source document must be prepared as

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

oon as cash is received. The source document should show the amount, the date of receipt, the reason for the receipt and, where applicable, the person who made the pa

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

ment. Examples of this type of accounting source document are receipts, cash sales slips, invoices and control and audit rolls used in cash registers.

All cash recei

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ed must be banked daily and no payments should be made from the receipts. This ensures that cash is safe overnight and bank deposit slips serve as a control total for

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

cash received.

All payments except petty cash payments must be made by cheque. Cheques must be countersigned and supported by a properly controlled and authorised so

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

rce document that serves as proof of payment. The functions of the employees handling cheques must be separated from those of the employees recording the transactions

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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