Accounting & Bookkeeping ยท KBLI 21010
Precision Pharmaceutical Accounting
R&D capitalization, batch costing for CPOB compliance, and active ingredient inventory
Compliance Warning
This industry is considered high risk and may receive closer attention from tax authorities. Professional tax consultation is strongly recommended.
What usually goes wrong
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R&D Capitalization Threshold
Drug development costs must be split between research (immediate expense) and development (capitalized) โ the milestone where technical and commercial feasibility is proven determines the split.
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CPOB Batch Production Costing
Each production batch requires complete documentation and cost allocation per CPOB standards, with yield variance and rework tracking for non-conforming batches.
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Expiry-Dated Inventory Valuation
Pharmaceutical inventory has strict shelf lives โ write-downs must be calculated based on remaining shelf life and historical slow-moving patterns.
What we do
- 01
R&D Accounting Framework
Structured framework for separating research and development costs with clear milestone criteria for capitalization per PSAK 19.
- Compliant capitalization
- Tax deduction optimization
- Investor-ready reporting
- 02
CPOB Batch Costing System
Detailed per-batch cost tracking covering active ingredients, excipients, packaging, labor, and quality control overhead allocation.
- Accurate batch COGS
- Yield variance analysis
- Regulatory audit ready
- 03
Inventory Shelf-Life Management
FEFO-based inventory valuation system with automatic provisions for nearing-expiry and expired stock.
- Minimized write-offs
- Accurate NRV assessment
- Regulatory compliance
Related regulations
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PSAK 14
Inventories
Active pharmaceutical ingredients and finished drug valuation
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PSAK 16
Fixed Assets
Capitalization of sterile manufacturing facilities and production equipment
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PSAK 19
Intangible Assets
Capitalization of drug formulation R&D costs when technical feasibility met
If the tax office starts asking questions
The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.
Frequently Asked Questions
When can pharmaceutical R&D costs be capitalized?
PSAK 19 requires all 6 criteria: technical feasibility of completion, intent to complete, ability to use/sell, probable future economic benefits, availability of resources, and reliable cost measurement. For drugs, capitalization typically begins after successful Phase II clinical trials demonstrate both safety and efficacy.
How is CPOB batch manufacturing cost calculated?
Each batch is a separate cost unit. Direct costs: active ingredients, excipients, packaging materials. Indirect costs: equipment depreciation, facility overhead, quality control testing, and validation costs. Yield variance is calculated as the difference between theoretical and actual output per batch. Rework costs are expensed.
How do accounting services improve operating cost efficiency?
Accurate, timely financial reports help you spot cost leakage, monitor margins by product or service, and make data-based decisions.
Can financial reports be accessed in real time?
Yes. We use cloud accounting systems so you can monitor cash flow, profit and loss, and business performance from anywhere.
How do you ensure reports are ready for external audits or banks?
Reports are prepared with clear documentation and traceable transaction data.
Tell us about your business
Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.
Chat on WhatsApp- +62 851 1730 8880
- info@arunikaconsultant.com
- Sidoarjo, Jawa Timur