FBR POS integration for pharmacies: who needs it and how it works

FBR POS integration for pharmacy owners is a topic where rumours travel faster than facts. Some owners believe every medical store must integrate, while others assume it will never apply to them. This guide explains in plain terms who has to do it, what it changes at the counter, and how to set it up without slowing your billing.

It is general information, not tax advice. For your own shop, your tax adviser and FBR have the final word.

What FBR POS integration means

Integration connects your billing software to the Federal Board of Revenue. Each time a bill is made, the software reports it to FBR. FBR sends back its own invoice number, which prints on the customer's receipt together with a QR code. The receipt also tells the customer how to check the invoice: through FBR's Tax Asaan mobile app or by SMS to 9966.

A Re 1 POS service fee is added to each invoice made through an integrated POS. The customer pays it, and it is owed to FBR. It is not part of your sale and not your income.

Who has to integrate: Tier-1 retailers

The duty applies to retailers that FBR classes as Tier-1. FBR decides who is in this group, and the definition has changed from one budget to the next. At different times it has covered shops in air-conditioned malls and plazas, national and international chains, shops above a set floor area or electricity bill, and shops that accept debit or credit cards.

Because the rules move, do not rely on what another shop was told, or on an old message doing the rounds. Check your status on FBR's IRIS portal, or ask a tax adviser who knows your business. If you are Tier-1, treat integration as required and ask your adviser what delay could lead to. The consequences can be serious.

If you are not Tier-1

Many neighbourhood medical stores are not Tier-1. If that is you, there is nothing to integrate, and your software should not push FBR fields, fees or receipt lines on you. If your situation changes, for example after a move into a mall, check again.

What you need from FBR first

The software is the quick part. Registration on FBR's side takes longer, so start there. Log in to IRIS with the NTN of the owner or the company, then:

1. register each shop as an outlet, with its address;
2. register a POS for each outlet, which gives you a POS ID;
3. choose how your software will reach FBR (see below), and get an access token or install FBR's Fiscal Component;
4. ask for sandbox (test) access if you want to try everything before going live.

Keep your NTN and, if you are registered for sales tax, your STRN ready. Both print on every receipt.

Online API or FBR Fiscal Component

A POS can talk to FBR in two ways.

The online API is simpler when the counter has a steady connection. The Fiscal Component suits shops where the line drops often.

When the internet goes down

A pharmacy cannot stop selling because FBR's server is slow or the PTCL line is dead. FBR allows invoices made while the connection is down to be sent later. What matters is that your software does this on its own, without keeping the customer waiting.

In MediPOS, the sale is always saved and the receipt printed first. If FBR answers, the receipt carries the FBR invoice number and QR code. If FBR cannot be reached, the receipt prints OFFLINE INVOICE in place of the number and the bill joins a queue. The queue is sent automatically every five minutes until FBR accepts each invoice, and a reprint then shows the FBR number. The dashboard shows how many invoices FBR does not have yet, so nothing slips through.

The Re 1 fee, voids and returns

Three details catch owners out:

• The fee comes after rounding. A Rs 350 bill becomes Rs 351. The fee should print as its own line and stay out of your sales and profit. MediPOS books it to sales tax payable, because it belongs to FBR.
• Voids and returns are reported too. A voided bill or a sale return goes to FBR as a credit note that points back to the original invoice.
• Not everything is a medicine. Cosmetics, baby food, soap and juices may need their own PCT code, and some are Third Schedule items, taxed on the printed retail price. MediPOS uses 3004.9099 for medicines by default. Confirm codes and tax rates with your adviser.

How it works in MediPOS

MediPOS is FBR integrated pharmacy software built for exactly this, and the integration is optional. Until you switch it on, nothing is sent, no fee is added, receipts carry no FBR lines and products show no PCT code field. For the many medical stores that are not Tier-1, it is as if FBR support did not exist.

Two things must be true before you can use it:

1. Your plan includes the FBR POS integration module. If it does, a box called FBR POS integration appears in Settings. The pricing page shows which plans include it.
2. You switch it on. Tick Report invoices to FBR, choose the online API or the Fiscal Component, enter your POS ID and, for the API, your token, and save.

Start in Sandbox, make a small test bill, and check that the receipt shows your NTN, the POS ID, the Re 1 fee line, the FBR invoice number and the QR code. Then switch to Live. On the Cloud edition with several branches, each branch is its own FBR outlet with its own POS ID. On the Offline edition, the Fiscal Component mode keeps reporting through internet cuts.

This is where integration built into your pharmacy POS software pays off. There is no separate tool for cashiers to learn, and returns, voids and the fee are handled in the same place as the bill.

MediPOS does not register you with FBR; you or your adviser do that on IRIS. Every field, test step and common error message is in the help centre guide to FBR POS integration.

A short readiness list

• Confirm your Tier-1 status on IRIS or with your adviser.
• Register each outlet and POS, and note every POS ID.
• Choose between the online API and the Fiscal Component, based on your internet.
• Give non-medicine items their PCT codes and tax rates.
• Run test bills in the sandbox before going live.
• Tell your cashiers about the Re 1 line, so they can explain it to customers.

Common questions

Does FBR integration slow down the counter?

It should not. In MediPOS the bill is saved and printed first, and reporting happens straight after. When FBR is slow or out of reach, the invoice waits in the queue instead of the customer.

Is the Re 1 POS fee part of my sales?

No. The customer pays it on top of the bill and it is owed to FBR, so it should not count in your sales or profit.

Can I integrate if my shop's internet is unreliable?

Yes. FBR accepts invoices sent later, and the Fiscal Component forwards them when the connection returns. Pick the method that suits your line, and make sure your software queues invoices by itself.

We are not Tier-1. Should we switch it on anyway?

There is no need. Leave it off. In MediPOS nothing changes for a pharmacy that keeps it off, and you can switch it on if your status changes.

Related reading

• FBR POS integration for pharmacies: the setup guide
• Pharmacy settings, receipts and POS options
• Sale returns and refunds
• Pharmacy software checklist: 15 questions to ask