Accounts Receivable, net

3 Months Ended

Sep. 30, 2020

Accounts Receivable, net

Accounts Receivable, net

Note 5. Accounts Receivable, net

Accounts receivable, net consisted of the following components at September 30, 2020 and June 30, 2020:

	September 30,		June 30,
(In thousands)	2020		2020
Gross accounts receivable	$	284,751	$	271,557
Less: Chargebacks reserve		(70,437)		(61,877)
Less: Rebates reserve		(17,303)		(24,536)
Less: Returns reserve		(40,535)		(40,796)
Less: Other deductions		(16,597)		(17,557)
Less: Allowance for doubtful accounts		(1,083)		(1,103)
Accounts receivable, net	$	138,796	$	125,688

For the three months ended September 30, 2020, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $188.3 million, $34.3 million, $5.5 million and $15.8 million, respectively. For the three months ended September 30, 2019, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $207.9 million, $58.5 million, $3.7 million and $12.7 million, respectively.

The following table identifies the activity and ending balances of each major category of revenue-related reserve for the three months ended September 30, 2020 and 2019:

Reserve Category
(In thousands)	Chargebacks		Rebates		Returns		Other		Total
Balance at June 30, 2020	$	61,877	$	62,711	$	40,796	$	17,557	$	182,941
Current period provision		188,297		34,280		5,526		15,781		243,884
Credits issued during the period		(179,737)		(42,269)		(5,787)		(16,741)		(244,534)
Balance at September 30, 2020	$	70,437	$	54,722	$	40,535	$	16,597	$	182,291

Reserve Category
(In thousands)	Chargebacks		Rebates		Returns		Other		Total
Balance at June 30, 2019	$	89,567	$	78,274	$	55,554	$	18,128	$	241,523
Current period provision		207,933		58,509		3,694		12,705		282,841
Credits issued during the period		(214,017)		(61,952)		(5,256)		(11,724)		(292,949)
Balance at September 30, 2019	$	83,483	$	74,831	$	53,992	$	19,109	$	231,415

For the three months ending September 30, 2020 and 2019, as a percentage of gross sales the provision for chargebacks was 51.7% and 51.4%, the provision for rebates was 9.4% and 14.5%, the provision for returns was 1.5% and 0.9% and the provision for other adjustments was 4.3% and 3.1%, respectively.

The increase in the chargebacks reserve was primarily due to timing of sales and product mix. The increase in the chargebacks reserve was offset by a decrease in the rebates reserve primarily due to lower sales of Fluphenazine in the first quarter of Fiscal 2021, which had higher than average government-related rebates. Historically, we have not recorded any material amounts in the current period related to reversals or additions of prior period reserves. If the Company were to record a material reversal or addition of any prior period reserve amount, it would be separately disclosed.