Order Entry

How to Read a Prescription (and the Stock Label Next to It)

By the RxReflex Content Team · Last reviewed August 6, 2026

Every prescription has the same skeleton: the inscription (drug and strength), the sig (directions), the subscription (quantity to dispense), the refills, and a DAW code saying whether a substitution is allowed. Order entry is the process of moving those five fields into the system correctly — and it is 22.5% of the 2026 PTCE.

The five parts of a prescription

PartWhat it holdsExample
InscriptionThe drug name, strength, and dosage formLisinopril 10 mg tablet
SigThe directions — becomes the patient label1 tab PO daily
SubscriptionThe quantity to dispense#30
RefillsHow many times it can be refilledRefills: 5
DAW codeWhether a generic substitution is allowedDAW 0

Around those five you'll also find the prescriber's information (including a DEA number if it's a controlled substance), the patient's name and date of birth, and the date written. Any of those can be the thing that's wrong in an exam question.

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The question pattern

Order-entry questions are usually shaped as "what should the technician do FIRST?" The answer is almost never "dispense." It is verify, clarify, or escalate to the pharmacist — because a technician cannot make a clinical judgment call.

DAW codes 0 through 9

DAW stands for Dispense As Written. The code records why a brand or generic was dispensed, which is what the insurer prices against. Choosing the wrong one is a billing problem, not just a paperwork one.

CodeMeaning
DAW 0No product selection indicated — substitution allowed. The most common code by far.
DAW 1Prescriber says brand is medically necessary — no substitution
DAW 2Patient requested the brand
DAW 3Pharmacist selected the brand
DAW 4Generic out of stock
DAW 5Brand dispensed, priced as a generic
DAW 6Override (for example, a prior authorization)
DAW 7Brand mandated by law
DAW 8Generic not available (manufacturer shortage)
DAW 9Plan or insurer requested the brand

The two the exam leans on are DAW 0 and DAW 1. DAW 0 is the default and should be on the large majority of claims. DAW 1 requires the prescriber to have said brand is medically necessary — a patient asking for the brand is DAW 2, and coding that as DAW 1 misrepresents the claim.

The NDC number on the stock label

The National Drug Code identifies exactly what is in the bottle. It is 10 digits in three segments:

SegmentWhat it identifies
LabelerThe manufacturer or distributor — assigned by the FDA
ProductThe specific drug, strength, and dosage form
PackageThe package size and type

The FDA assigns segment lengths in one of three formats — 4-4-2, 5-3-2, or 5-4-1. For billing, the code is padded with a leading zero in the appropriate segment to a uniform 11 digits (5-4-2). That padding step is a common exam question, and a common real-world rejection.

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Why the middle segment matters

The product segment is where strength lives. Two bottles of the same drug at different strengths share a labeler code and differ in the product segment — which is exactly why "same drug, wrong strength" errors are caught by scanning, not by reading the front of the bottle.

Lot number, expiration, and the rest of the label

FieldWhat it's for
Lot numberThe batch ID. This is what a recall is issued against — it tells you whether your stock is affected.
Expiration date"EXP 06/2027" with no day means good through the last day of that month.
ManufacturerWho made it — matters for substitution and recall notices
StorageRoom temperature, refrigerated, protect from light
Bar codeThe scan that verifies the NDC at the point of fill

The expiration convention is worth memorizing precisely because it is counter-intuitive: a product marked EXP 06/2027 is usable through June 30, 2027, not June 1.

The order-entry workflow, in the order a technician does it

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Scope of practice

A technician may not clarify a clinical question with the prescriber on their own judgment, and may not decide a dose is fine. "Ask the pharmacist" is a real answer on this exam, not a cop-out.

Reading a prescription — FAQ

What are the parts of a prescription?

The inscription (drug, strength, form), the sig (directions), the subscription (quantity to dispense), the refills, and the DAW code. Prescriber and patient identifiers sit around them, including a DEA number on controlled-substance prescriptions.

What is the most common DAW code?

DAW 0 — no product selection indicated, meaning substitution is allowed. It belongs on the large majority of claims. DAW 1 is reserved for when the prescriber has specified that the brand is medically necessary.

What is the difference between DAW 1 and DAW 2?

DAW 1 is the prescriber requiring the brand. DAW 2 is the patient requesting it. They are billed differently, so using DAW 1 for a patient preference misrepresents the claim.

How many digits is an NDC number?

Ten digits in three segments (labeler, product, package), assigned as 4-4-2, 5-3-2, or 5-4-1. For billing it is padded with a leading zero to a uniform 11 digits in 5-4-2 format.

If a bottle says EXP 06/2027, when does it expire?

It is good through the last day of that month — June 30, 2027. An expiration with no day always means the end of the stated month.

What is a lot number used for?

It identifies the manufacturing batch. When a recall is issued it names specific lot numbers, so the lot is how you determine whether the stock on your shelf is affected.

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If a friend is stuck on DAW codes, send them this — the table alone is worth the tap.

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Practice order entry the way the exam asks it

RxReflex drills Order Entry & Processing as scenario questions — DAW selection, NDC checks, label reads — each with a rationale for every answer option. Premium unlocks the full scenario bank and the DAW-code and stock-label cheat sheets. Free to start on iOS and Android.

Keep studying

Prefer a printable version? Grab “The PTCB Pass Code” free PDF — the highest-yield facts, formulas & traps on 22 pages.

Last reviewed August 6, 2026 by the RxReflex Content Team. Educational use only — not medical advice. Exam policies and fees are set by PTCB — always confirm details at ptcb.org. Verify clinical specifics with your pharmacist or a current label source such as DailyMed. RxReflex is not affiliated with or endorsed by the Pharmacy Technician Certification Board (PTCB).