Hospital drug management is an important part of hospital management, the new "Hospital Financial System" and "Hospital Accounting System" put forward higher requirements, they request accounting information can be objective, accurate, timely, so that they can for the management of hospital management and development of the hospital to make scientific and rational decision to provide important basis. Based on current status of hospital drugs management, analyzes the current medicine circulation process and the corresponding accounting treatment, and the method carries on the analysis summary, in the hope of future specification for hospital drug management, optimize accounting, improve the economic benefits of the hospital and provide reference for the management level.