A system for tracking and dispensing medical items (830) includes one or more computers and associated data stores including information concerning authorized users, patients, medical items that have been prescribed for patients, medical items available, storage locations for medical items and events associated with receiving, dispensing and providing medical items to patients. The system also provides for tracking medications from time of receipt by a pharmacy, through storage and compounding therein, to the storage locations from which the medical items are taken to be administered, to dispensing to medical personnel for administration and finally to patients. Further, returning, restocking and other activities affecting the disposition of medications are also tracked to assure that reliable information is recorded concerning the disposition of medical items.