What is meant by perpetual inventory

The perpetual inventory method is a way of accounting for inventory that records the purchase and sale of products.It aids in live monitoring and system upgrading to provide accurate shipping particulars and exceptional customer service.Whereas with a perpetual inventory system, all transactions, along with inventory costs and sales of merchandise get recorded immediately as they occur.These inventory ledgers contain information on the item's cost of goods sold, purchases and inventory on hand.A perpetual inventory system is a method of tracking and recording inventory and costs of goods sold on a continual basis, so a current inventory balance can be calculated in real time.

How does the perpetual inventory system work?Often requiring software to connect sales channels, warehouses and shipping carriers.In the past, both systems were widely spread.Perpetual inventory is the maintenance of accounts for inventory exactly as the purchase of inventory and sales of inventory happen.A perpetual inventory system continuously updates inventory levels as you buy and sell goods.

The perpetual inventory system involves the continuous updating of inventory records.This can be inconvenient to count, but allows the company to constantly maintain accurate data.