Inventory/ Periodic Versus Perpetual

Inventory/ Periodic Versus Perpetual

Periodic Inventory System


Info
Info
Periodic inventory counts (such as once a month, or at the beginning and end of each year), and does not have an accurate record of the inventories in between these points
This system does not keep continuous, moment-to-moment records of inventories. Records are updated periodically – meaning, at certain points in time – when actual counts are done.

Perpetual Inventory System


Perpetual means continuous. This is a system where a business keeps continuous, moment-to-moment records of the number, value and type of inventories that it has.
OCi Accounting system – where each item of inventory is linked to the accounting entries – creates a perpetual system. Inventory levels are automatically decreased as soon as the invoice has been entered and completed at the till.

Advantages & Disadvantages

> Perpetual Inventory System
> Allow for Accurate Restocking
> Uncovers Shrinkage & Theft
> Accurate Interim Financial Statements
This method ensure real-time recording of stock movement, hence able to give a accurate report.

> Periodic Inventory System
> Simple Calculations
> Easy Record System
As stock is only adjusted during year-end, interim control is difficult and reports are outdated.
> OCi Accounting system adopt the moreaccurate Perpetual Inventory method

Modules With No Impact On Stock



Transactional Modules that have totally no impact on Inventory Stock Calculation:
> QUOTATION
> DELIVERY ORDER
> PURCHASE ORDER





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