Perpetual Inventory

Perpetual Inventory

An accounting method of maintaining up-to-date property records that accurately reflect the level of goods on hand.

Notes:

The current balance of inventory is sustained daily by the addition of inventory to the account when goods are received and the deduction from the account when they are used. This method, as opposed to a yearly or monthly calculation, allows for a company to have more timely and accurate data on inventories.

See also: Carrying Cost of Inventory, Inventory, Inventory Turnover

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Perpetual inventory

Recordkeeping system in which book inventory is updated daily.