What is Perpetual Inventory System?

Today, system technologies are usually designed integrated. The integration enables more systems to access data from one to another. One of the best examples is when the inventory system accesses data from other information systems where it could be generated from various functions like purchasing, sales, and, etc. The real-time updates of data from restocking and sales make the inventory perpetual

Perpetual Inventory is not periodic inventory, because it provides real-time figures of stock quantity driven by sales and item restocking. The simple integration of this system may be composed of three (3) major components:

  • • Purchasing System – This component is where the purchasing officer updates the information about the purchases and their deliveries. The confirmed delivery automatically restocks the inventory by updating the item’s quantity. This system allows users to make purchase requests and purchase orders.
  • • Inventory System – This component allows the inventory manager to track the stocks and their quality. This provides real-time inventory reports using system data. The system also allows the staff to manage the stock to any necessary alignment action.
  • • Point of Sales / Item Releasing – This component allows the cashier or releasing officer to transact the item(s). The transaction automatically deducts the quantity from the inventory and provides reports useful from a sales perspective.

These components are the minimum integration that can be done to make the stock figures dependable. Of course, there are more opportunities to expand the system. This may be connecting it to an accounting system, property, supply, etc. Perpetual Inventory’s major objective is to give a real-time quantity and quality of stock in demand and to ensure that there is enough stock and the products are in their best condition to serve the customer better.

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