What Is Perpetual Inventory Method?
Perpetual inventory method is a system of tracking the movement of inventory in real-time, where every transaction involving inventory is recorded immediately and continuously. This method provides accurate and up-to-date information on stock levels, cost of goods sold, and inventory valuation. It involves the use of barcode technology, RFID, or other automated systems to keep track of inventory levels and identify changes in stock levels as they happen. The perpetual inventory method helps in reducing shrinkage, stockouts, and overstocking issues by providing real-time insights into inventory levels and movement.