Perpetual Inventory is a powerful method of tracking inventory management and sale of products that has gained popularity amongst large businesses. The Perpetual Inventory system continuously tracks item quantities on hand and is updated each time a sale is made with a point-of-sale (POS) system.

This type of inventory method differs from the periodic inventory system, which requires a set of periodic physical counts to ensure accuracy of the inventory system inventory levels. By implementing a perpetual inventory system, businesses are able to reduce both cost and quantity of periodic counts along with being able to reduce errors and eliminate the need for manual counting. A perpetual inventory system offers businesses, particularly large companies, the benefit of real-time data tracking. With this type of inventory, the values for each item’s on hand quantity, sales, cost and value are updated as the activity occurs and is immediately reflected in the inventory total in each area.

The system augments traditional inventory control and allows business owners to have a more accurate understanding of the value of the company’s inventory and the need to replace it. The system gives companies the opportunity to set up automatic stock replenishment and establish safety stock levels. Furthermore, with perpetual inventory, the need to reconcile shortages, damages and theft with physical product counts is minimized. This allows managers to easily identify and anticipate problems.

In conclusion, Perpetual Inventory allows businesses to maintain a more accurate view of their product inventory levels, leading to more efficient warehousing, more effective customer service and a generally improved inventory performance for any business. By tracking inventory in real time, companies will be able to make more informed decisions about product availability, pricing and purchasing. Perpetual inventory systems allow business owners and managers to better manage their inventories, automate the stock replenishment process, reduce discrepancies and errors, as well as enhance customer service.