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A periodic inventory system will not show the amount available for sale or sold during the period. A perpetual inventory system will show each purchase in the inventory.
In using the Periodic Inventory System, the cost of the goods sold are checked at the end of the period. With this, the system will not show the available amount for sale.
The perpetual inventory system is a method of accounting of inventory that records the sale or purchase of inventory in near real time, through the usage of computerized point of sale and enterprise asset management systems. It provides a detailed view of inventory changes.
Point of sale system (POS system)
deffeed
A periodic inventory system will not show the amount available for sale or sold during the period. A perpetual inventory system will show each purchase in the inventory.
A periodic inventory system will not show the amount available for sale or sold during the period. A perpetual inventory system will show each purchase in the inventory.
In using the Periodic Inventory System, the cost of the goods sold are checked at the end of the period. With this, the system will not show the available amount for sale.
The perpetual inventory system is a method of accounting of inventory that records the sale or purchase of inventory in near real time, through the usage of computerized point of sale and enterprise asset management systems. It provides a detailed view of inventory changes.
Point of sale system (POS system)
deffeed
periodic method
The periodic inventory system does not show the available amount for sale during the current period. It also does not show the amount sold during the current period.
The advantages of inventory management are to help you to reduce inventory holding thus increase your profit. Inventory data accuracy will be improved as all the incoming and outgoing stocks are recorded properly in the system. With proper inventory management, you can increase productivity by reducing the head counts and overtime.
It is suitable for fast-moving and slow-moving inventory.
Some examples of different types of databases are:Point of sale Inventory system (Till)Warehouse Inventory SystemElectronic Telephone BookAirline booking systemHotel Booking system
Periodic Inventory System Inventory account and cost of goods sold are non-existent until the physical count at the end of the year. Purchases account is used to record purchases. Purchase Return account is used to record Purchases Returns account. Cost of goods sold or cost of sale is computed from the ending inventory figure For goods returned by customers there are no inventory entries. Perpetual Inventory System Account and the balance of costs of goods sold and inventory account exist all the time. No individual purchases account but the purchases are recorded in the Inventory Account. No individual Purchase Returns account but the purchases return are recorded in the Inventory Account. Record cost of goods sold/cost of sale - inventory is reduced when there is a sale. Returns from customers are recorded by reducing the cost of goods sold and adding back into inventory.