What is perpetual inventory system?

Business & Management
#1

In a perpetual inventory system, every time a shipment comes in or a product is sold, the inventory is updated. At any point in time, you can see the value and composition of inventory.

A perpetual inventory systems, is like having a real-time video stream of your stock levels. Perpetual systems capture each inventory movement — meaning purchases, sales, stock adjustments, and stock transfers.