Perpetual Inventory

Perpetual Inventory

Materials constitute the most significant element of cost in case of products. Physical movements and accounting entries have to go hand in hand. The quantitative controls on materials can be kept through a strong perpetual inventory system which accounts for physical stock at any given point of time, the process losses, scrape, wastages etc. accounting, the objective being to reconcile the quantitative aspects. The perpetual inventory is carried out based on inventory classification like ABC on periodic basis such as daily, weekly, monthly as per client requirements. This obviates the necessity of year-end stock taking and provides a dependable system.