Why Might A Company That Uses A Perpetual Inventory System Still Do A Physical Count Of Inventory At The End Of The Year? Companies that use a perpetual system employ cycle counting to maintain the accuracy of inventory records. … If the bill of materials does not pull a correct quantity of raw materials from
What Is A Perpetual Inventory Record? Perpetual inventory is a continuous accounting practice that records inventory changes in real-time, without the need for physical inventory, so the book inventory accurately shows the real stock. Warehouses register perpetual inventory using input devices such as point of sale (POS) systems and scanners. What is perpetual inventory example?
What Is Special About A Physical Inventory? Detailed physical inventory counts are a way of ensuring that a company’s inventory management system is accurate and as a check to make sure goods are not being lost or stolen. A physical count of a company’s entire inventory is generally taken prior to the issuance of a