Keeping book inventory continuously in agreement with stock on hand within specified time periods. In some cases, book inventory and stock on hand may be reconciled as often as after each transaction, while in some systems these two numbers may be reconciled less often. This process is useful in keeping track of actual availability of goods and determining what the correct time to reorder from suppliers might be. Sometimes also called continuous inventory.
Related information about perpetual inventory:
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In business and accounting/accountancy, perpetual inventory or continuous inventory describes systems of inventory where information on inventory quantity ...
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Perpetual inventory systems show all changes in inventory in the "Inventory" account. Purchase accounts are not used in a perpetual inventory system.
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