What is Perpetual Inventory? What are the advantages?

The perpetual inventory system is a system in which the daily increase or decrease of inventory must be continuously registered in the account books according to the accounting vouchers, and the balance of each inventory is settled on the books at any time and the actual inventory is regularly compared with the actual inventory to determine the profit and loss of inventory.

1. What are the differences between the perpetual inventory system and the regular inventory system?

1. The differences between the perpetual inventory system and the regular inventory system include:

1) The role is different. The perpetual inventory system can reflect the income, issuance and mold balance of each inventory at any time, and control both the quantity and the amount. The physical inventory system is that the accounting work is relatively simple and the workload is small;

2) The calculation formula is different. The physical inventory system is calculated as follows: the current period decrease is equal to the opening balance of the book plus the current period increase minus the actual closing balance.

2. Legal basis: Article 43 of the Civil Code of the People's Republic of China.

The custodian of assets shall properly manage the assets of the missing persons and preserve their property rights and interests.

Taxes, debts and other expenses due to the missing person shall be paid by the property custodian from the property of the disappeared person.

Where the custodian of property intentionally or grossly negligently causes losses to the missing person's property, they shall bear responsibility for compensation.

2. What is the scope of application of the perpetual inventory system and the physical inventory system?

The scope of application of the perpetual inventory system and the physical inventory system includes:

1. The physical inventory system refers to the fact that only the increase in inventory is registered in the relevant account books according to the accounting vouchers, and the decrease in inventory is not registered.

2. The perpetual inventory system is an inventory accounting method that calculates the book balance of inventory at the end of the period according to the account book records. In this way, the increase or decrease in inventory is recorded in the books of accounts on a continuous basis, and the book balance is kept at any time. In practice, except for a few special circumstances, the perpetual inventory system should generally be adopted for the accounting of inventory.

The perpetual inventory system is also known as the "book inventory system". It refers to an inventory method in which the additions and decreases of various physical properties must be registered in the relevant account books day by day according to the accounting vouchers, and the book balance must be settled at any time.

With this method of inventory, it is necessary to set up a quantity-type sub-account according to the item of the physical property and record it in detail, so as to reflect the income, issuance and balance of the physical property in a timely manner. Its advantages: it is conducive to strengthening the management of physical property; Disadvantages:

The daily workload is large.

The advantage of the perpetual inventory system is that it can understand the receipt, issuance and balance of inventory at any time, which is conducive to strengthening inventory management. The disadvantage is that it increases the daily accounting workload. Therefore, in practice, except for a few special circumstances, the perpetual inventory system should generally be adopted.

The perpetual inventory system, also known as the "book inventory system", is a management system that sets up detailed accounts for the property and materials of the enterprise unit at ordinary times, continuously records the increase and decrease of the changes according to the accounting vouchers and carries out the balance at any time, so as to provide a reliable basis for timely grasping the changes and balances of the property of the enterprise unit, so as to strengthen the management of the property and materials of the unit.

The characteristics of the perpetual inventory system.

The income and quantity of inventory should be continuously recorded in the inventory ledger according to the relevant accounting vouchers, and the book balance amount should be settled at any time, and the book balance amount of the inventory at the end of the period should be determined according to the cost calculation methods adopted by the accounting entity (such as the first-in-first-out method, the weighted average method, the mobile banquet average method, etc.).

Application of perpetual inventory system.

The perpetual inventory system can grasp the sending, receiving and closing of various inventories at any time, which is conducive to inventory management. In order to reconcile the book records of the inventory, the perpetual inventory system also requires a physical inventory of the inventory.

Inventory can be carried out regularly or irregularly, usually in the interval between production and business activities, part or all of the inventory is counted; At the end of the accounting year, a comprehensive inventory should be carried out, and an inventory table should be prepared to ensure that the accounts are consistent, and if there is any discrepancy, the reasons should be identified and dealt with in a timely manner.

The perpetual inventory system, also known as the book inventory system, is an accounting treatment method for setting up a detailed account of silver and sensitive goods, usually recording the number of inventories sent and received on a daily basis or on a daily basis, and settling its book balance at any time.

The physical inventory system, also known as the periodic inventory system, is an accounting treatment method that counts physical objects at the end of the period, determines the quantity of inventory, and calculates the inventory at the end of the period and the cost of consumption or sales in the current period.

The main advantage of the physical inventory system is that it simplifies the day-to-day accounting of inventories, but it increases the workload at the end of the period. Its main shortcomings are: First, it can not reflect the dynamics of inventory income and balance at any time, and it is not convenient for managers to grasp the situation; Second, it is easy to cover up the natural and man-made losses in inventory management.

Due to the cost countdown, the shortage caused by the loss of inventory that is not normally sold or consumed, errors, and even theft, etc., is included in the cost of issuing inventory, which covers up the transfer cost of warehouse management. Therefore, the practicability of the physical inventory system is poor, and it is only suitable for those materials or commodities with low value, miscellaneous varieties and frequent entry and exit (restaurants often use this method, because there is no choice according to the actual situation).

The advantage of the perpetual inventory system is that it is conducive to strengthening the management of inventory. In the detailed records of various inventories, the dynamics of receipts, issuances and balances of each inventory can be reflected at any time.

The reason for the surplus or shortfall can be ascertained by checking the actual inventory with the account balance in the account books and records in combination with the physical inventory from time to time; It is also possible to reflect whether there is too much or too little inventory at any time through the account book records, so that even if the supply of goods is reasonably organized, the capital turnover can be accelerated. The disadvantage of the perpetual inventory system is that the workload of inventory details is large, especially for enterprises with a wide variety of inventory specifications. At present, enterprises basically use this method, and I have not seen any enterprise use the physical inventory system.