Perpetual Inventory: Inventory Control

In this system, goods received or issued is immediately recorded on stocktaking sheet & compiled at the end of the day. In this system, at any given time you know the value of stock in hand. An individual card is required for each item. All figures are recorded, the balance figure on the card should agree with the actual count of the item in the storeroom. The following are the advantage of perpetual inventory

1. It indicates the reordering point.
2. It controls the overbuying and under buying.
3. It provides the constant inventory figure at glance.
4. Immediate comparison between actual and book value of items.
5. It indicates the slow-moving items