A perpetual inventory in accordance with Section 241 (2) of the German Commercial Code (HGB) is suitable for ensuring a precise overview of all inventories at all times. In this case, the inventory is recorded over the course of the fiscal year. The prerequisite for a perpetual inventory is a system that facilitates the recalculation and updating of warehouse stock receipts and issues.
The perpetual inventory begins with a physical inventory at a freely selectable time. However, strict standards are set for the records kept on an ongoing basis, since both a properly maintained stock ledger and verifiable documentation of all removals and additions must be available.
The stock levels of all individual goods are perpetually recorded in this inventory procedure by means of a stock card index. This gives you precise information on your inventory at all times. This stock card is created for each item at the beginning of the perpetual inventory. The type, quantity, and value of the individual items are noted. From this point on, all receipts and issues are documented in the stock ledger and recorded on the stock card.
In addition to the continuous book inventory, a physical inventory must also be carried out in the course of the financial year. However, in contrast to the annual inventory, you can freely choose when to do the physical stock counts for perpetual inventory. It is therefore advisable to plan for a favorable time, for example, when the stock or order situation is low or when there is hardly any customer traffic.
In summary, the advantage of perpetual inventory is that stock counts can be distributed over time and do not have to be taken simultaneously. The stocks are counted as part of the daily work routine, thereby reducing the enormous amount of time required for an annual inventory. A digital and mobile inventory with a scanner is perfect for practical implementation. The software makes it easy to carry out and minimizes the work involved in taking inventory.