perpetual inventory

Definition

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.

Use perpetual inventory in a sentence

You should try to make sure that you can fully keep up with your perpetual inventory so you are never out of stock.

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The perpetual inventory was really interesting to look at and I told my brother about it because he was interested too.

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The perpetual inventory nature of our large business simply required constant communication within the business to operate optimally,effectively, and transparently.

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perpetual floating-rate note perpetual inventory method