Periodic Inventory System Explained
What Is Periodic Inventory System?
A periodic inventory system is a solution for inventory management. Periodic inventory is suitable when there is no need for the daily track of inventory. It is harder to see if something is stolen, lost, or spoiled because the data is collected periodically. After a certain period, a physical inventory is performed, and the results are then compared with the data from the previous stocktaking. Between these periods purchases, cost of goods sold, and goods on hand cannot be checked. Usually, this information is not that necessary for company officials.
Who Should Implement It?
The periodic inventory system is meant for companies who do not want to make large initial investments or do not have enough resources (labor or system) to implement the more complicated method. Periodic inventory might be a solution for a start-up business who wants to start the sale as soon as possible. But sometimes it is the best choice for inventories consisting of large numbers of low-cost items.
How Inventory.com Helps Setting Up Periodic Inventory system?
First, you need to import your stock to erply.com and do an initial physical stock taking. Erply inventory management software offers you printable stocktaking lists and mobile, tablet or desktop software for this task. After the data is imported you are set and can start selling. Erply also allows you to track orders and integrate point of sale software. The next time you do stocktaking you can see the reports and export them to accounting software. And, it is possible to switch to a perpetual inventory system if you feel the need at one point.
Where to start?
Erply allows you to do all of this and more. We can get you on right track with inventory management.