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 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?
Periodic inventory system is meant for companies who do not want to make large initial investments or do not have enough resources (labour or system) to implement 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 Inventory.com and do an initial physical stock taking. Inventory.com 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. Inventory.com 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 perpetual inventory system if you feel the need at one point.