Continuous inventory records
Continuous, or perpetual, inventory records update quantities and costs as receipts, issues and other inventory movements occur. They provide an ongoing inventory balance and support stock control. Physical counts remain necessary to identify losses, damage and recording errors. Periodic inventory systems instead establish closing quantities primarily through counts and calculate cost of sales for the period.
Worked example
A receipt adds 100 units to inventory records, and a sale removes 20 units, leaving a recorded balance of 80.
Common mistake
Perpetual records do not guarantee that 80 units actually exist: theft, wastage and unrecorded movements can create differences.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | F3 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: Perpetual inventory records