- This topic has 5 replies, 2 voices, and was last updated 9 months ago by
Kim Smith.
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abokor
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hello sir, hope u are doing good.
sir, if company uses continuous inventory count system, does it mean company counts all inventory at the wheelhouse regularly. HOW DOES IT WORK.
THANKS
Kim Smith
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abokor
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sir correct me if am wrong.
continuous inventory system and periodic inventory system need full inventory count once a year: periodic inventory system, count must be at the year end.
continuous inventory system regularly updates the records for movements of inventory and regular sample counts checks are part of internal control.
Thank u very much.
Kim Smith
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I seem to have confused you – let me clarify:
If records are perpetual (i.e. every movement in/out recorded) AND stock-checking is continuous (a control to check the accuracy of the records) – there is no need for any full count (at all/ever) as long as the checking shows the records to be accurate https://opentuition.com/topic/perpetual-inventory-count In this context “continuous” does not mean every minute of every day – but a sample of inventory items on a daily/weekly/monthly (regular “periodic”) basis covering all items during the course of a year.
abokor
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got it sir. thank u very much for ur help. I really appreciate it
Kim Smith
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You’re welcome!
abokor
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