Inventory record can be treated on a perpetual or periodic basis. Perpetual inventory system is recorded based on a continuous record of change in inventory. In the inventory account, all purchases and sales of goods are recorded when they occur directly. Periodic inventory system records all inventories periodically. It means physical inventory count must be done at the end of the year.
Physical inventory counting will involve the counting process, listing, verification, pricing, footings, recapitulations, extensions and approval with accuracy and expedition. If there are three or more persons who are involved in the counting process, you should design the plan that consists of writing process and such ways as the following. Read more....
