Perpetual Inventory System Law and Legal Definition

Perpetual inventory system is inventory method commonly adopted by large supermarket and stores. It refers to a system where information on inventory quantity and availability is updated continuously as part of a business transaction. Under this system a store’s computer will store the purchase list into inventory and scanning system and at checkout will subtract such items from inventory list as they are sold. This system helps to verify inventory accounts throughout a year. Perpetual inventory system is also called as the continuous inventory system.