Difference between Periodic and Perpetual Inventory System
Periodic Inventory System
A periodic inventory system is an inventory system that records inventory levels at specific points in time. These points in time are usually at the end of accounting periods. Periodic systems use physical count audits, where employees actually count each and every item in the store to get an accurate inventory level.
This amount is then compared to sales reports and purchase receipts to verify the amount of goods sold and to see if there are any discrepancies in numbers.