a method of keeping up to date records on all inventory items by recording every time an item enters or leaves inventory
The book inventory calculated as a result of all issue, receipt and adjustment transactions, as opposed to verification by physical count
a book inventory kept in continuous agreement with stock on hand by means of a detailed record that may also server as a subsidiary ledger where dollar amounts as well as physical quantities are maintained; Sections of the stockroom are inventoried at short intervals and the quantities or amounts or both are adjusted, where necessary, to the physical count
In a perpetual inventory system, an up-to-date record of inventory is maintained and the inventory account is revised each time a purchase or sale is made (pp 152; 529)