Perpetual Inventory System Definition:
Perpetual inventory system may be defined as
a method of recording stores balances after every receipt and issue to
facilitate regular checking and to obviate closing down for stock taking."
So perpetual inventory system implies continuous maintenance of stock
records and in its broad sense it covers both continuous stock taking as
well as up to date recording of stores books. The balance of the same item
of store in bin card should correspond with that shown in the
materials or store ledger
card and a frequent checking of these two records should be made and
compared with the actual or physical quantity of materials in stock.