Periodic Inventory Management

Periodic inventory management is a system where a business regularly counts its inventory at specific intervals, such as weekly, monthly, or annually, rather than keeping a constant real-time count. This count helps the business assess how much stock it has, identify losses or damages, and make informed decisions about purchasing and sales. During the counting period, records may not reflect exact stock levels. After the inventory count, businesses adjust their records to match the physical count, allowing for better financial and operational planning.