Posted By:Krishna Jani
Updated: 19 July, 2023Published: 13 July, 2023
Reading Time: < 1 minute

The periodic inventory system, as its name implies, keeps track of the amount of inventory on hand on a periodic basis, specifically at the start and end of a predetermined accounting period. Every purchase made in between inventory counts is accounted for under the purchases account during periodic inventory. The remaining balance in the purchases account is transferred to the inventory account when the subsequent physical inventory is completed in order to match the cost of ending inventory.

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