Perpetual and Periodic Entry

Testing Perpetual Inventory: A Practical Case

A case was tested where Perpetual Inventory is disabled in the company. Stock in/out entries were performed using Purchase Receipt (PR), Stock Entry (SE), and Delivery Note (DN). In this scenario, no accounting entries are generated automatically.

All stock values had to be calculated manually, and a Journal Voucher (JV) was created to update the stock value. Please ensure the JV is accurate and finalized before enabling Perpetual Inventory.

Once Perpetual Inventory is enabled, the user will no longer be able to pass JVs that directly affect the Stock/Inventory account. Stock accounts will only be impacted through stock transactions. Hence, it's crucial to ensure that the stock ledger values are accurate before switching to Perpetual Inventory.