Glossary
Periodic inventory
It is a system where you only learn the balance after counting stock at the end of each period, not with every transaction.
What it means for a shop owner
It is simpler and cheaper but blind to gaps during the period. Cost of sales is worked out as opening stock plus purchases minus closing stock. It does not suit busy shops.
A worked example
Opening stock is 4000, purchases 6000 and closing stock 3000, so cost of sales is 7000.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes