Inventory Systems: Perpetual vs Periodic
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- เผยแพร่เมื่อ 14 พ.ค. 2024
- 💥Perpetual vs Periodic Cheat Sheet → accountingstuff.com/shop
In this video you'll find out what Perpetual and Periodic Inventory Systems are, and how they differ from one another. We'll cover the Pros and Cons of each before diving into an Accounting example. This episode is part of a mini-series exploring Inventory in Accounting. You can find the link to the whole playlist here ⬇️
🔗Full Inventory Playlist → • Accounting for INVENTO...
🔴Subscribe for more Accounting Tutorials → geni.us/subtothechannel
⏱️TIMESTAMPS
00:00 - Intro
00:43 - Inventory Definition
00:50 - Perpetual Inventory System Definition
01:00 - Periodic Inventory System Definition
01:24 - Advantages of a Perpetual Inventory System
01:41 - Disadvantages of a Perpetual Inventory System
02:10 - Advantages of a Periodic Inventory System
02:16 - Disadvantages of a Periodic Inventory System
02:37 - Inventory Systems Worked Example - Question
03:33 - Inventory Calculation
04:40 - Inventory Systems Worked Example - Solution
11:50 - Final Comparison
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Genuinely infuriating that this guy can explain a topic better in a 12 minute video than an actual lecturer you pay for can in a 2 hour lecture
exactly. I've been so frustrated after every accounting lectures lol
Guy works hard to creatively create a easily digestible way of understanding concepts.
Lecturers just monologue at you for hours.
I've started coming to this channel before my textbook
You can say that again
So damnnnnnnnn true
I go to college; in class I could literally sit and take notes and pay attention for an hour and I'll feel so lost. After i watch your videos i feel so much better and actually understand how you teach things. I would be failing my class if you didnt make videos. no joke
Even my accounts teacher uses your videos to explain this to us.
Thank you so much!
Cheers Muhammad, hope you're finding them helpful :)
@@AccountingStuffHello, please may I have your email address? Thank you.
I'm a student from Bangladesh, as schools are closed due to Covid-19 and lockdown imposed by the government; It's hard to study everything on my own. So I was searching on TH-cam for Accounting Contents but there is a dearth of quality content. That's when I found your channel! Your contents are so good, thanks a lot.
It's depressing to see such a first-rate channel with so low number of subscribers :(
Please continue to make these videos...
And thanks again Mr. Superaccountant!
Hey there! Sorry to hear that you're still in lockdown. Hope you're keep safe & well :)
Do you have free school in Bangladesh or do you need to pay fees for school, have a job for maintaing a rent and uitility bills and food and rest of cost of living? Do you need to loan money from the Gouverment in case you dont have a job to substitute your costs of living? Or do you can work online free and live out in the streets?
Wow! This channel is the holy ground in the Universe of Accounting. Congratulations James! You rock! It's 10 out of 10.
Damn and I just had my last accounting exam yesterday and this section made up a huge part of the paper. Thank you for the awesome vid which sums up a quarter of a semesters learning in 12 mins🙏🙏
No worries Tremain, hope the exam went well!
I have dreamed all the time for having a teacher like you, never thought someone like you existed, so happy to find you here! Will always follow you:)
Thank you, my man! I appreciate your easy explanation on inventory systems for Intermediate Accounting 2!
this is a neat channel. you make my life better. thanks for making these 😀
Cheers Tim!
Congratulations James! Absolute clarity delivered so efficiently. I have been taught by many - some with the title of professor - you leave them all for dead!
Thanks for your kind words!
As someone who switched from Computer Science to Accounting, those data structure and algorithms classes helped tremendously with FIFO and LIFO accounting since they’re essentially a method for extracting and filling a data structure with ordered elements(e.g. Arrays, Lists, etc)
FIFO = Queue and LIFO = Stack which are both fundamental to Object Oriented Programming.
same here
Those resemblances are beautiful👌🏻
James needs a massive sponsor and backing to help this amazing channel. My go to channel for any accounting topic
I literally was just googling this yesterday and here you are with a perfect video to sum it up!
No worries Kyra, I'm glad you stumbled across it!
You are awesome 😎 this is helpful to me..it's helping me through my basic accounting course! Keep on making them ...the more details the better
I swear you are the reason why I love accounting so much. You just make it so easy to understand and I genuinely love to listen and watch your videos keep it up man.
Cheers Matt! Glad you're getting into it :)
same here thats wht im trying so hard too undestnd everry bit
From Saudi Arabia - these sessions have improved my understanding prior to the CMA exams. Thanks big time may God reward you double times
Seriously I am so happy I discovered your channel! Some of my accounting professors go through the material so fast and a lot of time I spend in the book just tying to comprehend on my own. Which I do pretty well but you make it a lot more easy and enjoyable! Keep up the great videos and you are going to be my go to while I’m currently in school studying accounting 😊
Hey Dani, it's great to hear that you're finding the vids helpful. All the best with your course!
This vid was amazing. I recently started an online tea business and my bookkeeping has been a mess. Thank you for your explanation. This was precise, clear, and to the point. Well done!
Accounting student from SA and I find these videos far more helpful than my actual study material!
excellent video to explain such complicated concepts with simple examples.
Thank you for your link with cheatsheets!! All IN!
Will be forever indebted to you for your concise, effective videos. Please do one for balance sheet recs (perhaps going through 1-2 real examples)
Cheers for your suggestion Sultana!
Great video! 🙌 It's so important to calculate inventory correctly, taking COGS into consideration! You can also use inventory management softwares with analytics tools.
I've learned so much in 12 minutes than what I've been learning for the past almost 3 months at school
Glad you found it useful! All the best with your studies :)
I wish I could do more than simply hitting the "like" button. Highly appreciated! Very informative video! Clear explanation!
There's honestly no need, if you learnt something then I'm happy
Hey man ! Your channel is growing fast , keep at it. I love the videos
Thanks Jeronimo, glad to hear you're enjoying the vids!
You rock! Thank you for your videos! i have watched so many
Always with the top quality content! Great job.
Cheers Hector, all the best!
Brilliant video, all ways easy to understand. A recommendation disposal of non current assests and depreciation.
Cheers Yosief, and thanks for the suggestions!
Your vids about accounting are always precise , clear, and to the point. Thank you James, love from Tamil Nadu, India. I subscribed.
Cheers and thanks for the sub!
YES YOU HAVE A VIDEO ABOUT THIS. I'm just starting my second unit in accounting and it's not making any sense. I was worried that there wouldn't be a video about this. Thank you as always!!
Hope it helps!
Yes ! I’ve been waiting for this !!! Thank you thank you!!
Cheers Jon, hope you find it useful
Insanely awesome video ..taught the topic with such ease, great work !!!
No worries, I'm happy to help!
Thank you so much James. This really means alot
Why am I spontaneously watching accounting vids on winter break when I couldve watched this (for extra help) last term 😂
Wow, that actually made sense. Thank you for explaining it so clearly.
Glad to hear it!
Wow thank you. It's an important topic. Could you make a video on Depreciation - straight line, double depreciation and unit based. Some challenging questions as well in this topic.
No problem Tushar, cheers for the suggestions!
@@AccountingStuff You can also talk a bit about bad debts too!
@@swaggyskye Thanks for your suggestion!
Thank you so much!! This is way better than any classes I've had at university.
Thanks Isabel!!
@@AccountingStuff welcome 🥰
I saw this video,thanks you so much ,lt is really good for my work~
Hi James! Thanks for all these videos..Can you start posting again videos on accounts receivable and allowances.
Thank u sooooo much ! I just learned last week it's much easier for me to understand !!!!!!
Perfect timing!
Love your videos and the way you explain everything! :D keep going!!!
Thanks Laura!
dude you are awesome. Just in time for this school weeks topic.
No worries Kyle, hope it helps!
Great Video that James. Thank you! World Class as always.
Glad you enjoyed it
I see, you made me realize I use the Perpetual Inventory system in my business. Thank you.
No worries :)
Thank you so much, your videos help a ton, would really appreciate a video on contra, 😅struggling to get my head around it
Hey Lizzy, cheers for your suggestion :)
I took the exam yesterday,and it was nice.Thank you so much for your videos 😊
No worries, glad to hear the exam went well!
Your videos have impressed me!
Great job man.
Hope you make more and more videos 😊
--From India
Thanks, I plan to make many more :)
thanks for making these incredible videos! Not only are they incredibly informative, but you manage to make them fun as well!
I turned off my ad-block for your channel, is there any other way to support you? Maybe a patreon?
Thanks for the support, it's great to hear that you're enjoying the videos! I don't have a Patreon at the moment... perhaps I'll get around to it at some point.
great video James, i love your content!!
Thanks Muhammad!
This is really helpful! Thanks brother ❤️ looking forward for yr next vid
Thanks, I'm working on it as we speak
@@AccountingStuff Hehe 😉can you do accounting error vid also? ,
@@Mirzaarhmn Thanks for your suggestion!
Vary helpful
Hey this really help mee 😭 Thank youuu , love from malaysiaaa ❤️
Cheers Nadia, that's great to hear! All the best :)
You saved my degree. Genuinely appreciated😊
Best of luck with it! I hope you get the grades that you're after
thanks a lottttt, finally the words purchases and sales appeared
Glad you enjoyed it!
amazing explanation + amazing video editing = interesting video.
Cheers Makiya, glad you enjoyed it :)
This helps me so so much. Thank you very much 😊
Cheers Melissa!
I am still wondering how you can be that awesome. Imean, are you a teacher? because you totally nail it. You should be a tecaher cause you are amazing. Love your videos
you're the best thanks xx
Thank you so much for the great video!
No worries Kevin, you're welcome :)
just wanna say thank you so much honestly
Cheers Benjamin, hope your studies are going well!
Well explained thanks man
You're very welcome :)
nice this helped me during my accounting studies (now doing bachelors after i did a diploma in accounting).
Hope your studies are going well :)
Hey just wanna say I really love your channel! Could you please do a vid about bad debts would appreciate that!
Hey Sophie, cheers for your suggestion. I'd like to cover that at some point
Man your awesome. I have accounting exam on monday and our teacher is pretty cruel and fast. The way she teaches shes basically going on a train. Im a weak person in case of accounting and math and I never understood a single thing she would teach. But ever since I found your chanel i cannot even explain the happiness I feel right now. My final exams on monday and you have covered almost all the half course. Thank you so much. The only thing I wanna ask is please make videos on marketable securities and so on.
Great to hear it's clicking!! Best of luck in your exam on monday
Thanks so much! I understand better now.
Nice one! I'm glad it's making sense
i love you thanks for the explanation!
No problem!
Hi james, Thank you so much for putting this up. I am assuming the costly ERP softwares uses the Perpetual Inventory Accounting (consumption based accounting). Well in those cases when they do a purchase, they declare it as an Asset..Dr the Inventory Account but Cr the GR‐IR account instead of Cash or Accounts Payable. Could you help me understand the GR‐IR
Thanks !
Excellent...
Thank you for your video which is quite clear. Just one question, when we do period system, in step 2, debit purchasing should be considered as expense, is it? Thank you!
Hiii , I find your videos really interesting and helpful. Could you consider making a video on bad debts, Write offs and doubtful debts.
Hey Tushar, thanks for your suggestions!
I love this explanation ❤
Thanks, that's great to hear :)
u honestly make my life better, thank you :'>
No worries, I'm happy to help!
Great man , thank you a lot!
You're welcome :)
thank you - this is awesome
Cheers Victoria!
Thank you so much ❤🤍👌🏻
You're very welcome :)
Hey !
Can we record supplies as supplies in perpetual inventory system?
And if the transaction is in cash i.e purchased merchandise for cash, in perpetual inventory system... Then what can we write?
THANK YOU
Question, does these two can be used on manufacturing? or only for merchandising business only?
Outstanding!
Thanks!!
Hope to have “ ways of correcting errors in accounting” in your channel
Hey Kuek, cheers for your suggestion!
correcting inventory errors would be great
I like your methods..
Please carry on...
Cheers!
i didnt know i needed this, damn, thanks bro, are you a cpa?
I just wanted to know. you are a savior
Haha, thanks Sausthab. All the best!
I have always followed watching your video....and thanks.
And I would like to suggest a new video related to recording purchases of merchandise.
Thanks for your request!
@@AccountingStuff thanks a lot for always response to us.
@@seisopheapanya7528 No worries :)
I love your videos, can you please make videos about advance accounting too i.e IAS,IFRS and advance adjustments
Cheers Reshaeilov and thanks for your suggestions!
i hope more stuff will be done by you...do u have other channels. thanks for this playlist
I plan to release some more videos very soon
good stuff
Thank you so much!!!!
You're most welcome :)
Great video
Cheers :)
requesting you to make videos on GAAP and IFRS and also recommend some good books for the clarification of some concepts.
Thanks for your request!
Isn't there a purchases account for manufacturying firms too? Are these two accounts the same?
Thank u very much sir
Cheers Shav!
hey i just wanted to ask what did you mean when you said in previous videos "debits increase balances in the DEA(of dealer)
Hey Hamza, DEALER is a trick to help remember the normal debit and credit accounts. If you haven't heard of it before then I recommend watching this one. It's super useful... th-cam.com/video/5Y3wjH-6gHk/w-d-xo.html
Hi, where does the $450*8 come from? Thanks in advance
Can you help explain the actual practical interaction of ERP software with perpetual inventory? Will the system just record the movement of inventory so that you use that movement to calculate COGS or will it make the journal entries into the accounting system by itself?
Thanks for your request!
Inventory Ledger would be posting to which journal though if there are five type of Journal namely Sales journal, Purchase journal, General Journal, Cash Journal and Bank Journal by using perpetual method
what if you have a small service business and you don't track inventory. I just buy the parts from the supplier as I need them for my customers. is there anything bad about doing it this way? Using Xero all I do is reconcile the purchases as COGS. Is there an important reason that I'm unaware of that I should be using perpetual maybe? If I was a midsized business It would make more sense I think. Thanks
Hey, can you put another video on material cost controling techniques, especially VED analysis with practical examples.
Thanks for your request!
I have question could someone kind enlighten me about this.
Question: Considering that the beginning of the accounting period is January 1, 2020. If the ending inventory was mentioned in January 31, 2020 transaction, are you going to record the ending inventory or not yet? Why?
yeeey BIG THAAAANKS 💖
👍