Streamlining Inventory Management with Empress's Perpetual Inventory

Guides & Tutorials
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Introduction

In the world of business, keeping track of your inventory and expenses is of utmost importance. Empress’s Perpetual Inventory system is a feature designed to make this task easier and more efficient. This system maintains a constant record of your inventory, updating it with each purchase, sale or return of stock. By enabling the Perpetual Inventory feature, you can ensure that your inventory’s value is always up-to-date and accurately recorded.

Perpetual Inventory for Stock Items

When you make a Purchase Invoice for a stock item, the Perpetual Inventory system automatically creates a General Ledger Entry (GL Entry) detailing the transaction. For instance, if you purchase a stock item, the system will:

  1. Credit the ‘Creditors’ account with the total invoice amount.
  2. Debit the ‘Stock Received but not Billed’ account with the item’s cost.
  3. Debit the ‘Tax’ account with the tax amount.

This automated process ensures a seamless and accurate record of all your stock item transactions. However, it’s crucial to remember that the Perpetual Inventory system only applies to stock items.

Perpetual Inventory for Non-stock Items

Non-stock items are treated differently within the Perpetual Inventory system. Since these items are not part of your inventory, their expense is recorded immediately when the Purchase Invoice is submitted.

For non-stock items, the system:

  1. Credits the ‘Creditors’ account with the total invoice amount.
  2. Debits the ‘COGS / Other Expense Account’ with the item’s cost.
  3. Debits the ‘Tax’ account with the tax amount.

This differentiation between stock and non-stock items ensures an accurate and systematic record of all your transactions, helping your business maintain financial transparency and accuracy.

Conclusion

In summary, the Perpetual Inventory feature in Empress provides a comprehensive inventory management system, distinguishing between stock and non-stock items to ensure accurate and transparent record-keeping. By using this feature, your business can streamline its inventory management process, minimizing errors and enhancing efficiency. For more information or assistance with the Perpetual Inventory system, please refer to our Empress Help Center or contact our support team.