Inventory Systems: Perpetual vs Periodic
Рет қаралды 313,583
Күн бұрын💥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...
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⏱️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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#accounting #accountingbasics #accountingstuff
@jonnymanmac8426 4 жыл бұрын
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
@swaggyskye 3 жыл бұрын
exactly. I've been so frustrated after every accounting lectures lol
@thedog5k 3 жыл бұрын
Guy works hard to creatively create a easily digestible way of understanding concepts. Lecturers just monologue at you for hours.
@anthonygrimes1075 3 жыл бұрын
I've started coming to this channel before my textbook
@lucynaivalu8673 2 жыл бұрын
You can say that again
@AbdullahMeraj-mq8hw Жыл бұрын
So damnnnnnnnn true
@joewachter8257 Жыл бұрын
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
@muhammadtaymour8668 3 жыл бұрын
Even my accounts teacher uses your videos to explain this to us. Thank you so much!
@AccountingStuff 3 жыл бұрын
Cheers Muhammad, hope you're finding them helpful :)
@lindaruhinda9168 2 жыл бұрын
@@AccountingStuffHello, please may I have your email address? Thank you.
@sadmanprangon4425 2 жыл бұрын
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 KZfaq 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!
@AccountingStuff 2 жыл бұрын
Hey there! Sorry to hear that you're still in lockdown. Hope you're keep safe & well :)
@Potencyfunction Ай бұрын
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?
@treemane0 4 жыл бұрын
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🙏🙏
@AccountingStuff 4 жыл бұрын
No worries Tremain, hope the exam went well!
@bawol-official Жыл бұрын
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.
@adonayhaile9112 5 ай бұрын
same here
@Michael.design 4 ай бұрын
Those resemblances are beautiful👌🏻
@timsiwula5734 4 жыл бұрын
this is a neat channel. you make my life better. thanks for making these 😀
@AccountingStuff 4 жыл бұрын
Cheers Tim!
@financewithtony 2 жыл бұрын
Wow! This channel is the holy ground in the Universe of Accounting. Congratulations James! You rock! It's 10 out of 10.
@mattbendijo5850 3 жыл бұрын
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.
@AccountingStuff 3 жыл бұрын
Cheers Matt! Glad you're getting into it :)
@sapsalingpusacattalkmaykwe1556 2 жыл бұрын
same here thats wht im trying so hard too undestnd everry bit
@LGNDunlop 4 жыл бұрын
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!
@AccountingStuff 4 жыл бұрын
Thanks for your kind words!
@nandigoodjohn4699 9 ай бұрын
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!
@suess8206 Жыл бұрын
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:)
@danielle228512 4 жыл бұрын
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 😊
@AccountingStuff 4 жыл бұрын
Hey Dani, it's great to hear that you're finding the vids helpful. All the best with your course!
@noen7391 2 жыл бұрын
I've learned so much in 12 minutes than what I've been learning for the past almost 3 months at school
@AccountingStuff 2 жыл бұрын
Glad you found it useful! All the best with your studies :)
@kyrablitz3 4 жыл бұрын
I literally was just googling this yesterday and here you are with a perfect video to sum it up!
@AccountingStuff 4 жыл бұрын
No worries Kyra, I'm glad you stumbled across it!
@amralsabban3533 Жыл бұрын
From Saudi Arabia - these sessions have improved my understanding prior to the CMA exams. Thanks big time may God reward you double times
@saddestdayever1276 2 жыл бұрын
Thank you, my man! I appreciate your easy explanation on inventory systems for Intermediate Accounting 2!
@michellelaurensn8519 Жыл бұрын
Accounting student from SA and I find these videos far more helpful than my actual study material!
@CKBREEZY7 Жыл бұрын
James needs a massive sponsor and backing to help this amazing channel. My go to channel for any accounting topic
@tusharvenkatramani1742 4 жыл бұрын
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.
@AccountingStuff 4 жыл бұрын
No problem Tushar, cheers for the suggestions!
@swaggyskye 3 жыл бұрын
@@AccountingStuff You can also talk a bit about bad debts too!
@AccountingStuff 3 жыл бұрын
@@swaggyskye Thanks for your suggestion!
@jaimiechen7034 2 жыл бұрын
excellent video to explain such complicated concepts with simple examples.
@mygelalvarez7729 2 жыл бұрын
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
@sultanafaqeerzada4573 4 жыл бұрын
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)
@AccountingStuff 4 жыл бұрын
Cheers for your suggestion Sultana!
@jonl.8056 4 жыл бұрын
Yes ! I’ve been waiting for this !!! Thank you thank you!!
@AccountingStuff 4 жыл бұрын
Cheers Jon, hope you find it useful
@enen6221 4 жыл бұрын
Why am I spontaneously watching accounting vids on winter break when I couldve watched this (for extra help) last term 😂
@boxhero_official 3 ай бұрын
Great video! 🙌 It's so important to calculate inventory correctly, taking COGS into consideration! You can also use inventory management softwares with analytics tools.
@jeronimom1593 4 жыл бұрын
Hey man ! Your channel is growing fast , keep at it. I love the videos
@AccountingStuff 4 жыл бұрын
Thanks Jeronimo, glad to hear you're enjoying the vids!
@HectorGarciaCPA 4 жыл бұрын
Always with the top quality content! Great job.
@AccountingStuff 4 жыл бұрын
Cheers Hector, all the best!
@yinglinyu4365 Жыл бұрын
Thank you for your link with cheatsheets!! All IN!
@Codeclick 3 жыл бұрын
I wish I could do more than simply hitting the "like" button. Highly appreciated! Very informative video! Clear explanation!
@AccountingStuff 3 жыл бұрын
There's honestly no need, if you learnt something then I'm happy
@Brisket23 Жыл бұрын
You rock! Thank you for your videos! i have watched so many
@swatisucharita1485 3 жыл бұрын
Insanely awesome video ..taught the topic with such ease, great work !!!
@AccountingStuff 3 жыл бұрын
No worries, I'm happy to help!
@piluna2258 Жыл бұрын
Wow, that actually made sense. Thank you for explaining it so clearly.
@AccountingStuff Жыл бұрын
Glad to hear it!
@hobissprite928 3 жыл бұрын
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!!
@AccountingStuff 3 жыл бұрын
Hope it helps!
@yosiefrezene4141 4 жыл бұрын
Brilliant video, all ways easy to understand. A recommendation disposal of non current assests and depreciation.
@AccountingStuff 4 жыл бұрын
Cheers Yosief, and thanks for the suggestions!
@jozsefszabo6157 Жыл бұрын
Great Video that James. Thank you! World Class as always.
@AccountingStuff Жыл бұрын
Glad you enjoyed it
@krisea3807 3 жыл бұрын
Your vids about accounting are always precise , clear, and to the point. Thank you James, love from Tamil Nadu, India. I subscribed.
@AccountingStuff 3 жыл бұрын
Cheers and thanks for the sub!
@avidshutterbugg9990 Жыл бұрын
Thank you so much James. This really means alot
@isabelcatherinetravis4274 3 жыл бұрын
Thank you so much!! This is way better than any classes I've had at university.
@AccountingStuff 3 жыл бұрын
Thanks Isabel!!
@isabelcatherinetravis4274 3 жыл бұрын
@@AccountingStuff welcome 🥰
@levyshi4551 4 жыл бұрын
Thank u sooooo much ! I just learned last week it's much easier for me to understand !!!!!!
@AccountingStuff 4 жыл бұрын
Perfect timing!
@lauraserna4266 3 жыл бұрын
Love your videos and the way you explain everything! :D keep going!!!
@AccountingStuff 3 жыл бұрын
Thanks Laura!
@kylespade5958 4 жыл бұрын
dude you are awesome. Just in time for this school weeks topic.
@AccountingStuff 4 жыл бұрын
No worries Kyle, hope it helps!
@kevv.1912 3 ай бұрын
thanks a lottttt, finally the words purchases and sales appeared
@AccountingStuff 3 ай бұрын
Glad you enjoyed it!
@bjjgarage1378 3 жыл бұрын
I see, you made me realize I use the Perpetual Inventory system in my business. Thank you.
@AccountingStuff 3 жыл бұрын
No worries :)
@letsglowwqueen 2 жыл бұрын
Hi James! Thanks for all these videos..Can you start posting again videos on accounts receivable and allowances.
@captainfoley 4 жыл бұрын
I took the exam yesterday,and it was nice.Thank you so much for your videos 😊
@AccountingStuff 4 жыл бұрын
No worries, glad to hear the exam went well!
@WonderrOnYT 4 жыл бұрын
great video James, i love your content!!
@AccountingStuff 4 жыл бұрын
Thanks Muhammad!
@kiransen4975 Ай бұрын
Well explained thanks man
@AccountingStuff Ай бұрын
You're very welcome :)
@benjaminmolia593 3 жыл бұрын
just wanna say thank you so much honestly
@AccountingStuff 3 жыл бұрын
Cheers Benjamin, hope your studies are going well!
@hollyma831 2 жыл бұрын
I saw this video,thanks you so much ,lt is really good for my work~
@cerisebelladonna4545 4 жыл бұрын
Thank you so much, your videos help a ton, would really appreciate a video on contra, 😅struggling to get my head around it
@AccountingStuff 4 жыл бұрын
Hey Lizzy, cheers for your suggestion :)
@Mirzaarhmn 4 жыл бұрын
This is really helpful! Thanks brother ❤️ looking forward for yr next vid
@AccountingStuff 4 жыл бұрын
Thanks, I'm working on it as we speak
@Mirzaarhmn 4 жыл бұрын
@@AccountingStuff Hehe 😉can you do accounting error vid also? ,
@AccountingStuff 4 жыл бұрын
@@Mirzaarhmn Thanks for your suggestion!
@ZakirKhan-oz2kx 3 жыл бұрын
Vary helpful
@EnthesKepas 20 күн бұрын
I love this explanation ❤
@AccountingStuff 20 күн бұрын
Thanks, that's great to hear :)
@bambijr9220 2 ай бұрын
i love you thanks for the explanation!
@AccountingStuff 2 ай бұрын
No problem!
@melissahansen1808 3 жыл бұрын
This helps me so so much. Thank you very much 😊
@AccountingStuff 3 жыл бұрын
Cheers Melissa!
@Britas1030 3 жыл бұрын
You saved my degree. Genuinely appreciated😊
@AccountingStuff 3 жыл бұрын
Best of luck with it! I hope you get the grades that you're after
@makiyashoukat8807 3 жыл бұрын
amazing explanation + amazing video editing = interesting video.
@AccountingStuff 3 жыл бұрын
Cheers Makiya, glad you enjoyed it :)
@kevinweedman8391 4 жыл бұрын
Thank you so much for the great video!
@AccountingStuff 4 жыл бұрын
No worries Kevin, you're welcome :)
@nadiaardini3613 3 жыл бұрын
Hey this really help mee 😭 Thank youuu , love from malaysiaaa ❤️
@AccountingStuff 3 жыл бұрын
Cheers Nadia, that's great to hear! All the best :)
@jamesinabradshaw1799 3 жыл бұрын
Thanks so much! I understand better now.
@AccountingStuff 3 жыл бұрын
Nice one! I'm glad it's making sense
@Bhagyasri035 2 жыл бұрын
Your videos have impressed me! Great job man. Hope you make more and more videos 😊 --From India
@AccountingStuff 2 жыл бұрын
Thanks, I plan to make many more :)
@tolong7739 Жыл бұрын
Outstanding!
@AccountingStuff Жыл бұрын
Thanks!!
@Xoxooxoxoxooxoxo 4 жыл бұрын
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?
@AccountingStuff 4 жыл бұрын
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.
@muskasaleem7715 2 жыл бұрын
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.
@AccountingStuff 2 жыл бұрын
Great to hear it's clicking!! Best of luck in your exam on monday
@thamzhiyong3161 2 жыл бұрын
nice this helped me during my accounting studies (now doing bachelors after i did a diploma in accounting).
@AccountingStuff 2 жыл бұрын
Hope your studies are going well :)
@SAIF_SALAMEH 4 ай бұрын
Thank you so much ❤🤍👌🏻
@AccountingStuff 4 ай бұрын
You're very welcome :)
@jasimkhan1011 2 жыл бұрын
Excellent...
@modyhazem3931 4 жыл бұрын
Great man , thank you a lot!
@AccountingStuff 4 жыл бұрын
You're welcome :)
@victorialacey2124 4 жыл бұрын
thank you - this is awesome
@AccountingStuff 4 жыл бұрын
Cheers Victoria!
@badireducationalinitiative6703 4 жыл бұрын
I like your methods.. Please carry on...
@AccountingStuff 4 жыл бұрын
Cheers!
@sophien9203 4 жыл бұрын
Hey just wanna say I really love your channel! Could you please do a vid about bad debts would appreciate that!
@AccountingStuff 4 жыл бұрын
Hey Sophie, cheers for your suggestion. I'd like to cover that at some point
@erikaespana7303 2 жыл бұрын
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
@mahdrasta 4 жыл бұрын
you're the best thanks xx
@whimsy7706 2 жыл бұрын
u honestly make my life better, thank you :'>
@AccountingStuff 2 жыл бұрын
No worries, I'm happy to help!
@sausthabbirsinghtuladhar1729 4 жыл бұрын
I just wanted to know. you are a savior
@AccountingStuff 4 жыл бұрын
Haha, thanks Sausthab. All the best!
@tusharvenkatramani1742 4 жыл бұрын
Hiii , I find your videos really interesting and helpful. Could you consider making a video on bad debts, Write offs and doubtful debts.
@AccountingStuff 4 жыл бұрын
Hey Tushar, thanks for your suggestions!
@ashianaafrinisha2092 2 жыл бұрын
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?
@nothingspecial5988 3 жыл бұрын
Thank you so much!!!!
@AccountingStuff 3 жыл бұрын
You're most welcome :)
@himakumarikhanal803 2 жыл бұрын
Great video
@AccountingStuff 2 жыл бұрын
Cheers :)
@angelk2691 4 жыл бұрын
Hope to have “ ways of correcting errors in accounting” in your channel
@AccountingStuff 4 жыл бұрын
Hey Kuek, cheers for your suggestion!
@bonnieniedermayer2427 4 жыл бұрын
correcting inventory errors would be great
@andrewgowar8653 Жыл бұрын
THANK YOU
@chill_nrg5349 2 жыл бұрын
good stuff
@juanwang3514 3 жыл бұрын
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!
@danieljessin3519 2 жыл бұрын
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 !
@savhilrisekh1628 3 жыл бұрын
Thank u very much sir
@AccountingStuff 3 жыл бұрын
Cheers Shav!
@rajg50397 4 ай бұрын
thanx for give idea to solve my exam ❤❤❤
@AccountingStuff 4 ай бұрын
Happy to help
@otakunutz9544 Жыл бұрын
Question, does these two can be used on manufacturing? or only for merchandising business only?
@seisopheapanya7528 3 жыл бұрын
I have always followed watching your video....and thanks. And I would like to suggest a new video related to recording purchases of merchandise.
@AccountingStuff 3 жыл бұрын
Thanks for your request!
@seisopheapanya7528 3 жыл бұрын
@@AccountingStuff thanks a lot for always response to us.
@AccountingStuff 3 жыл бұрын
@@seisopheapanya7528 No worries :)
@TheAviari 4 жыл бұрын
i hope more stuff will be done by you...do u have other channels. thanks for this playlist
@AccountingStuff 4 жыл бұрын
I plan to release some more videos very soon
@grxlsshalom5526 Жыл бұрын
amazing gracias
@AccountingStuff Жыл бұрын
No problemo :)
@ksiannoy 4 жыл бұрын
Many many thanks
@AccountingStuff 4 жыл бұрын
You're very welcome :)
@gavp5248 3 жыл бұрын
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?
@AccountingStuff 3 жыл бұрын
Thanks for your request!
@reshaeilovmalezk7318 4 жыл бұрын
I love your videos, can you please make videos about advance accounting too i.e IAS,IFRS and advance adjustments
@AccountingStuff 4 жыл бұрын
Cheers Reshaeilov and thanks for your suggestions!
@idealca6634 Жыл бұрын
i didnt know i needed this, damn, thanks bro, are you a cpa?
@HamzaAhmed_1644 4 жыл бұрын
hey i just wanted to ask what did you mean when you said in previous videos "debits increase balances in the DEA(of dealer)
@AccountingStuff 4 жыл бұрын
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... kzfaq.info/get/bejne/a79jqs15kpzLeJ8.html
@makiyashoukat8807 3 жыл бұрын
requesting you to make videos on GAAP and IFRS and also recommend some good books for the clarification of some concepts.
@AccountingStuff 3 жыл бұрын
Thanks for your request!
@arjunarun9174 Жыл бұрын
Isn't there a purchases account for manufacturying firms too? Are these two accounts the same?
@czarpaliza6098 4 жыл бұрын
yeeey BIG THAAAANKS 💖
@AccountingStuff 4 жыл бұрын
👍
@berhanukebede5763 4 жыл бұрын
Good Man
@AccountingStuff 4 жыл бұрын
Cheers mate
@tangtony1536 3 жыл бұрын
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
Go Gizmo!
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