# Perpetual inventory

> Perpetual inventory — Updating the inventory account with every purchase and every sale, so cost of revenue is recorded sale by sale; the periodic alternative works it out at period end from a count.

Source: https://lopifi.com/glossary/perpetual-inventory
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is perpetual inventory?** In accounting, perpetual inventory means updating the inventory account with every purchase and every sale, so cost of revenue is recorded sale by sale; the periodic alternative works it out at period end from a count.

## Words this system refuses for it

- live stock

- **Category:** Statements
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** cost-of-revenue, inventory, account, revenue, period