Physical Stock Verification:

Physical stock verification in which bin cards and store ledgers are reconciled with the actual physical stock.

Physical stock verification is a process of inventory control, throughout this process entire stock is verified all at a time at periodic intervals and usually done in a year.

The physical stock count process is important for Wearhouse, stores that do not find a place in the perpetual inventory records. Like. WIP, spare parts, and consumable materials.

• The advantage of this method is that a thorough check of all the inventories materials is performed at a time and all the discrepancies are known collectively.

Perpetual Inventory Control:

The perpetual inventory’s main objective is to provide details regarding the quantity and value of each stock material after every physical movement.

Perpetual inventory control means recording store balances after every receipt and issue to facilitate regular checking and to disclose the closing balance of stock-taking.

This system will help the users in planning purchases, reduces possibilities of stock shortage, and reduction of waste.

• The advantage of this method is that the store not to be shut down for some time. Only minimum quantities are counted.

Physical Stock Verification System Vs Perpetual Inventory Control System