HELP CENTER

AutoCount Cloud Accounting currently support 2 types of inventory system:

   - Periodic Inventory System

   - Perpetual Inventory System

Please refer to the table blow on the differences:

Comparison	Periodic Inventory System	Perpetual Inventory System
Purchase	DR Purchase CR Creditor / Cash (no double entry for stock account)	DR Stock (Current Asset) CR Creditor / Cash
Purchase Return	DR Creditor CR Purchase Return	DR Creditor CR Stock
Purchase Discount (when treated as an item of Cost of Goods Sold)	DR Creditor CR Purchase Discount	DR Creditor CR Stock
Sale	DR Debtor / Cash CR Sales	DR Debtor / Cash CR Sales DR Cost of Goods Sold (Cost Value) CR Stock (Cost Value)
Sale Return	DR Sales Return CR Debtor	DR Sales Return CR Debtor DR Stock (Cost Value) CR Cost of Goods Sold (Cost Value)
Stock Adjustment	Perform stock adjustments in system, it will affect the value in Stock Balance Report, the adjusted stock value will then be used as periodical stock value and entered in Periodic Stock Value at the end of period. No double entry involved	DR Stock CR Increase in Stock Value Adjustment or DR Decrease in Stock Adjustment / Stock Loss CR Stock
Input of Stock Value	Obtain stock value from Stock Balance Report and key in the amount in Periodic Stock Value at the end of period	No action needed. The daily double entries have updated the value of Stock / Cost of Goods Sold instantly
When to input Stock Value	Periodically (monthly / quarterly / half-yearly or yearly) depending on reporting requirements	Stock value is determined / updated continuously whenever there is transaction involved stock movement
Cost of Goods Sold	Cost of Goods Sold is determined by how much on hand stock (closing stock) is left at the end of the period. The calculation will be displayed in Profit & Loss Account using figures from Periodic Stock Value and related ledger accounts:	Cost of Goods Sold Account is determined and updated continuously whenever there is transaction involves stock movement. It will appear in Profit & Loss Account as a ledger account:
Chart of Account	Acc Description Acc Type Opening Stock Cost of Goods Sold (special acc) Closing Stock Cost of Goods Sold (special acc) Balance Stock Current Asset (special acc) Purchase Cost of Goods Sold Purchase Return Cost of Goods Sold	Acc Description Acc Type Opening Stock Not needed Closing Stock Not needed Balance Stock Current Asset (normal acc) Purchase Not needed Purchase Return Not needed Cost of Goods Sold Cost of Goods Sold (normal acc)
Suitable for	Normally smaller business Business with small varieties of inventory, it is not easy to track cost value of each item movement When not using good accounting software with strong stock valuation functions Stock valuation is normally done with physical stock take Where valuation of stock is needed only occasionally or periodically	Normally larger business, or with multiple outlets Business with large varieties of inventory, it is easier to track cost value of each item movement When using good accounting software with strong stock valuation function Stock valuation is rather difficult without using inventory software Where valuation of stock is needed anytime / realtime