Inventory Systems: Perpetual vs Periodic

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  • Опубликовано: 22 дек 2024

Комментарии • 296

  • @jonnymanmac8426
    @jonnymanmac8426 4 года назад +468

    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

    • @skye-chor
      @skye-chor 4 года назад +29

      exactly. I've been so frustrated after every accounting lectures lol

    • @thedog5k
      @thedog5k 3 года назад +21

      Guy works hard to creatively create a easily digestible way of understanding concepts.
      Lecturers just monologue at you for hours.

    • @anthonygrimes1075
      @anthonygrimes1075 3 года назад +23

      I've started coming to this channel before my textbook

    • @lucynaivalu8673
      @lucynaivalu8673 3 года назад +1

      You can say that again

    • @AbdullahMeraj-mq8hw
      @AbdullahMeraj-mq8hw 2 года назад +2

      So damnnnnnnnn true

  • @Hefty_Joe
    @Hefty_Joe 2 года назад +33

    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

  • @sadmanprangon4425
    @sadmanprangon4425 3 года назад +27

    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 RUclips 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
      @AccountingStuff  3 года назад +6

      Hey there! Sorry to hear that you're still in lockdown. Hope you're keep safe & well :)

    • @Potencyfunction
      @Potencyfunction 8 месяцев назад +1

      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?

  • @mattbendijo5850
    @mattbendijo5850 3 года назад +6

    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.

  • @financewithtony
    @financewithtony 3 года назад +20

    Wow! This channel is the holy ground in the Universe of Accounting. Congratulations James! You rock! It's 10 out of 10.

  • @CKBREEZY7
    @CKBREEZY7 Год назад +2

    James needs a massive sponsor and backing to help this amazing channel. My go to channel for any accounting topic

  • @muhammadtaymour8668
    @muhammadtaymour8668 3 года назад +35

    Even my accounts teacher uses your videos to explain this to us.
    Thank you so much!

    • @AccountingStuff
      @AccountingStuff  3 года назад +3

      Cheers Muhammad, hope you're finding them helpful :)

    • @lindaruhinda9168
      @lindaruhinda9168 3 года назад

      @@AccountingStuffHello, please may I have your email address? Thank you.

    • @TylerCarroll
      @TylerCarroll Месяц назад

      Sounds like a good teacher!

  • @LGNDunlop
    @LGNDunlop 4 года назад +12

    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!

  • @bawol-official
    @bawol-official 2 года назад +15

    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.

  • @treemane0
    @treemane0 5 лет назад +91

    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
      @AccountingStuff  5 лет назад +2

      No worries Tremain, hope the exam went well!

  • @timsiwula5734
    @timsiwula5734 4 года назад +45

    this is a neat channel. you make my life better. thanks for making these 😀

  • @ngudjohn4699
    @ngudjohn4699 Год назад +1

    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!

  • @danielle228512
    @danielle228512 5 лет назад +22

    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
      @AccountingStuff  5 лет назад +2

      Hey Dani, it's great to hear that you're finding the vids helpful. All the best with your course!

  • @noen7391
    @noen7391 3 года назад +3

    I've learned so much in 12 minutes than what I've been learning for the past almost 3 months at school

    • @AccountingStuff
      @AccountingStuff  3 года назад

      Glad you found it useful! All the best with your studies :)

  • @amralsabban3533
    @amralsabban3533 2 года назад

    From Saudi Arabia - these sessions have improved my understanding prior to the CMA exams. Thanks big time may God reward you double times

  • @suess8206
    @suess8206 2 года назад

    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:)

  • @kabirualli4362
    @kabirualli4362 2 месяца назад

    Thank you from Nigeria. We really appreciate your effort in producing high quality accounting videos.

  • @hobissprite928
    @hobissprite928 3 года назад +3

    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!!

  • @michellelaurensn8519
    @michellelaurensn8519 2 года назад

    Accounting student from SA and I find these videos far more helpful than my actual study material!

  • @kyrablitz3
    @kyrablitz3 5 лет назад +2

    I literally was just googling this yesterday and here you are with a perfect video to sum it up!

    • @AccountingStuff
      @AccountingStuff  5 лет назад +2

      No worries Kyra, I'm glad you stumbled across it!

  • @tusharvenkatramani1742
    @tusharvenkatramani1742 5 лет назад +22

    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
      @AccountingStuff  5 лет назад +4

      No problem Tushar, cheers for the suggestions!

    • @skye-chor
      @skye-chor 4 года назад +2

      ​@@AccountingStuff You can also talk a bit about bad debts too!

    • @AccountingStuff
      @AccountingStuff  4 года назад +1

      @@skye-chor Thanks for your suggestion!

  • @sultanafaqeerzada4573
    @sultanafaqeerzada4573 5 лет назад +4

    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)

  • @jeronimom1593
    @jeronimom1593 5 лет назад +3

    Hey man ! Your channel is growing fast , keep at it. I love the videos

    • @AccountingStuff
      @AccountingStuff  5 лет назад

      Thanks Jeronimo, glad to hear you're enjoying the vids!

  • @lauravarela8115
    @lauravarela8115 3 месяца назад

    Thanks!

  • @boxhero_official
    @boxhero_official 10 месяцев назад

    Great video! 🙌 It's so important to calculate inventory correctly, taking COGS into consideration! You can also use inventory management softwares with analytics tools.

  • @captainfoley
    @captainfoley 5 лет назад +2

    I took the exam yesterday,and it was nice.Thank you so much for your videos 😊

  • @muskasaleem7715
    @muskasaleem7715 3 года назад

    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
      @AccountingStuff  3 года назад +1

      Great to hear it's clicking!! Best of luck in your exam on monday

  • @jonl.8056
    @jonl.8056 5 лет назад +2

    Yes ! I’ve been waiting for this !!! Thank you thank you!!

  • @bjjgarage1378
    @bjjgarage1378 3 года назад

    I see, you made me realize I use the Perpetual Inventory system in my business. Thank you.

  • @saddestdayever1276
    @saddestdayever1276 2 года назад

    Thank you, my man! I appreciate your easy explanation on inventory systems for Intermediate Accounting 2!

  • @piluna2258
    @piluna2258 Год назад

    Wow, that actually made sense. Thank you for explaining it so clearly.

  • @Xoxooxoxoxooxoxo
    @Xoxooxoxoxooxoxo 5 лет назад +2

    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
      @AccountingStuff  5 лет назад

      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.

  • @isabelcatherinetravis4274
    @isabelcatherinetravis4274 3 года назад

    Thank you so much!! This is way better than any classes I've had at university.

  • @krisea3807
    @krisea3807 3 года назад

    Your vids about accounting are always precise , clear, and to the point. Thank you James, love from Tamil Nadu, India. I subscribed.

  • @letsglowwqueen
    @letsglowwqueen 2 года назад +3

    Hi James! Thanks for all these videos..Can you start posting again videos on accounts receivable and allowances.

  • @kylespade5958
    @kylespade5958 5 лет назад +2

    dude you are awesome. Just in time for this school weeks topic.

  • @jaimiechen7034
    @jaimiechen7034 2 года назад

    excellent video to explain such complicated concepts with simple examples.

  • @enen6221
    @enen6221 5 лет назад +6

    Why am I spontaneously watching accounting vids on winter break when I couldve watched this (for extra help) last term 😂

  • @Britas1030
    @Britas1030 4 года назад

    You saved my degree. Genuinely appreciated😊

    • @AccountingStuff
      @AccountingStuff  4 года назад

      Best of luck with it! I hope you get the grades that you're after

  • @HectorGarciaCPA
    @HectorGarciaCPA 5 лет назад

    Always with the top quality content! Great job.

  • @thamzhiyong3161
    @thamzhiyong3161 3 года назад

    nice this helped me during my accounting studies (now doing bachelors after i did a diploma in accounting).

  • @yinglinyu4365
    @yinglinyu4365 2 года назад

    Thank you for your link with cheatsheets!! All IN!

  • @mygelalvarez7729
    @mygelalvarez7729 2 года назад

    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

  • @yosiefrezene4141
    @yosiefrezene4141 5 лет назад

    Brilliant video, all ways easy to understand. A recommendation disposal of non current assests and depreciation.

    • @AccountingStuff
      @AccountingStuff  5 лет назад +1

      Cheers Yosief, and thanks for the suggestions!

  • @nadiaardini3613
    @nadiaardini3613 4 года назад +1

    Hey this really help mee 😭 Thank youuu , love from malaysiaaa ❤️

    • @AccountingStuff
      @AccountingStuff  4 года назад +1

      Cheers Nadia, that's great to hear! All the best :)

  • @chelmell895
    @chelmell895 Год назад +2

    On the time 8:30 the cogs equals 3600? I’m confused because 450units x $15 then it’s 450 units x $8? Why did you use $8 instead of $15 for cogs? Could someone please explain this? 🙏🙏

    • @redenpagal52
      @redenpagal52 3 месяца назад +1

      $8 - purchase price
      $15 - selling price

  • @kevv.1912
    @kevv.1912 10 месяцев назад +1

    thanks a lottttt, finally the words purchases and sales appeared

  • @jozsefszabo6157
    @jozsefszabo6157 Год назад

    Great Video that James. Thank you! World Class as always.

  • @gavp5248
    @gavp5248 3 года назад +2

    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?

  • @benjaminmolia593
    @benjaminmolia593 3 года назад

    just wanna say thank you so much honestly

    • @AccountingStuff
      @AccountingStuff  3 года назад

      Cheers Benjamin, hope your studies are going well!

  • @levyshi4551
    @levyshi4551 5 лет назад

    Thank u sooooo much ! I just learned last week it's much easier for me to understand !!!!!!

  • @swatisucharita1485
    @swatisucharita1485 4 года назад

    Insanely awesome video ..taught the topic with such ease, great work !!!

  • @Bhagyasri035
    @Bhagyasri035 3 года назад

    Your videos have impressed me!
    Great job man.
    Hope you make more and more videos 😊
    --From India

  • @makiyashoukat8807
    @makiyashoukat8807 3 года назад

    amazing explanation + amazing video editing = interesting video.

  • @avidshutterbugg9990
    @avidshutterbugg9990 2 года назад

    Thank you so much James. This really means alot

  • @Mirzaarhmn
    @Mirzaarhmn 5 лет назад +1

    This is really helpful! Thanks brother ❤️ looking forward for yr next vid

    • @AccountingStuff
      @AccountingStuff  5 лет назад +1

      Thanks, I'm working on it as we speak

    • @Mirzaarhmn
      @Mirzaarhmn 5 лет назад

      @@AccountingStuff Hehe 😉can you do accounting error vid also? ,

    • @AccountingStuff
      @AccountingStuff  5 лет назад +1

      @@Mirzaarhmn Thanks for your suggestion!

    • @ZakirKhan-oz2kx
      @ZakirKhan-oz2kx 4 года назад

      Vary helpful

  • @erikaespana7303
    @erikaespana7303 2 года назад

    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

  • @Brisket23
    @Brisket23 2 года назад

    You rock! Thank you for your videos! i have watched so many

  • @otakunutz9544
    @otakunutz9544 Год назад +2

    Question, does these two can be used on manufacturing? or only for merchandising business only?

  • @whimsy7706
    @whimsy7706 3 года назад

    u honestly make my life better, thank you :'>

  • @sausthabbirsinghtuladhar1729
    @sausthabbirsinghtuladhar1729 5 лет назад

    I just wanted to know. you are a savior

  • @cerisebelladonna4545
    @cerisebelladonna4545 5 лет назад +1

    Thank you so much, your videos help a ton, would really appreciate a video on contra, 😅struggling to get my head around it

  • @lauraserna4266
    @lauraserna4266 3 года назад

    Love your videos and the way you explain everything! :D keep going!!!

  • @EnthesKepas
    @EnthesKepas 7 месяцев назад

    I love this explanation ❤

  • @OMERAAZIZ
    @OMERAAZIZ 6 месяцев назад

    Thank you so much for your effort. Would you please make a video about Continental Vs Anglo-Saxon Inventory Valuation??

  • @melissahansen1808
    @melissahansen1808 3 года назад

    This helps me so so much. Thank you very much 😊

  • @tangtony1536
    @tangtony1536 4 года назад

    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

  • @jamesinabradshaw1799
    @jamesinabradshaw1799 4 года назад

    Thanks so much! I understand better now.

  • @WonderrOnYT
    @WonderrOnYT 4 года назад

    great video James, i love your content!!

  • @bambijr9220
    @bambijr9220 9 месяцев назад +1

    i love you thanks for the explanation!

  • @DennisSimplifies
    @DennisSimplifies 6 месяцев назад

    Thanks, James . I love your videos.
    Can you make videos on Suspense accounts and manufacturing accounts?
    I'd really appreciate it .
    Thanks in advance

  • @LSF315
    @LSF315 3 года назад

    Hoping that you can help here!
    Closing stock is valued at $1000 which then becomes the opening stock value.
    $50 worth of stock is brought in during the month but none of this is sold; this stock is charged to purchases. Why can we not simply increase the inventory and also decrease the purchases account?
    If during the next month, no stock is purchases but during this same month, $25 worth of stock is sold. At the end of this month, can we not credit inventories and debit purchases to transfer $25 from the BS to the PL?

  • @hollyma831
    @hollyma831 3 года назад

    I saw this video,thanks you so much ,lt is really good for my work~

  • @angelk2691
    @angelk2691 5 лет назад +6

    Hope to have “ ways of correcting errors in accounting” in your channel

  • @arjunarun9174
    @arjunarun9174 Год назад

    Isn't there a purchases account for manufacturying firms too? Are these two accounts the same?

  • @ryan6978
    @ryan6978 4 года назад

    8:48 Cost of good sold debit should write inventory instead of COGS right?

  • @SAIF_SALAMEH
    @SAIF_SALAMEH 11 месяцев назад

    Thank you so much ❤🤍👌🏻

  • @kiransen4975
    @kiransen4975 8 месяцев назад

    Well explained thanks man

  • @thomvanmuyen9232
    @thomvanmuyen9232 5 лет назад +1

    Do you have a clip about allowance from accounts receivable ?

    • @AccountingStuff
      @AccountingStuff  5 лет назад

      Hey there! Unfortunately I don't at the moment.

  • @tolong7739
    @tolong7739 Год назад

    Outstanding!

  • @tangtony1536
    @tangtony1536 4 года назад

    How perpetual system cater old stock item and new stock item where the stock item price changing. Normally all stock would mix up and how you gonna recognize which stock go first since there is no batch number to label for recognition of date of arrival of the stock.

  • @danjefferies2235
    @danjefferies2235 2 года назад

    But what happens when you do your stocktake and the inventory is different? Say some of the inventory was stolen, how do you account for that using both the methods?

  • @sunshineblues.
    @sunshineblues. 3 года назад

    I have question could someone kind enlighten me about this.
    Question: Considering that the beginning of the accounting period is January 1, 2020. If the ending inventory was mentioned in January 31, 2020 transaction, are you going to record the ending inventory or not yet? Why?

  • @sophien9203
    @sophien9203 5 лет назад

    Hey just wanna say I really love your channel! Could you please do a vid about bad debts would appreciate that!

    • @AccountingStuff
      @AccountingStuff  5 лет назад

      Hey Sophie, cheers for your suggestion. I'd like to cover that at some point

  • @tusharvenkatramani1742
    @tusharvenkatramani1742 5 лет назад

    Hiii , I find your videos really interesting and helpful. Could you consider making a video on bad debts, Write offs and doubtful debts.

  • @kevinweedman8391
    @kevinweedman8391 4 года назад

    Thank you so much for the great video!

  • @corysmith6868
    @corysmith6868 3 года назад

    what if you have a small service business and you don't track inventory. I just buy the parts from the supplier as I need them for my customers. is there anything bad about doing it this way? Using Xero all I do is reconcile the purchases as COGS. Is there an important reason that I'm unaware of that I should be using perpetual maybe? If I was a midsized business It would make more sense I think. Thanks

  • @seisopheapanya7528
    @seisopheapanya7528 3 года назад

    I have always followed watching your video....and thanks.
    And I would like to suggest a new video related to recording purchases of merchandise.

  • @juanwang3514
    @juanwang3514 4 года назад

    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!

  • @iamkelsey6100
    @iamkelsey6100 4 года назад +1

    Do you have steps that explain: Just in Time inventory system?

    • @AccountingStuff
      @AccountingStuff  4 года назад +2

      Hey Kim, I haven't covered that yet but cheers for suggesting it to me!

  • @rajg50397
    @rajg50397 11 месяцев назад

    thanx for give idea to solve my exam ❤❤❤

  • @KumR
    @KumR 2 года назад

    u mentioned FIFO LIFO average... What is STANDARD costing?

  • @makiyashoukat8807
    @makiyashoukat8807 3 года назад

    requesting you to make videos on GAAP and IFRS and also recommend some good books for the clarification of some concepts.

  • @tebatsomabusela877
    @tebatsomabusela877 4 года назад

    Hi James, what is the best inventory system to use for service companies?

    • @AccountingStuff
      @AccountingStuff  4 года назад

      Hey Tebatso, Service companies wouldn't typically hold inventory. Could you please give me some context?

  • @TheCc064
    @TheCc064 3 года назад

    Hi, where does the $450*8 come from? Thanks in advance

  • @danieljessin3519
    @danieljessin3519 3 года назад

    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 !

  • @sophiamillares126
    @sophiamillares126 4 года назад +1

    hello 🙂 what inventory systems does Allianz Arena use?

  • @wadethomas1043
    @wadethomas1043 3 года назад

    Thank you. How does this work when you make your own products. I find this complicates things much more fur to having multiple inventory accounts, i.e. Raw Materials, Finished Goods, etc.

    • @AccountingStuff
      @AccountingStuff  3 года назад +1

      The video covers Merchandising Inventory. For Manufacturing Inventory the process is slightly different. I'd like to cover it in another video

    • @wadethomas1043
      @wadethomas1043 3 года назад

      @@AccountingStuff awesome. Please do!

  • @brendenmoodley2914
    @brendenmoodley2914 4 года назад

    How would i record a deposit of X% on inventory that has not been received yet ,is it a prepaid expense?

  • @madinatanirbergenova4960
    @madinatanirbergenova4960 3 года назад

    Hey, I have a question. When u solve the periodic system in step 4, how do u find total 350 books ? I didn’t understand

    • @bryanr6227
      @bryanr6227 3 года назад

      All the books for sale are 800 in total. He sold 450 books. 800 - 450 = 350 books left in inventory.