What’s a periodic inventory system, and is it right for your team?

A quick guide on what the periodic inventory system is and how to use it.

Jonny Parker
February 22, 2024

Physical stores and eCommerce sites alike need well-stocked shelves and reliable delivery services to keep customers happy. Your company must maintain efficient business operations and sustainable finances to meet these needs, and proper inventory management plays a critical role.

Of the various inventory-tracking strategies available, the periodic inventory system is one of the most simple and widely used solutions. Paired with comprehensive and flexible inventory management software like Fishbowl, your team will have everything they need to streamline production and delivery processes while effectively balancing finances. 

What’s a periodic inventory system?

A periodic inventory system is an evaluation method that involves performing a physical stock count at specific intervals, such as quarterly, bi-annually, or annually. Under a periodic inventory system, you don’t perpetually update records. Instead, you record your cost of goods sold (COGS) when the designated period ends. 

After the physical stock count, you’ll track how much inventory