About perpetual inventory tracking
Craftybase is perpetual inventory software. Perpetual means that we calculate your stock on hand and inventory value constantly and in real-time.
Our software differs from spreadsheets or basic accounting programs that calculate only when you manually stocktake, these are called periodic systems.
All stock changes in a perpetual system are recorded as stock adjustments. An increase in stock is a positive adjustment and a decrease is a negative adjustment. You won't need to add these directly most of the time - adjustments in the right direction will be added automatically for you based on the actions you take. Adding an order, for example, will automatically create negative adjustments for the products you have sold.
| Date | Reason | Product | Change | Cost |
|---|---|---|---|---|
| 1 Jun | Manufacture | Large Blue Bag | 3 | $13.47 |
| 14 May | Order | Large Blue Bag | 1 | $12.27 |
| 7 May | Order | Large Blue Bag | 1 | $12.14 |
Your entire stock history of adjustments is then used by Craftybase to calculate your stock and costing for materials and products in your inventory at any moment in time.
As another example, material stock levels are calculated in the following manner:
All stock costs are calculated using
rolling (moving) averages as this provides you with highly accurate tax-ready inventory valuations for your COGS.