Which inventory tracking method provides a real-time count as items are added or sold?

The perpetual inventory tracking method is designed to provide a continuous and real-time count of inventory levels. As transactions occur—whether items are added through purchases or removed through sales—the inventory records are updated instantaneously. This method relies on sophisticated software systems that keep an ongoing tally of stock on hand, reflecting any changes immediately.

In a retail environment, this real-time update is crucial for maintaining accurate stock levels, allowing businesses to promptly assess inventory availability, manage reorders, and avoid stockouts or overstock situations. Additionally, it supports better decision-making by providing reliable data on product performance and turnover rates.

Other inventory methods, such as the physical inventory method, require periodic counts that do not reflect real-time changes, while the periodic inventory method only provides updates at specific intervals. A point-of-sale system contributes to inventory tracking by recording transactions at the time of sale but is just one of the components that can facilitate a perpetual inventory approach.