That’s the major part of it, the second part would be the matching of Inventory Cost to Sales Invoices, otherwise, we lose many of the reporting features such as assessing Profit per Customer.
Or just do this in the background without having to involve the user. This is an excellent idea
Yes please, periodic evaluation helped you fix some pertinent issues but it does not fit a perpetual accountng system as also mentioned in another topic. Hope that you succeed.
No there are real differences:
Perpetual: Provides real-time inventory data, offering more precise and timely insights into inventory levels, costs, and sales profitability. Perpetual revaluations are triggered by events like changes in cost prices, sales, or returns. When revaluation methods like weighted average (or FIFO) are applied, they impact the COGS and inventory values dynamically.
Periodic: Indeed simplifies accounting by reducing the frequency of updates, and is less costly to manage, as it doesn’t require real-time tracking. Periodic revaluation e.g., FIFO, LIFO, and weighted average are applied to calculate the ending inventory and COGS and is thus always behind the dynamic perpetual revaluation.