Häufig gestellte Fragen
What is perpetual inventory?
With perpetual inventory, warehouse stock is physically counted not on a single reporting date but spread across the entire financial year. The basis is continuous inventory records by quantity and value that document every receipt and issue without gaps, so that the stock for the balance sheet date can be derived arithmetically. Each article must actually be counted at least once per financial year and reconciled with the book stock. In practice, the method is generally only feasible with a capable ERP or inventory management system.
What legal foundations apply to perpetual inventory?
Under German commercial law, perpetual inventory is regulated as an inventory simplification method in Section 241 (2) HGB and permits a physical stocktake that deviates from the balance sheet date. For tax purposes, the method is specified in R 5.3 of the German Income Tax Guidelines (EStR), which require, among other things, proper inventory records and the physical verification of each article at least once per financial year. No more than twelve months may therefore elapse between two physical counts of the same article. The entire procedure must also comply with the principles of proper accounting and be documented traceably.
What advantages does perpetual inventory offer over a reporting-date stocktake?
The most important advantage is that the laborious complete count on the balance sheet date is eliminated and ongoing operations are not interrupted by a multi-day warehouse shutdown. Because counting is spread across the year and carried out without time pressure, it tends to be more accurate and staff can be deployed more evenly. Differences between book and actual stock are detected earlier and can be investigated and corrected promptly, which permanently improves data quality. This is offset by greater organisational effort and the obligation to maintain continuously updated inventory records.
For which goods is perpetual inventory not permitted?
Under R 5.3 (2) EStR, perpetual inventory may not be used for particularly valuable assets. Also excluded are goods subject to uncontrollable shrinkage, for example because they spoil, evaporate or break easily. The background is that for such stocks the target stock cannot be reliably derived from the records. For these articles, a physical stocktake closer to the reporting date remains necessary, so mixed forms of different inventory methods are often used within one warehouse.
What recording and documentation obligations exist?
With perpetual inventory, all stocks and all receipts and issues must be recorded continuously in the inventory records by day, type and quantity and evidenced by documents. Count records must be kept for every physical stocktake, documenting the time, the stocks recorded and the persons who did the counting. Identified differences must be justified, documented and settled through correction postings. Since inventory documents are part of the accounting records, a retention period of ten years regularly applies to them, and the procedure should be described in procedural documentation in accordance with the GoBD.
Do auditors accept perpetual inventory?
Yes, perpetual inventory is a recognised method, provided all legal requirements are met and the procedure is documented traceably. Auditors and tax auditors pay particular attention to the completeness and propriety of the inventory records and to whether each article was physically counted at least once a year. They also examine how counting differences are handled and justified, as well as the procedural documentation. If this evidence is missing, the propriety of the inventory — and thus of the balance sheet — can be called into question.