Periodic or perpetual accounting method
Requirement
Accounting for purchases of inventory can follow the perpetual accounting method or the periodic accounting method:- If perpetual accounting is used, then the balance sheet is directly updated with purchases.
- If periodic accounting is used, then the profit and loss account is the first account updated with purchases in the period.
In this country, periodic accounting is mostly used for legal
reporting, but perpetual accounting is allowed.
M3 solution
To meet the preferred accounting preference of customers, this internal accounting rule can be set at the entity or division level.
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| CAS900/E | Settings - Cost Accounting | We recommend that you set the 010 – Inventory System parameter to 2-Periodic inventory system. |