Briefly describe the advantages and disadvantages of the two inventory quantity inventory method and its scope of application

The two inventory systems are: perpetual inventory system and field inventory system

1. perpetual inventory system, also known as the "book inventory system", is the increase or decrease in the property and materials must be based on the accounting vouchers, pen by pen or day by day in the books of the relevant books of account for continuous registration, and at any time to settle out the balance of the material A method of settlement of the material balance at any time.

That is: the closing balance of the book = the opening balance of the book + the number of revenues in the period - the number of issued. Advantages: can always understand the various inventory of property and materials income, issued and balance, in favor of strengthening the management of inventory materials. Favorable to identify the causes, clear responsibility, timely correction. Disadvantages: the inventory of property and materials of the detailed classification of accounting workload is larger Scope of application: the scope of application, except for a few special circumstances are generally used in the perpetual inventory system. Note: Using this method, may also occur account discrepancies, such as deterioration, damage, loss, etc., so it is still necessary to carry out a variety of property and materials inventory count to find out whether the account is consistent with the account and the reasons for the discrepancy.

2. field inventory system, also known as the "regular inventory system", is the property and materials, usually in the books only register the number of increases, do not register the number of decreases, the end of the month, according to the field inventory of the number of inventories in order to reverse the number of decreases in the month's property and materials, and then based on the registration of the relevant books of a method. That is: the number of issued = the opening balance of the book + the number of income for the period - the actual balance at the end of the period Advantages: Detailed classification accounting is relatively simple. Disadvantages: Can not always reflect the inventory of property and materials of the book balance of the number and amount, is not conducive to the management and control of property and materials inventory. It is not possible to distinguish between the issuance of property and materials and natural wear and tear and liability errors, embezzlement and theft. Cannot adapt to the needs of account processing at any time to carry forward. The scope of application is very small, the unit is generally not used.