Choosing Inventory Methods in Qoyod: Periodic vs. Perpetual Inventory and Its Accounting Impact

Clarification: Does Qoyod work according to periodic inventory or perpetual inventory? In Qoyod, you have the freedom to choose the inventory type for each product according to your needs

First: When defining a new product

• If you want the product to be included in perpetual inventory

  • Enable the Product is inventory option when creating the product

• If you want the product to be included in periodic inventory

  • Do not enable the Product is inventory option

Second: For existing products

• You can change the product status from “Not inventoried” to “Inventoried” provided that:

  • There are no previous financial transactions on it, such as sales or purchase invoices

• Steps to modify:

  1. Open the Products and Costs menu

  2. Click on Edit next to the product

  3. Modify the status

  4. Save the changes

• If the product has previous movements and you cannot change its status:

  • Create a copy of the options for the product, select the required status, and then save

  • Then archive the old product

Third: The accounting difference between the two statuses

• Product in “Inventoried” status (perpetual inventory):

  • At purchase: The system calculates the quantity within inventory

  • At sale: The system transfers the product value from the inventory account to the cost of goods sold account

• Product in “Not inventoried” status (periodic inventory):

  • At purchase: The system records the value directly as an expense

  • At sale: There is no accounting impact regarding inventory

Additional notes

• It is important to select the appropriate status from the beginning for each product

• Any error in the selection will affect the financial statements and reports