This setting defines whether or not you are using a perpetual inventory system. If using a perpetual inventory, each storage location and its on-hand inventory will be considered when creating a requisition. Using this system will potentially slow down the requisition process but will ensure that an accurate stock record is kept. The storage location must be defined when an item is added to the requisition. By doing so, Inventory Connect will ensure that there is sufficient stock on hand at that location to satisfy the requisition. If the amount is insufficient, the on hand inventory may go into a negative quantity. To avoid negative quantities, the requisition will have to be adjusted, or the stock must be pulled from another storage location.

Not using a perpetual inventory system simplifies and speeds up the requisition process. Without perpetual inventory tracking enabled, you do not have to confirm the storage location from where items are pulled. You will not be notified if any of the requisitioned item quantities will result in a shortage. All items are automatically requisitioned from the primary storage location attached to the issue size chosen, and on-hand amounts will not be considered. If no storage locations are associated with the item’s issue size, inventory will be removed from a generic location called Unassigned.

All reports will work the same way and show the same information regardless of the perpetual setting chosen.