What term refers to the constant updating of inventory records?

The term that refers to the constant updating of inventory records is known as perpetual inventory. This system allows for real-time tracking of inventory levels by continuously updating records through software or manual entries each time there is a purchase or sale. As items are received or sold, the inventory counts are automatically adjusted, providing a clear and accurate reflection of stock levels at all times.

This method is particularly beneficial for businesses as it enhances inventory management, reduces the risk of stockouts or overstocking, and improves decision-making. The perpetual inventory system contrasts with periodic inventory methods, where updates occur at specific intervals rather than continuously. This real-time approach is essential for effective inventory control and operational efficiency in a range of settings.