With the permanent inventory method, goods are physically recorded only once a year.
In comparison to the closing date inventory, not all goods have to be recorded at the same time. The only important thing is that at the end of the year each item is physically recorded at least once. A prerequisite for the permanent inventory is a precisely kept stock book and a precise control of all inward and outward movements.
The advantage of this method is that the physical stocktaking can be carried out when there is little time pressure or when stock levels are as low as possible. The operational sequence can thus be continued undisturbed without a large-scale inventory more or less paralyzing everything.