birgðabókhaldi

Birgðabókhald is the Icelandic term for inventory bookkeeping, the system and process used to record and manage an organization's stock of goods, raw materials, and finished products. Its primary purpose is to provide accurate, timely data on stock quantities and values to support operations, financial reporting, and decision-making. Inventory records may be maintained using perpetual or periodic approaches, depending on the business and the software in use.

Key elements of birgðabókhald include quantities on hand, locations, lot or serial numbers, unit costs, and total inventory value. Records are linked to the general ledger to support the inventory and cost of goods sold accounts. Organizations typically establish chosen valuation methods, such as first-in, first-out (FIFO), weighted average, or, in certain cases, specific identification, to determine the cost of goods sold and ending inventory.

Core processes involve recording stock receipts and issues, production consumption, transfers between locations, and sales or returns. Periodic or continuous physical counts are conducted to reconcile records with actual stock, with adjustments for damage, obsolescence, or shrinkage. Valuation and reporting requirements may also address impairment or write-downs when market or usability conditions change.

Controls and technology play a central role in birgðabókhald. Many businesses use integrated inventory management modules within ERP or accounting systems, often employing barcoding or RFID for tracking. Strong internal controls, regular reconciliations, and timely data entry help maintain accuracy and support reliable financial statements and inventory planning.