Bin Card

Bin card is the statement of all the receipts and issue of the stock from the store department. It is also called stock card or bin tag. It is the responsibility of the store keeper to write every in and out of stock from the store. The physical stock count and the stock quantity reported according to the bin card should be equal; otherwise internal audit department will have the right to investigate the matter with management.

Bin card only contain quantity column for both and receipts and at the close of each transaction, the stock level is calculated to make sure that at every point of time, it can be reconciled with the physical count.

Inventory management is not an easy task. That is why, it is crucial to control the flow of the inventory using some effective tools. One of the best tool to exercise tight control over the inventory is the Bin Card. Not just it helps in controlling the inventory very well, it also helps in maintaning an effective working capital. By knowing the pattern of the stock movement, an entity can easily determine how much capital, it should invest in the purchasing of t he inventory and for how much quantity. As a result, better working capital policies can be developed that will improve the liquidity of the company.

Advantages of Bin Card

As bin card is maintained for each item of inventory, the store keeper is well aware about the stock position. On each bin card, he or she can write the minimum stock and maximum stock level so that in case, any item of inventory is touching minimum level, he or she can create a purchase requisition for the fresh supply of the stock. Bin card is an important inventory control technique and is used in various formats. There is no specific format for the bin card as organization can design their own stock card according to their requirements and reporting analysis.

Bin Card can be maintained in the Excel or can be taken as hard copy print out format that store incharge can use. For your comfort, we are including the Bin Card in the following format:

Bin Card Format in Excel | Bin Card Format Pdf

ABC Company

Specimen Bin Card Format

Bin card #:

Code #:

Material name:

Location:

Stores ledger folio:

Maximum stock level:

Minimum stock level:

Recorder level:

In charge:

Date

Receipts

Issues

Balance

Checked & Verified By

 

G.R.N

Qty

Requisition #

Qty

Qty

Date

Name

Initial

                 
                 

Difference between Bin Card and Stores Ledger

Bin Card

Stores Ledger

1. It is used only to record receipts and issues of quantity and the balance therein.

2. It is maintained by the store in-charge or store keeper.

3. It is kept inside the store department.

4. It is updated as and when receipts and issues are made in the store department.

5. Transactions are updated individually because at every point of time, store keeper needs to be aware of the actual position of the stock.

1. Stores ledger is used to record both quantity and the amount of receipts and issues.

2. It is maintained by the costing accounting department of the entity.

3. It is kept outside the store department ort at a place where store keeper has no a access.

4. It is updated when the costing department gets the proper documents from the relevant department normally from store department.

5. It is normally updated after a certain period and one entry is posted for similar items.

Example

Aqua logi in involved in the manufacturing of shoes for males and females. It stores department receives numerous items of raw materials from vendors; details of them are as under:

Date

Raw Material Name

Particulars

Document #

Quantity

1st Jan 2017

Air Mesh

Receipts

5674

5,000

4th Jan 2017

C4 Cartons

Receipts

3245

10,000

7th Jan 2017

C2 Cartons

Receipts

1234

12,000

15th Jan 2017

C4 Cartons

Issues

1111

4,000

20th Jan 2017

Air Mesh

Issues

1112

1,000

23rd Jan 2017

C2 Cartons

Issues

1113

8,000

27th Jan 2017

Air Mesh

Issues

1114

2,100

Required:

Prepare a bin card for the above inventory of raw materials.

Solution

There are three types of raw materials, that is, Air mesh, C4 and C2 cartons. We will have to make separate bin card for each of them.

Air Mesh Bin Card

Bin card #:001

Code #: AR-001

Material name: Air Mesh

Location: Store Location 01

Stores ledger folio: 01

Maximum stock level: 15,000

Minimum stock level: 1,000

Recorder level: 2,000

In charge: Mr. Alan

Date

Receipts

Issues

Balance

Checked & Verified By

 

G.R.N

Qty

Requisition #

Qty

Qty

Date

Name

Initial

1.1.17

5674

5,000

-

-

5,000

1.1.17

Samuel

Sam

20.1.17

-

-

1112

1,000

4,000

20.1.17

Samuel

Sam

27.1.17

-

-

1114

2,100

1,900

27.1.17

Samuel

Sam

 

As the level of inventory has reduced to 1,900 units which is less than the reorder level, Aqua logi must need to place a new order to the supplier/ vendor f or fresh delivery of the goods as soon as possible.

C4 Carton Bin Card

Bin card #:002

Code #: Car-001

Material name: C4 Carton

Location: Store Location 04

Stores ledger folio: 04

Maximum stock level: 20,000

Minimum stock level: 3,000

Recorder level: 4,000

In charge: Mrs. Susanne

Date

Receipts

Issues

Balance

Checked & Verified By

 

G.R.N

Qty

Requisition #

Qty

Qty

Date

Name

Initial

4.1.17

3245

10,000

 -

-

10,000

4.1.17

Peter

Pet

15.1.17

-

-

1111

4,000

6,000

15.1.17

Peter

Pet

C2 Carton Bin Card

Bin card #:003

Code #: Car-002

Material name: C2 Carton

Location: Store Location 05

Stores ledger folio: 05

Maximum stock level: 25,000

Minimum stock level: 5,000

Recorder level: 7,000

In charge: Mrs. Susanne

Date

Receipts

Issues

Balance

Checked & Verified By

 

G.R.N

Qty

Requisition #

Qty

Qty

Date

Name

Initial

7.1.17

1234

12,000

-

-

12,000

7.1.17

Peter

Pet

23.1.17

-

-

1113

8,000

4,000

23.1.17

Peter

Pet

 

The inventory level has fallen below the level of minimum stock level. It requires Aqua to place a fresh urgent order of this raw material as soon as possible. This also highlights the bas planning of raw materials because the inventory level should not fall below the minimum stock level. Suppliers take some time to produce the goods. Bin Card works as a great tool in exercising an effective control over the inventory management.

Stock Damage or Lost - It is quite common thing in manufacturing concern.  From time  to time, stock or inventory items may get damaged. So, there is a dire need to investigate the matter. If the nature of loss is normal, then a written approval for the write off the i nventory is necessary. Store Keeper has to make an entry for the specific item of inventory in order to make sure the physcial count matches with the bin card records. In this case, the f ormat of Bin Card will have to be updated with the loss/ damage column. Proper signing is necessary to do such updation in the bin card. 

Bin Card Format for Lost/ Damaged Inventory

Bin card #:

Code #:

Material name:

Location:

Stores ledger folio:

Maximum stock level:

Minimum stock level:

Recorder level:

In charge:

Date

Receipts

Issues/ Losses

Balance

Checked & Verified By

 

G.R.N

Qty

Requisition #

Qty

Qty

Date

Name

Initial

                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
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