What is Bin Card?
Bin Card is a document that records the status of a goods held in the stock. This card is the record of stock quantity movement which is maintained by the storekeeper. In a Bin card individual transaction are recorded in quantity.
Bin Cards helps to monitor the total inventory process. This Card is Similar to library card that shows total movements of the library books and keeps the tracking of that books. Bin Card is issued to track the number of items held in a warehouse or stock rooms. Total received and issued of materials are exhibited in Bin Cards. Bin Card is used in a perpetual inventory system where the continuous taking of inventory occurs.
Advantages of Bin Cards
The advantages of Bin Cards are as follows:
- Bin Card minimizes the chances of mistakes because the entries will be made at the same time as goods are received or issued by the person actually handling the materials.
- Control over the stock can be more effective due to
continuous update and the balance of store ledger can be known at any time. - Bin Cards reduces the counting errors
- Different items identification of the materials is facilitated by reference to the Bin Cards the bin or storage receptacle.
Disadvantages of Bin Cards
- A large stores space is required where Bin Card is used
- As Cards are keeps without any protection, it can be damaged
- Maintaining Bin Cards can be more expensive
- Staffs who are maintaining Bin Cards cannot be properly trained up
- Issued or received materials may not posted due to negligence
Format of Bin Card
BIN CARD
BIN No………………… Minimum Quantity……………………
Code No……………….. Ordering Level…………………………….
Item/Material/Article……………….. Maximum Quantity………………………
Store Ledger Folio…………………….
| Date | Quantity Received | Quantity Issued | Balance | Remarks |
Prepared by………………………………. Checked by……………………..
Signature………………………………. Signature…………………………..