Bin Card also is known as Stock Card or Bin Tag, is the summary of inventory movement and the remaining balance. It is the movement that includes beginning balance, stock receipt, stock issue, and the ending quantity. It is very important for the warehouse to know how many stock remains just by looking at this report.
The stock keepers must write into the Bin Card every time the item move in or out of the warehouse, and it sticks to each material bin for quick access. It contains only the quantity in, out and the balance at a specific point, which reconciles with the physical balance otherwise it is useless.
The internal auditors may perform surprise count on inventory by comparing the actual quantity with a bin card. If there are any differences, it will lead to further investigation to understand the cause, whether it is due to error or fraud.
Bin Card Form
Advantage of Bin Card
Be aware of inventory level
It will help the stock keeper to keep track of each inventory or material level and propose any purchase if necessary. There is the minimum level of each material on the card bin which will help the staff to alert to their supervision.
Internal Control in warehouse
It will help the staff to identify the correct material quicker, it will be beneficial when all the items are very similar. The risk of issue wrong items also reduce.
Reduce the chance of miss record
Every new receipt or issue, the staff will require to update immediately in this report where it keeps next to the item. It will help to reduce the risk of error or forget.
Assist during the inventory count
During annual count, it will help the auditor and responsible person to identify the material from list to floor and vice versa. Moreover, it also helps the auditor to verify inventory quantity during the count as well.
Disadvantage of Bin Card
Require more time
The warehouse officers require to spend time on updating the bin card. Moreover, the staffs are able to check the stock level by checking the report rather than this card.
During the inventory receipt and issue, we require to update both in bin card and report (Excel or other control systems). And this report will be used during the counting which is more reliable.
Require warehouse space
The bin card will take warehouse space which can use for storing other items. The more detail we require, the more space it takes.
Bin Card Vs Store ledger
|Record the movement balance include receipt, issue and the remaining balance at any specific time
|Store ledger keeps track the movement of inventory includes its value.
|It is kept by the Stock keeper in the warehouse next to the actual inventory.
|This report keeps by the cost accountant.
|The stock keeper requires to update the report immediately after the movement.
|The responsible person requires to update this report on a monthly basis.
|It is only for the control in the warehouse, we cannot use it as the reference for preparing financial reports such as Balance Sheet and Income Statement.
|It is the basis for management account for preparing the costing and it will impact the company’s financial statement.