Bin card
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Bin card is a record maintained by the stores department under a perpetual inventory system that shows quantities of materials received, issued, and the balance on hand after each transaction. It records only quantity, not value, and is updated when receipts or issues are made. Bin cards are maintained for each individual item in stock, providing information on minimum and maximum levels while allowing for flexible record keeping and more effective stock control through continuous updating. However, maintaining bin cards requires a large storage space, leaves the records unprotected, and can be expensive with challenges in training staff.
Bin card
- 2. Bin card is the record maintained under the perpetual inventory system by the stores department and shows the quantities of materials received, issued and balance in hand after each receipt and issue. It is also known as stock card or bin tag.
- 3. It is the statement if all the receipts and issues of material from stock from the stores department. It is maintained by the store-in-charge or store keeper. It is kept inside the store department. It records only quantity of materials not the value. It is updated when receipts and issues are made in the store department.
- 4. Bin Card is maintained for each item in the stock, in this way it facilitates individual record keeping. It also provides information about the minimum level or maximum level of stock. Bin Card is flexible to use as its format is not standard or rigidly specified. Control over stock can be more effective due to continuous updation. It reduces counting errors.
- 5. A large store space is required when the bin card is to be used. As cards are kept without any protection, it can be damaged. Maintaining bin cards can be more expensive. There are problems associated with training of the staff that has to keep the bin cards. There are chances of omission of receipts and issues of materials due to negligence of employees.