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Bin Card | Two Bin Systems | Store Ledger | Differences in Bin and Store

Arjun EP

Published on: April 25, 2021

Bin Card

Bin card is a document that records the status of goods held in a stock room.

Retailing business uses large stock room with a bin card to record a running balance of stock on hand.

Bin may be a place, rack, container, cupboard, room, hardboard cartoon etc where materials can be kept safe.

Bin card shows the quantity of materials like receipt of materials, issue of materials and balance of materials in chronicle date.

Bin card is also called tag and stock card.

Bin card is used by storekeeper to keep detail quantity of materials.

It does not show amount.

Quantity and amount is shown in FIFO and LIFO.

Entries are made immediately on receipt or issue of materials.

Bin card also shows minimum stock level, maximum stock level and reorder level.

Bin card helps to storekeeper to control stock (inventory, merchandise and materials).

Specimen form of bin card

Everest Company Limited
Bin Card

Bin No. ……………………..					Maximum stock: …………………………..
Code No. of materials: ………….…………					Minimum stock: …………………………..
Description of materials: ………………..					Re-order level: ……………………..………
Ledger No. …………………….					Re-ordering quantity: …………………..

Date	Receipt		Issue			Balance	Stock verification
	Ref. No.	Quantity	Ref. No.	Quantity		Quantity	Date	Initial

Note: amount is not shown in bin card.

Two Bin Systems

In some large manufacturing companies where frequent materials are purchase, two bin systems are used.

Under this system, every bin or rack are divided into two parts viz small bin and large bin.

Small bin is used to keep minimum stock level.

Large bin is used to keep remaining quantity of material.

First, materials are issued for production from large bin.

Materials of small bin will be issued only when materials of larger bin is completely issued.

As well as, materials of larger bin is issued, storekeeper formally requests to purchase department to provide materials in time.

The basic objective of two bin systems is to provide uniform delivery of materials for production.

It helps to avoid production interruption due to shortage of materials.

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Store Ledger

A store ledger is a record of stock. In store ledger quantity and value of materials are recorded.

It shows receipt, issues and balance of materials both in quantities as well as in values.

It is maintained in stores accounting section. It is control by storekeeper.

Specimen of store ledger

Everest Company Limited

Store Ledger

Material; ……………………..

Maximum stock: …………………………..

Code No. of materials: ………….…………

Minimum stock: …………………………..

Location: ……………………………..

Re-order level: ……………………..………

Bin No. …………………….

Re-ordering quantity: …………………..

Date

Particulars

Receipt or purchase

Issued

Balance

Qty

Rate

Qty

Rate

Qty

Rate

Differences between Bin Card and Store Ledger

Bases	Bin card	Store ledger
Maintain	Bin card is maintained by the respect by the storekeeper	Stores ledger is maintained by costing departments.
Record	Bin card records quantities only.	Stores ledger records quantities and values.
Posting	Entries are posted individually in bin card.	Entries are posted periodically in stores ledgers.
Before or after	In bin card, generally, posting is made before the transaction take place	In store ledger, generally, posting is done after the transaction in stores ledger.
Inter-departmental transaction	A bin card cannot show inter-departmental transaction.	Store ledger shows inter-departmental transaction.
Data supply	A bin card cannot supply inventory value for the preparation on final account.	Stores ledger can easily supply the inventory value.