BIN CARD

Name – Amit Hanmant Karande.

Std – BBA III
Roll No. – 1745017
Subject – Financial Management
Date – 09-09-2019
Bin Card
Content
 Introduction
 History
 Role of Bin card
 One Bin System
 Two Bin System
 Advantages
 Disadvantages
 Elements
 Specimen
 Reference
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Bin Card
 A document that records the status of a
good held in a stock room. A typical
retailing business with a large stock room
will use a bin card to record a running
balance of stock on hand, in addition to
information about stock received and
notes about problems associated with that
stock item.

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History
 At the time before computers appeared, bin cards
were popular in the storage areas. It looked as a
little index card that was set in front of
every product or item at the stock. Usually the
owner or manager used the bin card at the end
of the month to check the quantity of the goods
and determine data for the financial statements.

 Bin cards were created to enable to have the

clear vision how many products are and what
products are missing. That is possible due to the
unique code number that has every product

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Role Of Bin Card
 Bin card can contain more information, e.g.: notes
about problems with stock item, rules of storage and
movement, expiration date, prices, contact
to supplier.

 Bin card in modern warehouses is replaced by its

electronic version. Extensive computer systems help
manage goods in warehouse. They collect information
about places of storage. They can even be used in
automatic or semi-automatic order collection.

 Also bin card provides the information as

the brand name, quantity and inventory or bin code

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One-Bin System
 In One-Bin System items are always being
refilled, even in that situations when only few
goods are needed. At periods that are
determined, for example, weekly, the inventory
increases to the maximum. It differs from the P-
Model. Because in One-Bin System items are
replenished always, and in the optional
replenishment system, the goods are refilled,
when inventory used much more than some
estimated minimum

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Two-Bin System
 Two-Bin System – goods are used from the first
bin. The second bin shows the quantity that is
bug enough to be able to determine, that there is
an ability to refill the stock. In the ideal situation,
the amount that is written on the second bin is
equal to the re-order point that should be
calculated before. At that moment when the
supply of the second bin is brought to the first
bin, everything changes to refill the second bin.
The main secret in the Two-Bin-System is to
divide the inventory, so some part of the goods
are kept in the reserve, until that moment when
the all other items will be used.

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Advantages of Bin Cards
 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

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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

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Elements of Bin Card
 BIN No

 Unit of measurement

 Code No

 Ordering Level

 Item/Material/Article Description

 Minimum Quantity

 Maximum Quantity

 Store Ledger Folio

 Prepared by (with Sign)

 Checked by (with Sign)

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Specimen of Bin Card

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References
 http://www.businessdictionary.com/definit
ion/bin-card.html
 http://www.easyaccounting101.com/man
agement-accounting/cost-accounting/bin-
card
 https://keydifferences.com/difference-
between-bin-card-and-stores-ledger.html

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Bin Card