Bin card system stock control pdf

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 FormAdvantage of Bin CardBe aware of inventory levelIt 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 warehouseIt 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 recordEvery 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 countDuring 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 CardRequire more timeThe 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.Duplicate workDuring 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 spaceThe 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 ledgerBin CardStore LedgerRecord the movement balance include receipt, issue and
the remaining balance at any specific timeStore 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.report this ad BIN CARD Name – Amit
Hanmant Karande.Std – BBA IIIRoll No. – 1745017Subject – Financial ManagementDate – 09-09-2019 Bin Card Content  Introduction  History  Role of Bin card  One Bin System  Two Bin System  Advantages  Disadvantages  Elements  Specimen  Reference Bin Card 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. Bin Card Export summary to Word Export summary to PDF Notify me of changes The content being displayed has
been produced by a third party, while all attempts have been made to make this content as accessible as possible it cannot be guaranteed. If you are encountering issues following the content on this page please consider downloading the content in its original form Unit of competency Not applicable. Application This unit describes the performance
outcomes, skills and knowledge required to process stock orders, maintain stock levels, minimise stock losses, manage stocktakes and maintain all documents that relate to the administration of any type of stock. The unit applies to all tourism, travel, hospitality and event sectors. The unit is relevant to organisations where stock control is an integral
and essential part of business operations, and where there are complex ordering and control issues to be considered.
The unit is not appropriate for situations where stock management is very simple, such as controlling stationery supplies in a small office. The unit applies to stock control personnel who operate independently, have responsibility for others and make a range of decisions on the overall administration of stock. It applies to all tourism, travel, hospitality
and event sectors. No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication. Pre-requisite Unit Nil Competency Field Inventory Unit Sector Cross-Sector Elements and Performance Criteria ELEMENTS PERFORMANCE CRITERIA Elements describe the essential outcomes. Performance
criteria describe the performance needed to demonstrate achievement of the element. 1. Maintain stock levels and records. 1.1.Use stock control systems and equipment to administer all stock control and ordering processes. 1.2.Monitor and maintain stock levels to meet organisational requirements. 1.3.Monitor stock security and adjust procedures
as required. 1.4.Inform colleagues of their individual stock ordering responsibilities. 1.5.Maintain records of stock levels and create reports according to organisational procedures. 1.6.Monitor stock performance, and identify and report fast or slow-selling items. 1.7.Monitor and adjust stock reorder cycles. 2. Process stock orders. 2.1.Process orders
for stock according to organisational procedures. 2.2.Maintain stock levels and record current accurate details. 2.3.Check and record incoming stock against purchase and supply agreements. 3. Minimise stock losses. 3.1.Regularly check storage of stock and ensure its protection. 3.2.Identify, record and report stock losses. 3.3.Identify avoidable
losses and establish reasons for them. 3.4.Recommend solutions and implement procedures to prevent future losses.

4. Follow-up orders. 4.1.Monitor delivery of stock to ensure agreed deadlines are met. 4.2.Liaise with suppliers to ensure continuity of supply. 4.3.Resolve routine supply problems or refer to appropriate person for action. 4.4.Distribute stock within the organisation according to required allocations. 5. Organise and administer stocktakes. 5.1.Organise
stocktakes at appropriate intervals. 5.2.Allocate stocktaking responsibilities to staff and supervise the operation of the stocktake. 5.3.Produce accurate stocktake reports within designated timelines. Foundation Skills Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief
context statement. SKILLS DESCRIPTION Reading skills to: interpret supplier purchasing agreements, purchase orders, records of incoming stock and organisational procedures. Writing skills to: prepare detailed reports on stock levels, performance, losses and stocktakes.
Oral communication skills to: discuss reasons for stock losses with staff. Numeracy skills to: supplier costs and complex order costs complex details of stock on hand and stock losses and produce complex numerically-based reportsreconcile incoming stock and invoices against purchase orders. Teamwork skills to: direct staff on ordering
responsibilities and supervise staff participation in stocktakes. Planning and organising skills to: efficiently order and maintain stock so that stock levels meet organisational requirements. Technology skills to: use a computer, keyboard and stock control software use electronic stock control equipment. Unit Mapping Information SITXINV401 Control
stock Links Companion Volume implementation guides are found in VETNet - Assessment requirements Not applicable. Performance Evidence Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:order, control and administer continuous and efficient supply relating to at
least six different types of stock items use stock control procedures to monitor and maintain stock levels for the above items over a stock life cycle period that includes a stocktake produce and distribute stock control reports complete above stock order and reporting activities within commercial time constraints.Knowledge Evidence Demonstrated
knowledge required to complete the tasks outlined in elements and performance criteria of this unit:principles of stock control:rotation and replenishment product life cycle and maximising the use of all stock checking for slow moving items segregation of non-food items from food items that have potential to cross-contaminatebin card system imprest
system integrated point-of-sale system ledger systemstock control procedures, template documents and reports for:ordering levels loss performance monitoring of quality receipt reorder cycles rotation security stocktakes valuation wastagestorage requirements for different kinds of stock use of stock control equipment and software where
appropriate specific industry sector:types of computer stock control systems used, their functions and features electronic equipment used for stock control; their functions and features stock security systems types of storage and their suitability for different kinds of stock methods to monitor and maintain stock levelsrelevant stock and product life and
storage requirements for specific goods departmental or individual stock ordering responsibilities full content of stock control and security procedures sources of information on negotiated cost of supply, contractual arrangements and preferred supplier arrangements full content of stock ordering procedures and documents stock reorder cycles stock
level reports stock performance reports stock loss reports full content of stocktake procedures, documents and reports reasons for stock loss and damage and methods to control theseconsiderations in the protection of stock:avoiding cross contamination correctly applying humidity and temperature controls correct ventilation securing stock storing
stock in correct location and conditions to avoid damage treating pest and vermin infestations.Assessment Conditions Skills must be demonstrated in an operational tourism, travel, hospitality or events environment where stock levels are monitored and maintained. This can be:an industry workplace a simulated industry environment. Assessment
must ensure access to:computers, printers and stock control software systems electronic equipment used for stock control diverse and comprehensive range of tourism, travel, hospitality or event industry stock items that are monitored and maintained current commercial stock control procedures and documentation for the ordering, monitoring and
maintenance of stock. Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors. Links Companion Volume implementation guides are found in VETNet - Without a record-keeping system, inventory tracking and monitoring would be nearly impossible. For this reason, bin cards are essential to inventory
management.

Whether you keep your inventory records in paper form or digitally, using bin cards can help you maintain order in your warehouse while also ensuring that you never lose track of what you have on hand.When keeping track of inventory, a bin card is often used.What Is an Inventory Bin Card?Bin cards, sometimes called inventory or stock cards, are
record-keeping documents used in retail and other businesses requiring stock room.

They always maintain an accurate count of a company's available stock.A table with general stock item information is typically included on bin cards. This table may include the item name, brand name, quantity, and identification code. The bin card contains several other categories, the specifics of which change according to the requirements of the
stock room. These categories may include receipt information, the date of order, the date received, stock item notes (such as problems with an item), storage conditions, and movement.Where did inventory bin cards originate from?Inventoried bin cards originated in the 19th century and were used to track warehouse items. They helped managers
keep an accurate record of inventory levels, making it easier to order new stock when needed. The precursors of bin cards were paper slips affixed on each item stored in the warehouse, with handwritten information about the quantity and type of product stored in each slot. This system was eventually replaced by perforated index cards, which
allowed for a more efficient tracking system that could be easily updated as inventory changed.
In more modern times, inventory bin cards have been replaced by computerized systems that store all information electronically. However, these cards are still used in some places as they provide an easy way to track items manually. They benefit smaller warehouses that lack the resources to invest in more sophisticated systems. Bin cards can also
be used when tracking many items that do not lend themselves well to automated tracking. They remain an essential tool for inventory management and should be considered part of any warehouse planning process. Overall, inventory bin cards have been valuable in the warehouse industry since they were developed. They provide an easy and
efficient way to keep track of items stored in warehouses, allowing managers to monitor their stock levels better and determine when new products need to be ordered. At the same time, modern systems offer more advanced ways to track inventories that may be more suitable for more extensive operations. However, bin cards remain a viable option
for those who do not have access to or the resources for automated tracking and should be considered whenever inventory management is discussed.What is the function of a Bin Card?In the past, bin cards were always made entirely of paper and resembled index cards. These cards are secure in front of each item in a stock room. Employees use
them to conduct inventory counts and collect data required for preparing financial statements in the area of accounting.Identifying missing or misplaced items is often simple, thanks to the identification codes printed on each bin card. This helps to promote a clean and organized stock room. To have an accurate inventory picture, the bin cards must
record every item that comes in and goes out of the stock room. In addition to that, they might include information on minimum and maximum stock levels.Most bin cards used today are electronic, making it much simpler to keep track of a significant amount of stock. Depending on the company's requirements, a computer can either fully or partially
automate the collection process.When Is the Use of Bin Cards Appropriate?In perpetual inventory systems, bin cards take on a significant role. With perpetual inventory systems, inventory records are continually updated in real-time.
This keeps everything accurate. Databases that track inventory are constantly keeping track of what items have been received, what items have been sold, what items have moved, what items have been used in production, and what items have been discarded.A computer database that monitors inventory quantities and bin locations is ideal for
operating perpetual inventory systems. Here is where the use of bin cards becomes relevant.
Whether the bin cards are paper or electronic, perpetual inventory management systems require updating them regularly and in real time.Advantages and Disadvantages inventory bin cardsThe use of bin cards is beneficial in several different ways. They make tracking inventory levels much easier on the most fundamental level. According to
Accountinguide, taking inventory can be time-consuming and take several hours to finish. However, using bin cards that indicate minimum material levels can help employees be notified when there is a problem with the inventory.Using bin cards can also simplify moving around in the stock room. Cross-referencing the code, made possible by the
identification numbers printed on each bin card, enables the staff to quickly and easily confirm that they have located the correct item.Employees have greater control over inventory due to easy access to accurate and current information and the requirement that bin cards be continuously updated in real time. However, it would help if you spent
some time filling out the bin cards. In addition to ensuring that the cards contain the most recent information possible, staff members are responsible for ensuring that the information is accurately recorded in the store's ledger. Because the card can take up valuable space, they are best suited for warehouses rather than smaller stock rooms. This
makes them ideal for warehouses.Should all manufacturing organizations use inventory bin cards to manage inventory?No, all manufacturing organizations should not use inventory bin cards to manage their inventory. While inventory bin cards are an effective tool for tracking and managing inventory in some circumstances, they have limitations. Bin
cards require manual data input into the system and cannot easily access real-time data. Additionally, if changes need to be made or new items added, it could quickly become tedious due to their static nature. In today's technology-driven world, various options can offer more comprehensive inventory management systems, such as barcode scanners
and RFID readers, allowing immediate access to information about stock levels and product locations without requiring manual inputting. Advanced software solutions like Enterprise Resource Planning (ERP) or Warehouse Management Systems (WMS) can provide even more in-depth features, such as automated ordering, cycle counting, and
advanced analytics. These solutions allow organizations to manage their inventory more efficiently and cost-effectively. Ultimately, whether an organization should use inventory bin cards depends on the size of its operation and the complexity of its inventory management system. Bin cards may be sufficient for smaller operations with more detailed
inventory requirements. However, for more significant operations with complex needs, exploring other options, such as barcode scanners or ERP systems that offer greater control over inventory and improved accuracy, is likely better. Ultimately, choosing the right solution to meet your specific needs will help ensure you effectively manage your
inventory. How can a manufacturing organization know when to use inventory bin cards or an advanced ERP system?Inventory bin cards and ERP systems are both tools that can be utilized in a manufacturing organization to keep track of inventory.
Determining which tool is best for your particular needs depends on the size and scope of operations and how quickly inventory needs to be managed.
For smaller businesses with fewer items in inventory, manual inventory bin cards may prove to be sufficient. They are more straightforward, require less training, and are often relatively cost-effective. However, they do not provide an integrated view of the entire operation, so tracking items as they move through production can be more challenging.
Moreover, such cards require frequent manual counting and bookkeeping processes, making them labor-intensive for larger organizations or those with complex product lines. On the other hand, an enterprise resource planning (ERP) system can provide a comprehensive view of inventory management in real time. ERP systems are suitable for larger
organizations with more complex product lines that need to track parts and supplies as they move through production processes. An ERP system offers features such as automated ordering, automatic re-ordering when stock levels reach certain thresholds and detailed tracking of each item's life cycle. Using these features can save considerable time
and money while increasing efficiency.

However, it can come at the cost of added training requirements and higher implementation costs than manual bin cards. Ultimately, deciding between using manual inventory bin cards or an ERP system depends on your organizational needs. If you anticipate rapid growth, an ERP system may be the better choice, as it can scale your business.
Inventory bin cards may be the way to go if you need to keep track of fewer items and operate on a tight budget. Exploring both options is vital in ensuring you get the most out of your inventory management system. Consulting with a professional specializing in inventory systems is also recommended to determine which option best suits your
organization's needs. Doing so ensures that you make an informed decision when selecting between manual bin cards or an ERP system and ultimately reap the most benefits from whichever one you choose.What Is an Inventory Bin Card?

Should I Use Them? Recommended ReadingUpdated: 4/16/2023