What is Bin Card?
Bin cards are physical records that are used to track the movement of inventory. They are used in manufacturing and warehousing operations. Bin cards contain information such as the item name, item description, quantity, and location.
Bin cards can be used to track both outgoing and incoming inventory. For an outgoing inventory, bin cards can be used to track which items have been shipped to customers. For an incoming inventory, bin cards can be used to track which items have been received from suppliers.
Bin cards can be used to track inventory manually or electronically. Bin cards are an important tool for managing inventory. They can help businesses keep track of what inventory they have on hand, and where that inventory is located. Bin cards can also help businesses track the movement of inventory and identify trends over time.
What is Stores Ledger?
A ledger is a bookkeeping record of all financial transactions made by a business. This includes sales, purchases, payments, and receipts. The ledger is the foundation of a company’s financial statements, and all transactions must be recorded in it.
The ledger is organized into accounts, each of which represents a different category of financial activity. The most common accounts are those for assets, liabilities, and equity. Income and expenses are also recorded in the ledger.
To ensure accuracy, ledgers are kept on a double-entry basis. This means that for every transaction, there must be two entries: one that debits (increases) an account and one that credits (decreases) another account. All debits and credits must sum to the same amount.
A ledger is a critical tool for financial reporting and decision-making. It provides a complete record of a company’s financial transactions and can be used to generate a variety of financial statements.
Difference Between Bin Card and Stores Ledger
- Bin cards are used to track inventory levels in a specific location, while store ledgers track inventory levels across all locations.
- Bin cards are used for raw materials and finished goods, while store ledgers are used for all inventory items.
- Bin cards show the quantity of each material in a specific location, while store ledgers show the total quantity of each material across all locations.
- Bin cards only include information on the materials themselves, while store ledgers include information on the suppliers and manufacturers of the materials.
- Bin cards are used to track inventory levels at a specific point in time, while store ledgers are used to track inventory levels over time.
- Bin cards are used in manufacturing environments, while store ledgers are used in retail environments.
- Bin cards show the quantity of each material in a specific location, while store ledgers show the quantity of each material in all locations.
- Bin cards are used to track inventory levels in a specific location, while store ledgers are used to track inventory levels across all locations.
Comparison Between Bin Card and Stores Ledger
| Parameters of Comparison | Bin Card | Stores Ledger |
| Record | The receipts, issue, and balance of the material are recorded in quantitative form only | The receipts, issue, and balance of the materials are recorded in quantity as well as value |
| Preparation | It is prepared by the storekeeper | Prepared by the cost accounting department |
| Posting | It is normally posted just before the transaction is done | It is always posted after the transaction is done |
| Place | Is kept inside the store | Is kept outside the store |
| Objective | Physical verification and supervision of material | Have effective control of inventory management |