Inventory: Bin Card Procedure

Objective 

The Bin Card is a small index card that is affixed to the shelving reserved the storeroom items. The quantity put on or taken off the shelves is noted on the Bin Card. The Storekeeper/Manager can quickly verify available amount by comparing a physical inspection with the quantity indicated on the Bin Card. Incorporating a Bin Card system with physical and perpetual inventory procedure provide for a very tight inventory control system

Procedure 

1. The Storekeeper must completely fill up Bin Card for every items transferred in or out in the storeroom. The following information must be indicated on the Bin Card:

   1. Bin Number

   2. Items Name 

   3. Items specification 

   4. Date 

   5. Purchase Record 

   6. Perpetual Inventory & Issue Record 

   7. Close Inventory 

   8. Signature 

2. Upon receiving or issuing items, the Storekeeper will fill up the Bin Card based on the            requirement stated above. The new Card should be used for new items.

• The “Bin Number”, “Items Name”, “Items Specification” are pre-determined.

• The “Date” is the receiving or issuing date.

•  “Purchasing record” can be filled up based on the “Receiving Record”.

• Upon receiving the items, the received quantity should be filled on the “purchase” column to    indicate the actual quantity received.

• The “available” is the total of “Original Inventory” and “Purchase”. 

• Upon issuing items, the actual quantity of items issued to respective department   should be record in the “issues” column.

• The “close inventory” is calculated based on the following formula:  

  Last Close Inventory/Original Inventory

  Plus Current Purchase In

  Minus Current Issue Out 

  Balance Close Inventory

3. The Storekeeper should physical count the items frequently to ensure that the physical quantity agree with the “Close inventory” recorded on the Bin Card. Any discrepancy should be investigated immediately.

4. The Storekeeper should record the month end inventory quantity for every item on the Bin Card for the purpose of items monthly consumption analysis.

1. The Cost Controller have to random check the record on the Bin Card and compare to the physical quantity of items periodically to ensure that the storekeeper are following the instruction. Also this will be check at the end of the month when conducting the month end inventory taken. Any discrepancy should investigate and report immediately.