Retail businesses use Bin Cards and Store Ledgers to increase the efficiency of their tracking system. Store Ledger is used to track sales, whereas Bin Cards are used to track inventory.
These two often cause confusion among people. This article will explain Bin Cards and Store Ledgers and how they are different from each other.
Bin Cards store information about the contents of the waste bins. The use of Bin Cards can help improve waste management by keeping accurate records of what is being discarded. It is possible to use them to evaluate the efficiency of different waste collection services as well.
This card is designed to find out where each item is located in a warehouse or storeroom. This type of card can also be called an inventory list, a stock list, or a product list. Its purpose is to help employees locate and retrieve items quickly and efficiently.
Some features set Bin Cards apart from other ledgers. They are mentioned below -
The receipts and issues are updated as soon as they are made available
Maintains a record of the stock status of goods
Inputted by the storekeeper, i.e. every product that enters and leaves the store is included
Located in a department store
The only thing captured is the quantity of the material, not its value
Every Bin Card contains item identification codes, which aid in spotting missing or misplaced items. It helps maintain a clean and organized stockroom.
Each item entering and leaving the stock room is recorded on Bin Cards to keep an accurate record. It is also possible to find information on the minimum and maximum levels of stock in these documents.
Electronic Bin Cards allow you to monitor large quantities of stock even more efficiently. Businesses can automate or semi-automate collections using computers.
Every Bin Card, whether it is electronic or paper, is updated constantly within the perpetual inventory systems.
The benefits of using a Bin Card are mentioned below -
Minimizes the possibility of mistakes since entries are made simultaneously with the receiving or issuing of goods
Effective control over stock can be achieved through continuous updates
Reduces the chances of counting errors
Individual Bin Cards are kept for every item in the stock, which helps keep a detailed record of each item
Provides details about stock minimum and maximum levels
Its format is not rigid or standard, so it can be used in various ways
There are some disadvantages to using Bin Cards as well. They are -
Requires a large amount of space
In the absence of any protection, cards are prone to damage
They are expensive to maintain and have added hassle
The staff responsible for keeping track of all Bin Cards need to be thoroughly trained
There is a chance of receipts being omitted and materials being mistakenly issued
A business's finances are tracked using various kinds of ledgers. A Store Ledger is an example of one of these ledgers. Generally, a Store Ledger keeps track of the stock that a company has.
In this ledger, you will find information such as an item's name, description, quantity, and price. Companies need this document to ensure that their finances are in order and that their profits are growing.
The person in charge of production is responsible for maintaining the Store Ledger. It contains items for production, particularly raw materials, that are commonly used in the Store Ledger.
Store Ledgers provide insight into a business's stock items in terms of quantity and value. Business owners can use them to decide whether they need to buy additional stock materials.
To determine the closing value of the materials in stock, a Store Ledger can be used by the accounting and auditing staff.
Here are some important features of a Store Ledger -
It is a record of inventory that is kept for accounting purposes
It is handled by the Department of Cost Accounting
The Store Ledger is updated at regular intervals
It is stored outside the stockroom
It contains both quantitative and monetary information, as well as transactional records
It keeps records of inter-departmental transfers
Accounting profits and losses can be determined by the Store Ledger's closing stock value
A Store Ledger contains numerous sheets or cards to keep track of receiving, transferring, and storing material. Upon each movement of materials, quantity, rate, and value, along with the balance of materials, are recorded. Every component of material has its store ledger.
Businesses can use the maximum and minimum columns to determine whether more inventory items are needed or not based on the level of stock available. As a consequence, when the company's stock inventory falls below the minimum level, it can order more items.
Because of this, the businesses have a proper supply of stocks.
It also informs the costing clerk of the capital expenditures and receipts on the respective inventory items and of the end value of the funds received.
The following are the benefits of a store ledger -
Helps achieve internal control
May be performed manually or electronically
Besides telling the number of materials, it also tells their value
Simplifies the process of determining the cost of materials received
Internal checks can be more easily performed
Store Ledgers also have some disadvantages which are listed below -
It is difficult to calculate the data in the store ledgers due to a large number of columns
Many columns need to be filled when updating, so there is a possibility of clerical errors
Store Ledger records do not provide much detail. The actual transactions are merely summed up.
As the article mentions, there are a lot of distinct differences between Bin Cards and Store Ledgers. They are mentioned below in a table format for better understanding -
| Bin Cards | Store Ledgers |
|---|---|
|
Records the transactions of a business. |
Records the amount, quantity, type, and rate of materials being received and issued. |
|
Only the quantity of materials, based on receipts, issues, and balances is recorded. |
Records the movement of inventory in conjunction with its value. |
|
Maintained by the storekeeper. |
Maintained by the Department of Cost Accounting. |
|
It is updated immediately following each transaction. |
It is updated at intervals. |
|
It represents stock in the true sense. |
It represents stock control. |
|
When preparing a profit and loss statement, Bin Card cannot provide values for closing stock. |
It is possible to prepare financial profit and loss accounts from Store Ledgers by using closing stock values. |
|
Any discrepancies in materials must be handled by the officer responsible for the Bin Card. |
If any discrepancies occur in the Store Ledger, they must be handled by the personnel in charge of that ledger. |
|
Bin Card transaction records do not include interdepartmental transactions. |
Interdepartmental transactions are recorded for costing purposes in the Store Ledger. |
Bin Cards and Store Ledgers are two different things. A Bin Card contains information regarding the status of goods located in a stock room. The Store Ledger, however, tracks all commodities stored in a production facility, such as raw materials and production supplies.
Bin Cards are commonly used by retailing businesses with large stock rooms to keep track of their stock levels.
The purpose of the Bin Card and Store Ledger is to track inventory and sales.
It is usually maintained by someone who is in charge of the raw materials and production supplies kept in the facility.
Stores are the money every company stores to plan its future sale of goods.
The items listed in the Store Ledger are - cost of items, items received, items issued, minimum stock, and maximum stock.
It is an accounting record that includes the complete details of the purchase.
The materials ledger card is also known as a Store Ledger Card which is used to provide a continuous record of materials received and issued, along with the quantity and value of the balance of the materials in real-time.
The Store Ledger is maintained in the cost accounting department.
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