Preschool teachers in Sweden are expected to document children's learning and assess their learning outcomes, for the purpose of long-term evaluation and to develop the educational preschool practice. Previous research shows that the tools for documenting individual learning are particularly focusing on children's cognitive knowledge, while the tools for evaluating the preschool practice are developed for standardized assessment and teachers' self-reflection. The purpose of this study is to present and illustrate an action-based tool that (i) facilitates documentation and assessment of children's multifaceted learning and (ii) combine and interweave individual learning with situated teaching approaches and evaluation of the preschool practice at institutional level. The action-based methodological framework takes a starting point in John Dewey's pragmatism, transactions and functions of education including qualification, socialization and person-formation. Two analytical approaches; Practical Epistemology Analysis (PEA) and Epistemological Move Analysis (EMA) are used to clarify and illustrate individual, social and institutional dimensions of learning from four sequences of one preschool activity including four children and one teacher talking about a fairy tale. We argue that this tool for assessment and evaluation facilitates action-based reflection and discussion about relations between children's individual learning and institutional norms and values.