Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to reconcile and monitor financial accounts receivable systems, identify bad and doubtful debts and plan a recovery action and remit payments to sundry creditors. This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body. |
Application of the Unit
Application of the unit |
This unit may apply to a range of accounts administration job roles in all financial services sectors. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
|
Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Review accounts receivable process |
1.1. Receipts entered into accounts receivable system are checked for accuracy, consistency and thoroughness 1.2. Incorrect entries are identified and accurately recorded according to type and source of receipt 1.3. Discrepancies between monies owed and monies paid are identified and investigated according to organisation policy , procedures and guidelines 1.4. Receipts entered into accounts receivable system are amended according to established procedures |
2. Identify bad and doubtful debts |
2.1. Debtors ledger is regularly reviewed in accordance with organisation policy and guidelines to identify outstanding monies an further information, if required, sought from relevant sources 2.2. Bad or doubtful debt status is verified through liaison with debtors 2.3. Reporting procedures and appropriate documentation for bad and doubtful debts is completed in accordance with organisation policy and guidelines |
3. Review compliance with terms and conditions and plan recovery action |
3.1. Clients in default of trading terms are correctly identified according to organisation operating procedures and contacted promptly and courteously to make satisfactory arrangements to pay monies outstanding 3.2. Monies owing that constitute breaches of organisation credit policy are actioned in accordance with organisation policy and procedures 3.3. Previous activities and communication with clients are thoroughly reviewed to establish adequacy of follow-up procedures, and whether all usual organisation recovery avenues have been exhausted 3.4. Plans to pursue debt recovery or to initiate legal action are developed with measures to collect monies completed in accordance with organisation policy, guidelines and timelines |
4. Prepare reports and file documentation |
4.1. Reports are prepared which document accounts receivable, debt recovery type, cause and recovery plan and distributed to supervisors, managers and other relevant parties 4.2. Documentation is filed promptly in accordance with organisation policy and procedures |
5. Distribute creditors invoices for authorisation |
5.1. Invoice discrepancies are identified, investigated and rectified and invoices encoded and recorded correctly 5.2. Authorisation for payment is requested from appropriate personnel |
6. Remit payments to creditors |
6.1. Cheque requisition is correctly drawn up and authorised and the correct general ledger to be drawn against identified 6.2. Correct account is debited in a timely manner and in accordance with legislative and compliance requirements 6.3. Creditors payments are prepared in an accurate manner |
7. Prepare accounts paid report and reconcile balances outstanding |
7.1. Data is collected and entered onto spreadsheet giving details of creditors and amounts paid and a report prepared for ratification by appropriate management 7.2. Statements of outstanding balances are sought from suppliers where required and balances outstanding are reconciled to invoices received |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
|
Required knowledge |
|
Evidence Guide
EVIDENCE GUIDE |
|
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. |
|
Overview of assessment |
|
Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
|
Context of and specific resources for assessment |
Assessment must ensure:
|
Method of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
|
Guidance information for assessment |
Range Statement
RANGE STATEMENT |
|
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. |
|
Receipts may include: |
|
Discrepancies between monies owed and monies paid may occur as a result of: |
|
Organisation policy , procedures and guidelines may include: |
|
Bad or doubtful debts are identified through: |
|
Clients may include: |
|
Reports may be periodic or on demand, manual or computer generated, and may include: |
|
Recovery plan and measures to collect monies may include: |
|
Appropriate personnel would depend on: |
|
Relevant legislative and compliance requirements may include: |
|
Unit Sector(s)
Unit sector |
Accounting |
Competency field
Competency field |