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Unit of competency details

FNSACC322 - Administer subsidiary accounts and ledgers (Release 1)

Summary

Usage recommendation:
Current
Mapping:
MappingNotesDate
Supersedes and is equivalent to FNSACC312 - Administer subsidiary accounts and ledgersSupersedes and is equivalent to FNSACC312 Administer subsidiary accounts and ledgers. 14/Jun/2022

Release Status:
Current
Releases:
ReleaseRelease date
1 1 (this release) 15/Jun/2022


Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080101 Accounting  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080101 Accounting  15/Jun/2022 
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Unit Of competency

Modification History

Release 

Comments 

Release 1

This version first released with the FNS Financial Services Training Package Version 8.0.

Supersedes and is equivalent to FNSACC312 Administer subsidiary accounts and ledgers.

Application

This unit describes the skills and knowledge required to reconcile and monitor subsidiary accounts and ledgers in financial accounts receivable and accounts payable systems. This includes identifying bad and doubtful debts, communicating with identified clients, and planning a recovery action, recording creditor invoices, and remitting payments to sundry creditors.

The unit applies to individuals who follow agreed processes and use problem solving skills to administer financial accounts and ledgers within the scope of own responsibility.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant regulatory authorities to confirm those requirements.

Unit Sector

Accounting

Elements and Performance Criteria

ELEMENT 

PERFORMANCE CRITERIA 

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Review accounts receivable

1.1 Check invoices, payment receipts, adjustment notes and discounts applied to debtor account for accuracy, consistency and completeness

1.2 Identify and make record of incorrect entries, where required

1.3 Reconcile debtor remittance to account

1.4 Resolve discrepancies according to organisational policies and procedures

2. Identify bad and doubtful debts

2.1 Review debtor ledger according to organisational policies and procedures and identify at risk or in default accounts

2.2 Complete reporting procedures and required documentation for bad and doubtful debts according to organisational policies and guidelines

3. Review client compliance with terms and conditions and plan recovery action

3.1 Identify clients in default of trading terms according to organisational credit policies and operating procedures

3.2 Contact identified clients and come to an agreement on arrangements for payment of outstanding monies

3.3 Action organisational policies and procedures for monies outstanding that constitute breach of organisational credit policy

3.4 Review previous activities and communication with clients to establish adequacy of follow-up procedures, and determine whether usual organisational recovery avenues have been exhausted

3.5 Develop plans to pursue debt recovery or to initiate legal action, with measures completed according to organisational policies and procedures, and within required timeframes

4. Prepare reports and file documentation

4.1 Review and document accounts receivable, debt recovery type and cause, and debt recovery plan

4.2 Develop account reports for supervisors and designated parties

4.3 Plan recovery actions in account reports

4.4 Confirm storage method of account reports and records according to organisational policies and procedures

5. Distribute creditor invoices for authorisation

5.1 Check supplier statement to account and reconcile invoices, payment receipts, adjustment notes and discounts applied to creditor account

5.2 Resolve discrepancies according to organisational policies and procedures

5.3 Request authorisation for payment from designated personnel

6. Remit payments to creditors

6.1 Collect and record data relating to creditor details and payment method according to organisational guidelines and procedures, and prepare report for ratification by management

6.2 Prepare creditor payment and authorisation according to organisational procedures

6.3 Prepare and enter journal to record payment

6.4 Record and escalate discrepancies in statements to supervisor, where required

Foundation Skills

This section describes those language, literacy, numeracy and employment skills that are essential to performance but not explicit in the performance criteria.

SKILL 

DESCRIPTION 

Numeracy

  • Performs mathematical calculations to check accuracy and completeness of numerical and financial data, with a focus on identifying errors and discrepancies

Oral communication

  • Participates in verbal exchanges with a range of personnel and uses questioning and active listening to convey and clarify information and instructions

Reading

  • Analyses, matches and interprets information, paying attention to detail to identify errors

Writing

  • Records information using correct spelling, grammar and terminology
  • Prepares reports of consolidated information and correspondence using logical structure and organisational formats

Teamwork

  • Follows accepted communication practices and protocols to liaise with others

Technology

  • Uses the main features and functions of digital tools to complete work tasks and to access information

Unit Mapping Information

Supersedes and is equivalent to FNSACC312 Administer subsidiary accounts and ledgers.

Links

Companion Volume Implementation Guide is found on VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe

 

Assessment requirements

Modification History

Release 

Comments 

Release 1

This version first released with the FNS Financial Services Training Package Version 8.0.

Supersedes and is equivalent to FNSACC312 Administer subsidiary accounts and ledgers.

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

  • reconcile and monitor for a reporting period two debtor accounts and two creditor accounts and their subsidiary ledgers.

Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

  • procedures for identifying bad and doubtful debts
  • features of double-entry accounting
  • functions and features of account reports
  • methods to plan for and develop account recovery actions
  • legal requirements relating to collecting debts and administering subsidiary accounts and ledgers detailed in:
  • legal systems, regulations and procedures
  • industry codes of practice
  • organisational policies and procedures relating to reconciling and monitoring subsidiary accounts, including organisational credit policy.

Assessment Conditions

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

  • office equipment, technology, software and consumables required to reconcile and monitor accounts payable and receivable data systems.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

Links

Companion Volume Implementation Guide is found on VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe