Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to establish debtors and creditors, bad debt and contra entries, perform reconciliations, review compliance terms and conditions, plan a recovery action and prepare reports to set up and maintain a manual and computerised accrual accounting system. This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including various aspects of the Tax Act, Goods and Services Tax (GST) rulings. |
Application of the Unit
Application of the unit |
This unit applies to individuals who are responsible for providing contract bookkeeping services across all industries and working directly for organisations and small business owners. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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FNSBKG402A |
Establish and maintain a cash accounting system |
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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. Manage the chart of accounts |
1.1. Chart of accounts is adjusted to incorporate and establish debtors and creditors as they arise 1.2. Debtors and creditors subsidiary ledgers are established as required |
2. Process invoices, adjustment notes and other general ledger transactions |
2.1. Invoices to debtors are raised and invoices to creditors are allocated with source documents coded and processed 2.2. Payments from debtors are received, processed and banked in accordance with organisational policies and procedures 2.3. Payments to creditors are made and processed in accordance with organisational policies and procedures 2.4. Adjustments are raised and allocated to correct invoices 2.5. Credit notes are raised for adjustments to invoices and other transactions are entered into the general ledger |
3. Manage contra entries |
3.1. Relevant persons are contacted and liaised with to verify contra deals 3.2. Reporting procedures and documentation for contra entries are completed in accordance with organisational policies and procedures and contra entries processed to update debtors, creditors and general ledgers |
4. Identify and process bad debts |
4.1. Bad debt status is verified through liaison with relevant persons and following attempts to work with debtors to clear debts 4.2. Reporting procedures and appropriate documentation are completed in accordance with organisational policies and procedures and bad debts processed to update debtors and general ledgers |
5. Manage debt recovery |
5.1. Activities and communication with debtors are reviewed in conjunction with relevant persons, if applicable, to establish adequacy of follow-up 5.2. Measures to collect monies, including the initiation of legal action and the seeking of expert advice, are undertaken in accordance with organisational policies and procedures |
6. Prepare and produce reports and trial balance |
6.1. Reports are produced and transactions in report are validated 6.2. Debtors and creditors are reconciled and relevant reports are produced with any necessary corrections made 6.3. Trial balance is produced and reports are presented and explained where necessary to relevant persons |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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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. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
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Context of and specific resources for assessment |
Assessment must ensure:
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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:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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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. |
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Organisational policies and procedures may include: |
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Other transactions may include: |
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Relevant persons may include, but are not limited to: |
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Unit Sector(s)
Unit sector |
Bookkeeping |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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