Modification History
The version details of this endorsed unit are in the table below. The latest information is at the top.
Release |
Comments |
Second Release |
Editorial updates |
Unit Descriptor
This unit describes the performance outcomes, skills and knowledge required to manage debtor accounts and processing procedures to minimise loss and maximise debt recovery within a wholesale business.
Application of the Unit
This unit applies to personnel who use methods to control consumer debt from sale of products or services and protect a business from financial risk. It involves analysing customer information to confirm appropriate credit levels, trading terms and payment procedures for customers, acting to limit financial risk to both the business and its customers, and implementing debt recovery procedures according to company policy.
Licensing/Regulatory Information
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Pre-Requisites
Nil
Employability Skills Information
This unit contains employability skills.
Elements and Performance Criteria Pre-Content
Elements and Performance Criteria
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Performance Criteria |
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. |
1. Control consumer debt from direct sale of products or services. |
1.1.Source information on trading terms and credit levels for purchasers . 1.2.Confirm trading terms for individual purchaser of products or services according to organisation policy . 1.3.Analyse trading history of individual purchaser of products or services. 1.4.Confirm payment procedures for business, account and individual customers according to workplace policy and relevant legislation . 1.5.Communicate confirmed payment policy and procedures for business, account and individual customers to other team members . |
2. Remove financial risk. |
2.1.Determine financial risk to both business and customer. 2.2.Examine options available to remove financial risk in sales transactions . 2.3.Take action to remove financial risk. |
3. Implement debt recovery strategy. |
3.1.Apply procedures to determine if a customer account is in arrears within set workplace timeframes. 3.2.Ascertain capacity of customer to adhere to debt recovery strategy . 3.3.Reconfirm trading terms with customer. 3.4.Take action to avoid future debt relationships with the customer. |
Required Skills and Knowledge
This section describes the essential skills and knowledge and their level, required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package. |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the following is essential:
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Context of and specific resources for assessment |
Assessment must ensure access to:
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Methods of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
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Guidance information for assessment |
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended. |
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 in the performance criteria is detailed below. |
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Information sources may include: |
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Purchaser may include: |
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Organisation policy may relate to: |
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Trading history may accessed via: |
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Payment procedures may include: |
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Relevant legislation may include: |
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Techniques used to communicate may include: |
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Team members may include: |
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Financial risk may vary according to: |
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Sales transactions may be completed: |
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Debt recovery strategies may include: |
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Unit Sector(s)
Wholesale
Competency field
Finance