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Elements and Performance Criteria

  1. Review accounts receivable process
  2. Identify bad and doubtful debts
  3. Review compliance with terms and conditions and plan recovery action
  4. Prepare reports and file documentation
  5. Distribute creditors invoices for authorisation
  6. Remit payments to creditors
  7. Prepare accounts paid report and reconcile balances outstanding

Required Skills

Required skills

communication skills to

determine and confirm work requirements and interact with clients using questioning and active listening as required

share information listen and understand

use language and concepts appropriate to cultural differences

welldeveloped numeracy skills to make financial calculations

IT skills for accessing and using accounting systems spreadsheets and databases

evaluation skills to determine payment status and any discrepancies

literacy skills for

data analysis and entry

drafting reports and letters

organisational skills including the ability to plan and sequence work and maintain accurate records

Required knowledge

accounting principles and practices

accounting systems

awareness of legal systems and procedures and relevant acts or regulations

industry codes of practice

industry compliance requirements

organisation policy guidelines and procedures

use of financial spreadsheets

Evidence Required

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

interpret and comply with organisation policies and procedures and industry compliance requirements for monitoring accounts

identify bad and doubtful debts in a timely manner and plan effective recovery actions

follow bank account reconciliation processes

use relevant data entry systems accurately

Context of and specific resources for assessment

Assessment must ensure

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment technology software and consumables

access to an integrated financial software system and data

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

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports

Guidance information for assessment


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:

bankers orders

cash

cash journal entry

cheques:

personal

bank

credit cards:

direct

mail

telephone

direct debits

direct drawing

postal order.

Discrepancies between monies owed and monies paid may occur as a result of:

deduction of brokers or agents commissions

incorrect account allocation

key stroke errors

overpayments

part payments

system errors

termination of policies

underpayments.

Organisation policy, procedures and guidelines may include:

computer system documentation

internal control guidelines

legal obligations

operations manuals

overall organisation goals and objectives

suspension of credit facilities

trading terms and credit limits.

Bad or doubtful debts are identified through:

Australian Securities and Investments Commission (ASIC) action

banks forgoing overdrafts

closure of business

dishonoured cheques

gazette listings

letters from solicitors or accountants

notices of administration

returned mail

sheriff notices or advertisements

utilities being cut off.

Clients may include:

accountants

agents

brokers

customers

intermediaries

policy holders

solicitors.

Reports may be periodic or on demand, manual or computer generated, and may include:

consumer statements

legislative requirements

statistical and financial or management reports

user reports.

Recovery plan and measures to collect monies may include:

advice to supervisors/managers/legal officers

dunning letters

legal action

letters of demand without prejudice

letters of notice

liaison with clients

plaint

return of goods

summons

third party intervention

write-offs.

Appropriate personnel would depend on:

industry and organisation requirements, and may include:

the board of directors; or

a designated group from the board of directors such as the executive.

Relevant legislative and compliance requirements may include:

consumer:

codes of practice

Consumer Credit Code

Privacy Act

secrecy laws

competition:

Australian Competition and Consumer Commission (ACCC)

prudential:

Anti-Money Laundering and Counter Terrorism Financing Acts

Bills of Exchange Act

Cheques and Payment Orders Act

Commercial Tenancies Act

corporate law

Credit Reference Association of Australia (CRAA)

Electronic Funds Transfer (EFT) Code of Conduct

Financial Institutions (FI) Code

Financial Transaction Reports Act

Land Tax Assessment Act

Payroll Tax Assessment Act

Prescribed Payments Act

Stamp Duties Act

Income Tax Assessment Act.