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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Manage chart of accounts
   • Adjust chart of accounts to incorporate and establish debtors and creditors as they arise
   • Establish debtor and creditor subsidiary ledgers as required
2. Process invoices, adjustment notes and other general ledger transactions
   • Raise invoices to debtors and allocate invoices to creditors with coded and processed source documents
   • Process and bank payments from debtors in accordance with organisational policy and procedures
   • Process payments to creditors in accordance with organisational policy and procedures
   • Allocate adjustments to correct invoices
   • Raise credit notes for adjustments to invoices and enter other transactions into general ledger
3. Manage contra entries
   • Contact and liaise with relevant persons to verify contra deals
   • Complete reporting procedures and documentation for contra entries in accordance with organisational policy and procedures, and process contra entries to update debtors, creditors and general ledgers
4. Identify and process bad debts
   • Liaise with relevant persons to report and verify bad debt if negotiations with debtors do not produce successful outcomes
   • Complete reporting procedures and appropriate documentation in accordance with organisational policy and procedures, and process bad debts to update debtors and general ledgers
5. Manage debt recovery
   • Review activities and communication with debtors with relevant persons to determine adequacy of follow up, if applicable
   • Start processes to collect monies that include initiation of legal action and consultation with experts, in accordance with organisational policy and procedures
6. Prepare and produce reports and trial balance
   • Produce reports that contain validated transactions
   • Reconcile debtors and creditors, and produce accurate relevant reports
   • Produce trial balance and present reports to relevant persons with explanations as required

Performance Evidence

Evidence of the ability to:

manage manual and computerised chart of accounts, incorporating accounts receivable and accounts payable, according to organisational procedures and legislative requirements

review completed accounts receivable and payable processes and identify bad and doubtful debts

plan recovery actions in accordance with legal requirements

deal with debtors courteously and respectfully

produce a trial balance.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

explain the differences between cash and accrual accounting

explain the concept of double-entry accounting

identify relevant legal processes and describe procedures relevant to debt recovery

describe the necessary preliminary steps, timing and acceptable avenues for recovering debts

explain organisational policy and procedures related to the processing of transactions and records

identify the key legislative requirements that relate to compliant bookkeeping practice

describe the key features and differences between the operation of manual and computerised accounting systems.

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