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Elements and Performance Criteria

1. Identify overdue accounts
   • Monitor the current state of accounts payable regularly
   • Identify overdue accounts
   • Report overdue accounts to appropriate person in line with company/organisational requirements
2. Notify debtor and negotiate payment
   • Notify debtor of overdue account and any associated interest charges or fines in accordance with company requirements
   • Conduct discussions and negotiations with debtors firmly and courteously
   • Make arrangements for payment in line with company/organisational requirements, procedures and relevant legislation
   • Monitor compliance with arrangements and take further action if necessary according to company/organisational requirements

Required Skills

Refer to Evidence Guide

Evidence Required

Critical aspects of competency

Ability to accurately identify overdue accounts and negotiate arrangements for payment with debtor

Continuous monitoring of debtor compliance with payment arrangements and ensuring further action

Knowledge needed to achieve the performance criteria

Knowledge and understanding are essential to apply this unit in the workplace to transfer the skills to other contexts and to deal with unplanned events The knowledge requirements for this unit are listed below

Financial policy and procedures

Required accounting procedures

Company accounting and ledger systems

Recordkeeping requirements for accounts receivable

Invoicing

Doubleentry bookkeeping operation of computer and manual systems

Relevant industry regulations standards and codes of conduct

Sources of credit status information

Liquidity management

Debt collection

Personal computer applications including accounting software

Relevant legislation

Specific skills needed to achieve the performance criteria

To achieve the performance criteria some complementary skills are required These are

communication including customer service interpersonal negotiation giving information conflict resolution gaining feedback

assertiveness

cash handling

financial processing

methodical organisation of work

analysis of financial information

spreadsheeting

Personal computer operation

Resources required to assess this unit

The following resources should be available

financial recording system

calculator

case studies if required

communications equipment

relevant codes of practice

Gaining evidence to assess this unit

For valid and reliable assessment of this unit the competency should be demonstrated over a period of time and be observed by the assessor or assessment team working together to conduct the assessment The competency is to be demonstrated in a range of situations which may include customerworkplace interruptions and involvement in related activities normally experienced in the workplace

Evidence of competency is best obtained by observing activities in this field and reviewing the maintenance of credit control If this is not practicable observations in realistic simulated environments may be substituted

Consistency in performance

Assessment requires that the cash flow and financial liquidity plan meets the objectives of the client and that it complies with industry expectations in the particular client environment If the environment is narrowly defined or is not representative of industry needs it may be necessary to refer to portfolio case studies of a variety of waste requirement to assess competency in the maintenance of credit control

Oral questioning or written assessment and hypothetical situations scenarios may be used to assess underpinning knowledge In assessment situations where the candidate is offered a preference between oral questioning and written audit questions are to be identical

Supplementary evidence may be obtained from relevant authenticated correspondence from existing supervisors team leaders or specialist training staff

Note All practical demonstrations must adhere to the safety and environmental regulations relevant to each state or territory

Key competency levels

There are a number of processes that are learnt throughout work and life that are required in all jobs They are fundamental processes and generally transferable to other work functions Some of these are covered by the key competencies although others may be added

Information below highlights how these processes are applied in this competency standard

	Perform the process			Perform and administer the process		Perform administer and design the process
How can communication of ideas and information be applied						Share and discuss with colleagues supervisor andor clients information and ideas with regard to developing an understanding of client expectations and requirements
How can information be collected analysed and organised						Collect analyse and comply with legislative and regulatory information relevant to credit control as required
How are activities planned and organised						Prioritise and coordinate or sequence work tasks as required to meet company needs
How can teamwork be applied						Provide assistance to team members to maintain credit control
How can the use of mathematical ideas and techniques be applied						Conduct mathematical calculations to check credit statements
How can problemsolving skills be applied						Analyse factors that may affect credit control and detail contingencies
How can the use of technology be applied						Use technology to access client information and conduct credit control ie spreadsheets

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Range Statement

The range statement links the required knowledge and organisational and technical requirements to the workplace context. It describes any contextual variables that will be used or encountered when applying the competency in work situations. It allows for different work practices and work and knowledge requirements as well as for differences between organisations and workplaces. The following variables may be present for this particular unit.

Client/company/organisation includes all forms of business enterprises in this context including government agencies, local governments/councils, private and public companies and residents/ratepayers.

Communication could be required to be in writing under company/organisational policy.

Company/organisational requirements are found in:

access and equity policy, principles and practice

business and performance plans

client and company confidentiality requirements

client service standards

defined resource parameters

duty of care, code of conduct, code of ethics

emergency and evacuation procedures

induction documentation

insurance policy agreements

legal and organisational policy and procedures including personnel practices and guidelines

OHS policies, procedures and programs

operations manuals

organisational goals, objectives, plans, systems and processes

policies and procedures relating to own role, responsibility and delegation

quality and continuous improvement processes and standards

records and information systems and processes

training materials

verbal or written instructions.

Outstanding accounts include accounts issued for provision of goods and services, and fees for service.

Performance of this unit is carried out in accordance with relevant requirements of the following:

Australian Standards

environmental regulations

legislative requirements

manufacturers' specifications

organisational procedures

relevant state/territory regulations.

Relevant legislation and codes cover state and federal accounting practices and codes, industry codes of conduct, Australian Standards and taxation.

System could be manual or computer-based.

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