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

Record-keeping requirements for accounts receivable

Invoicing

Double-entry 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 customer/workplace 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.

Refer to Evidence Guide

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.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist