This unit applies to individuals employed in a range of work environments supporting the accounting functions and aspects of an enterprise. They may provide administrative support within an enterprise, or may be members of staff who have been delegated accounting responsibilities.

ELEMENT

PERFORMANCE CRITERIA

1. Maintain financial journal systems

1.1. Check source documents for accuracy and appropriate authorisation

1.2. Refer errors and discrepancies in source documents for resolution, in accordance with organisational policy and procedures

1.3. Enter transactions into cash and credit journal system in accordance with organisational policy and procedures, and relevant legislation and compliance requirements

1.4. Total credit journals in accordance with organisational policy and procedures

2. Prepare bank reconciliations

2.1. Check cash journals against bank statements to identify differences

2.2. Update cash journals with relevant data from bank statement/s

2.3. Identify discrepancies and refer to appropriate staff member, organisation or agency

2.4. Total cash journals in accordance with organisational policy and procedures

2.5. Prepare regular reconciliation reports within designated time lines

3. Maintain accounts payable and accounts receivable systems

3.1. Enter transactions into individual accounts payable and accounts receivable, in accordance with organisational policy and procedures, and accounting requirements

3.2. Prepare schedules of accounts payable and accounts receivable for reconciliation purposes, in accordance with organisational requirements

3.3. Reconcile schedules accounts payable and accounts receivable with journal data or general ledger, in accordance with organisational requirements

4. Process payments for accounts payable

4.1. Reconcile accounts payable statements with accounting records, in accordance with organisational policy and procedures

4.2. Check payment documentation for accuracy of information and discrepancies and rectify errors, in accordance with organisational requirements

5. Prepare statements for accounts receivable

5.1. Produce and check accounts receivable statements for accuracy of content in accordance with organisational policy and procedures

5.2. Rectify discrepancies and statements despatched within designated time lines

6. Follow up outstanding accounts

6.1. Maintain accounts receivable ledger system, in accordance with organisational requirements, to reflect current credit situation

6.2. Conduct aged analysis of accounts receivable to identify outstanding accounts and to determine collection procedures, in accordance with organisational requirements

6.3. Report or follow-up outstanding accounts in accordance with organisational policy and procedures

6.4. Monitor and review credit terms in accordance with credit policy and procedures

Required skills

literacy skills to read and understand financial procedures

numeracy skills to:

use knowledge of mathematical concepts

interpret, compare and calculate with whole numbers and money

use decimal fractions and percentages

problem-solving skills to use approximation to check for discrepancies and ensure calculations are correct.

Required knowledge

key provisions of relevant legislation and regulations from all forms of government, standards and codes that may affect aspects of business operations, such as:

Australian Taxation Office regulations

Goods and Services Tax (GST) regulations

anti-discrimination legislation

ethical principles

codes of practice

finance legislation

privacy laws

occupational health and safety

limit of scope of own responsibility

organisational accounting systems and procedures.

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 following is essential:

maintaining journals and subsidiary ledger systems

accurately entering data into journal and subsidiary ledger system

reconciling subsidiary ledger system with journal or general ledger data.

Context of and specific resources for assessment

Assessment must ensure:

access to an actual workplace or simulated environment

access to office equipment and resources, such as:

calculator

computer equipment and relevant software

access to examples of cash journals, credit journals, accounts payable and accounts receivable subsidiary legers

access to workplace reference materials such procedural manuals and company policy.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

analysis of responses to case studies and scenarios

demonstration of techniques

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

review of authenticated documents from the workplace or training environment

oral or written questioning to assess knowledge of accounting procedures and techniques.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

other financial administration units.

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.

Source documents may include:

adjustment notes issued

adjustment notes received

cheque butts

credit notes issued

credit notes received

invoices issued

invoices received

receipts

tax invoices issued

tax invoices received

Transactions may include:

capital contributions in cash by owner

cash purchases

cash sales

commission

credit purchases

credit sales

day-to-day expenses

electronic funds transfer

interest charges and bank fees

interest revenue

payments received from debtors

payments to creditors

petty cash transactions

purchases paid by cheque

returns

withdrawal of cash by owner

Journal system may include:

cash payments journal

cash receipts journal

purchases journal

purchases returns journal

sales journal

sales returns journal

Systems may include:

computerised

manual

Relevant legislation and compliance requirements may include:

consumer:

codes of practice

Australian Consumer Credit Code

privacy laws

secrecy laws

competition:

Australian Competition and Consumer Commission (ACCC), National Competition Policy

prudential:

commonwealth Bills of Exchange Act 1909

commonwealth Cheques and Payment Orders Act 1986

commonwealth Financial Transaction Reports Act 1988

commonwealth Land Tax Assessment Act 2002

commercial tenancies laws

corporate law

Credit Reference Association of Australia (CRAA)

Electronic Funds Transfer (EFT) Code of Conduct

Financial Institutions (FI) Code

payroll tax assessment laws and regulations

prescribed payments laws and regulations

stamp duties laws

taxation assessment laws

Discrepancies may include:

bank charges

direct deposits

direct payments

dishonoured cheques

interest

Accounts payable and accounts receivable systems may include:

accounts payable schedule

accounts payable subsidiary ledger

accounts receivable schedule

accounts receivable subsidiary ledger

Journal data may include:

accounts payable data from cash payments journal

accounts receivable data from cash receipts journal

purchases journal total

purchases returns journal total

sales journal total

sales returns journal total

Checking payment documentation may include:

attachment of supporting invoices, statements

calculation of discount

cheque data

remittance advice data

Accounts receivable statements may include:

any payments received allocated on an invoice by invoice basis

computerised system

discount policy

final balance with overdue details if appropriate

information about any sales, sales returns, credit, forward orders and payments, which have occurred throughout the month

manual system

month to which statement is applicable

name and address of client or accounts receivable

name and address of supplier

opening balance if applicable

Credit terms may include:

arrangements for settlement

cancellation of agreed credit arrangements

cash on delivery

Unit sector

Finance - Financial Administration

This unit contains employability skills.