Application
This unit describes the skills and knowledge required to comply with organisational inventory procedures, reconcile inventory records to general ledgers, record inventory flows, prepare schedules and produce ad hoc reports.
It applies to individuals who use specialised financial knowledge and follow procedures to ensure compliance with required standards.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Process inventory purchase | 1.1 Record purchase of inventory from appropriate documentation in subsidiary ledger 1.2 Maintain periodic and perpetual records of inventory |
2. Record inventory flows | 2.1 Apply inventory flow assumptions as appropriate 2.2 Value inventory using appropriate valuation rules |
3. Reconcile inventory records to general ledgers | 3.1 Reconcile all inventory records to accounts in accordance with organisational policy, procedures and practices 3.2 Identify and action discrepancies according to organisational policy, procedures and practices |
4. Prepare inventory schedules and ad hoc reports | 4.1 Develop and document schedules of inventory turnover and other procedures 4.2 Prepare spreadsheets and ad hoc reports on inventory status as required or requested |
Evidence of Performance
Evidence of the ability to:
make inventory flow assumptions and record inventory flows using generally accepted accounting principles and inventory valuation rules
prepare schedules and ad hoc reports.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
outline organisational procedures and practices and generally accepted accounting principles relevant to maintaining inventory records
describe the key steps in the inventory management processes and relevant documentation and recording systems
identify and explain the process for entering data into systems or ledgers
explain the key features of inventory valuation rules and reconciliation processes.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:
a range of common office equipment, technology, software and consumables.
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 3.2 | Reviews documentation from a range of sources and matches and analyses information for accuracy, completeness and possible discrepancies |
Writing | 1.1, 1.2, 4.1, 4.2 | Records information accurately using correct spelling, grammar and conventions Prepares concise and logically structured reports and schedules appropriate to the audience and purpose |
Oral Communication | 4.2 | Uses active listening and questioning to clarify and confirm information and instructions |
Numeracy | 1.1, 1.2, 2.1, 2.2, 3.1, 3.2, 4.1, 4.2 | Performs mathematical calculations, including financial ratios, to check accuracy, consolidate and report on financial data |
Navigate the world of work | 3.1, 3.2 | Recognises and complies with relevant protocols, policies and procedures |
Get the work done | 1.2, 2.1, 2.2, 3.1, 3.2, 4.1, 4.2 | Plans, sequences and implements tasks to meet organisational requirements Recognises and responds to predictable problems and implements solutions to address data integrity issues Uses digital systems and programs to assist with planning, implementing, monitoring and reporting |
Sectors
Accounting