Application
The unit can be applied across all sectors within the financial services sector. |
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Process inventory purchase | 1.1. Purchase of inventory is recorded from appropriate documentation in subsidiary ledger 1.2. Periodic and perpetual records of inventory are maintained |
2. Record inventory flows | 2.1. Inventory flow assumptions are applied as appropriate 2.2. Inventory is valued using appropriate valuation rules |
3. Reconcile inventory records to general ledgers | 3.1. All inventory records to the accounts are reconciled in accordance with organisation's policies, procedures and practices 3.2. Discrepancies are identified and actioned according to organisation's policies, procedures and practices |
4. Prepare inventory schedules and ad hoc reports | 4.1. Schedules of inventory turnover and other procedures are developed and documented 4.2. Spreadsheets and ad hoc reports reporting on inventory status are prepared as required or requested |
Required Skills
|
Required skills |
communication skills to: determine and confirm work requirements, using questioning and active listening as required liaise with others, share information, listen and understand use language and concepts appropriate to cultural differences research skills such as: accessing and managing information interpreting documentation coordinating tasks numeracy and IT skills such as: calculating financial ratios and related information accessing and using appropriate software such as spreadsheets and databases literacy skills to read and interpret documentation from a variety of sources and recording, gathering and consolidating financial information organisational skills, including the ability to plan and sequence work problem solving skills to address data integrity issues |
Required knowledge |
banking processes process for entering data into general ledgers inventory valuation rules reconciliation processes spreadsheets functions |
Evidence Required
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 ability to: interpret and apply organisational policies and procedures and inventory valuation rules make inventory flow assumptions and record inventory flows prepare schedules and ad hoc reports. |
Context of and specific resources for assessment | Assessment must ensure: competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment access to and the use of a range of common office equipment, technology, software and consumables. |
Method of assessment | A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit: evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency observing processes and procedures in workplaces or role plays verbal or written questioning on underpinning knowledge and skills evaluating samples of work accessing and validating third party reports. |
Guidance information for assessment |
Range Statement
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. | |
Documentation may include: | delivery reports invoices from suppliers purchase orders purchase requisitions. |
Inventory flow assumptions may include: | calculations based on gross margins cost net realisable value. |
Inventory valuation rules may include: | first in, first out specific identification weighted average. |
Organisation's policies, procedures and practices may include: | inventory management preparation of reconciliation reports stock takes. |
Ad hoc reports may include: | inventory turnover analysis total purchases and inventory usage for a period. |
Sectors
Unit sector | Accounting |
Employability Skills
This unit contains employability skills. |
Licensing Information
Not applicable.