Complete debtor processes

This unit describes the performance outcomes, skills and knowledge required to undertake the routine administration and processing of debtor accounts within a wholesale business context in a timely and accurate manner. It ensures trading terms are confirmed, customer credit levels checked and processing occurs accurately.


This unit is undertaken with some supervision and guidance. It requires the team member to utilise standard business technology, systems and reporting mechanisms to consistently apply routine business procedures. It includes checking and confirming current credit level and trading terms with customers, completing routine processing of debtors and accurately reporting breaches of customer credit limits and trading terms, according to workplace policy and relevant legislation.



Elements and Performance Criteria




Confirm trading terms.


Confirm trading terms for purchasers of products or services using business technology or records.


Access business technology or records to determine trading history for a purchaser of products or services.


Access business technology to process routine direct purchases payments.


Process direct purchases payments according to routine business policy and procedures and relevant legislation.


Establish customer debts and credit levels.


Determine individual and business customer credit levels using business technology or records, or refer to relevant personnel.


Identify bad debts using business technology or records.


Analyse credit level of customers purchasing specific products or services.


Maintain updated credit status of account customers according to business policy and procedures.


Determine debt levels for individual and business customers.


Process debtors.


Confirm debt payment terms for businesses purchasing products or services using business technology or records.


Confirm payment terms for individual debtors according to business policy and procedures.


Confirm debt repayments procedures according to business policy and procedures.


Process debtors according to routine business policy and procedures, including debt recovery processes, within designated workplace timeframes.

Required Skills

This section describes the essential skills and knowledge and their level, required for this unit.

The following skills must be assessed as part of this unit:

interpersonal communication skills to:

communicate payment schedule and requirements to customer through clear and direct communication

ask questions to identify and confirm requirements

use language and concepts appropriate to cultural differences

use and interpret non-verbal communication

identifying credit levels, trading terms and payment status

checking trading terms and debit history for a customer

implementing correct business procedures for processing and recovering debt

administering and process debtor accounts

identifying bad debts according to routine procedures and work instructions

confirming debt payment terms and procedures

literacy skills in regard to planning, organising and analysing information from written sources

numeracy skills in regard to:

recording data accurately

processing financial transactions.

The following knowledge must be assessed as part of this unit:

prioritising work schedule

information sources on product and supply arrangements for customers

interpersonal communication techniques

establishing customer needs and trading terms

manufacturer specifications concerning the use of business technology systems

business policy and procedures affecting job role or function, including:

privacy, confidentiality and security provisions affecting data storage, communication of information and access to technology

approval processes

referral of enquiries to relevant management or senior staff.

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

consistent application of routine business procedures to check and confirm current credit level and trading terms with customers

ability to identify debtor accounts using standard business technology and systems

completion of written and electronic documents using standard business technology and reporting mechanisms

ability to complete routine processing of debtors

adherence to routine processes to accurately report breaches of customer credit limits and trading terms using standard business technology.

Context of and specific resources for assessment

Assessment must ensure access to:

a real or simulated work environment

access to relevant business technology

relevant documentation, such as:

workplace or sample policy and procedure manuals

financial transaction dockets, slips and invoices

banking deposit forms

workplace or sample documentation in regard to credit approval processes

workplace or sample financial management system

workplace or sample job descriptions and organisational charts

relevant legislation.

Methods of assessment

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

observation of performance in the workplace

a simulated role play

third-party reports from a supervisor

customer feedback

written or verbal questioning to assess knowledge and understanding.

holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.

Employability skills embedded in this unit should be assessed holistically in the context of the job role and with other relevant units that make up the skill set or qualification.

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 in the performance criteria is detailed below.

Purchaser may include:

new or repeat contacts

external and internal contacts

other businesses or end consumers serviced through business customers or directly

purchasers with routine or special requests

people from a range of social, cultural and ethnic backgrounds and with varying physical and mental abilities.

Business technology may include:



personal computers or terminals (stand-alone or networked)

scanning, bar coding and pricing equipment

point-of-sale terminals

EFTPOS terminals

software such as:

word processing





Records may be:


hard copy.

Trading history may be accessed via:

manual files and reports

electronic files and reports


external agents.

Payments may be received by:



direct credit

credit card


agreed means.

Business policy and procedures may relate to:

acquisition and sale of products and services

management structure and communication relationships

interaction with customers

debt recovery and financial governance.

Relevant legislation may include:

application of GST

Australian Competition and Consumer Commission provisions

Trade Practices and Fair Trading Acts

privacy legislation.

Customer credit levels may be determined:

by automated or manual means

internally or by external agents

Relevant personnel may vary according to:


level of employment

ascribed duties

nature of enquiry

response required.

Payment terms for individual debtors may vary according to:

types of products and services provided

size, type and location of business or debtor

strategic measurement and evaluation outcomes.

Debt recovery processes may include:

electronic or manual forms of contact with the debtor

letters of intent

legal letters

contracted services from debt recovery agencies

alteration to trading terms

legal action

financial remedies.




Competency Field


Employability Skills

The required outcomes described in this unit contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit is packaged will assist in identifying employability skills requirements.

Licensing Information

Not applicable.