List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Review accounts receivable process | 1.1 Check receipts entered into accounts receivable system for accuracy, consistency and thoroughness 1.2 Identify and accurately record incorrect entries according to type and source of receipt 1.3 Identify and investigate discrepancies between monies owed and monies paid according to organisational policy, procedures and guidelines 1.4 Amend receipts entered into accounts receivable system according to established procedures |
2. Identify bad and doubtful debts | 2.1 Regularly review debtor ledger in accordance with organisational policy and guidelines to identify outstanding monies and seek further information, if required, from relevant sources 2.2 Verify bad or doubtful debt status through liaison with debtors 2.3 Complete reporting procedures and appropriate documentation for bad and doubtful debts in accordance with organisational policy and guidelines |
3. Review compliance with terms and conditions and plan recovery action | 3.1 Correctly identify clients in default of trading terms according to organisational operating procedures, and promptly and courteously contact to make satisfactory arrangements to pay outstanding monies 3.2 Action organisational policy and procedures for monies owing that constitute breaches of organisational credit policy 3.3 Thoroughly review previous activities and communication with clients to establish adequacy of follow-up procedures and determine whether all usual organisational recovery avenues have been exhausted 3.4 Develop plans to pursue debt recovery or to initiate legal action with measures to collect monies completed in accordance with organisational policy, guidelines and timelines |
4. Prepare reports and file documentation | 4.1 Prepare reports which document accounts receivable, debt recovery type, cause and recovery plan, and distribute to supervisors, managers and other relevant parties 4.2 Promptly file documentation in accordance with organisational policy and procedures |
5. Distribute creditor invoices for authorisation | 5.1 Identify, investigate and rectify invoice discrepancies and encode and record invoices correctly 5.2 Request authorisation for payment from appropriate personnel |
6. Remit payments to creditors | 6.1 Correctly draw up and ensure authorisation of cheque requisition and identify correct general ledger to draw against 6.2 Debit correct account in timely manner and in accordance with legislative and compliance requirements 6.3 Prepare creditor payments in accurate manner |
7. Prepare accounts paid report and reconcile balances outstanding | 7.1 Collect data and enter onto spreadsheet, giving details of creditors and amounts paid, and prepare report for ratification by appropriate management 7.2 Obtain statements of outstanding balances from suppliers where required and reconcile balances outstanding to invoices received |
Evidence of the ability to:
monitor accounts, following organisational policy and procedures and industry compliance requirements
identify bad and doubtful debts in a timely manner
plan effective recovery actions
follow bank account reconciliation processes
use relevant data entry systems accurately.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
identify and describe the key features of:
accounting principles and practices
accounting systems
bank account reconciliation processes
describe how bad or doubtful debts are identified
describe the key requirements of:
legal systems and procedures
relevant legislation or regulations
industry codes of practice
industry compliance requirements
outline the key requirements of organisational policy and procedures relating to reconciling and monitoring financial accounts
describe measures to collect monies and features of recovery plans
explain the features and uses of financial spreadsheets.
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:
common office equipment, technology, software and consumables
integrated financial software system and data.
Assessors must satisfy NVR/AQTF assessor requirements.