Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSBKG403 Mapping and Delivery Guide
Establish and maintain an accrual accounting system

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSBKG403 - Establish and maintain an accrual accounting system
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to establish debtors and creditors, manage debt recovery, perform reconciliations and prepare reports for accrual accounting in manual and computerised accounting systems.It applies to individuals who may use managerial and other techniques to provide contract bookkeeping services for organisations and small business owners. Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the bookkeeping field of work and include access to and use of:

common office equipment, technology, software and consumables

an integrated financial software system and data

current and relevant industry information materials.

Assessors must satisfy NVR/AQTF assessor requirements.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Manage chart of accounts
  • Adjust chart of accounts to incorporate and establish debtors and creditors as they arise
  • Establish debtor and creditor subsidiary ledgers as required
       
Element: Process invoices, adjustment notes and other general ledger transactions
  • Raise invoices to debtors and allocate invoices to creditors with coded and processed source documents
  • Process and bank payments from debtors in accordance with organisational policy and procedures
  • Process payments to creditors in accordance with organisational policy and procedures
  • Allocate adjustments to correct invoices
  • Raise credit notes for adjustments to invoices and enter other transactions into general ledger
       
Element: Manage contra entries
  • Contact and liaise with relevant persons to verify contra deals
  • Complete reporting procedures and documentation for contra entries in accordance with organisational policy and procedures, and process contra entries to update debtors, creditors and general ledgers
       
Element: Identify and process bad debts
  • Liaise with relevant persons to report and verify bad debt if negotiations with debtors do not produce successful outcomes
  • Complete reporting procedures and appropriate documentation in accordance with organisational policy and procedures, and process bad debts to update debtors and general ledgers
       
Element: Manage debt recovery
  • Review activities and communication with debtors with relevant persons to determine adequacy of follow up, if applicable
  • Start processes to collect monies that include initiation of legal action and consultation with experts, in accordance with organisational policy and procedures
       
Element: Prepare and produce reports and trial balance
  • Produce reports that contain validated transactions
  • Reconcile debtors and creditors, and produce accurate relevant reports
  • Produce trial balance and present reports to relevant persons with explanations as required
       


Evidence Required

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. Manage chart of accounts

1.1 Adjust chart of accounts to incorporate and establish debtors and creditors as they arise

1.2 Establish debtor and creditor subsidiary ledgers as required

2. Process invoices, adjustment notes and other general ledger transactions

2.1 Raise invoices to debtors and allocate invoices to creditors with coded and processed source documents

2.2 Process and bank payments from debtors in accordance with organisational policy and procedures

2.3 Process payments to creditors in accordance with organisational policy and procedures

2.4 Allocate adjustments to correct invoices

2.5 Raise credit notes for adjustments to invoices and enter other transactions into general ledger

3. Manage contra entries

3.1 Contact and liaise with relevant persons to verify contra deals

3.2 Complete reporting procedures and documentation for contra entries in accordance with organisational policy and procedures, and process contra entries to update debtors, creditors and general ledgers

4. Identify and process bad debts

4.1 Liaise with relevant persons to report and verify bad debt if negotiations with debtors do not produce successful outcomes

4.2 Complete reporting procedures and appropriate documentation in accordance with organisational policy and procedures, and process bad debts to update debtors and general ledgers

5. Manage debt recovery

5.1 Review activities and communication with debtors with relevant persons to determine adequacy of follow up, if applicable

5.2 Start processes to collect monies that include initiation of legal action and consultation with experts, in accordance with organisational policy and procedures

6. Prepare and produce reports and trial balance

6.1 Produce reports that contain validated transactions

6.2 Reconcile debtors and creditors, and produce accurate relevant reports

6.3 Produce trial balance and present reports to relevant persons with explanations as required

Evidence of the ability to:

manage manual and computerised chart of accounts, incorporating accounts receivable and accounts payable, according to organisational procedures and legislative requirements

review completed accounts receivable and payable processes and identify bad and doubtful debts

plan recovery actions in accordance with legal requirements

deal with debtors courteously and respectfully

produce a trial balance.

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:

explain the differences between cash and accrual accounting

explain the concept of double-entry accounting

identify relevant legal processes and describe procedures relevant to debt recovery

describe the necessary preliminary steps, timing and acceptable avenues for recovering debts

explain organisational policy and procedures related to the processing of transactions and records

identify the key legislative requirements that relate to compliant bookkeeping practice

describe the key features and differences between the operation of manual and computerised accounting systems.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Manage chart of accounts

1.1 Adjust chart of accounts to incorporate and establish debtors and creditors as they arise

1.2 Establish debtor and creditor subsidiary ledgers as required

2. Process invoices, adjustment notes and other general ledger transactions

2.1 Raise invoices to debtors and allocate invoices to creditors with coded and processed source documents

2.2 Process and bank payments from debtors in accordance with organisational policy and procedures

2.3 Process payments to creditors in accordance with organisational policy and procedures

2.4 Allocate adjustments to correct invoices

2.5 Raise credit notes for adjustments to invoices and enter other transactions into general ledger

3. Manage contra entries

3.1 Contact and liaise with relevant persons to verify contra deals

3.2 Complete reporting procedures and documentation for contra entries in accordance with organisational policy and procedures, and process contra entries to update debtors, creditors and general ledgers

4. Identify and process bad debts

4.1 Liaise with relevant persons to report and verify bad debt if negotiations with debtors do not produce successful outcomes

4.2 Complete reporting procedures and appropriate documentation in accordance with organisational policy and procedures, and process bad debts to update debtors and general ledgers

5. Manage debt recovery

5.1 Review activities and communication with debtors with relevant persons to determine adequacy of follow up, if applicable

5.2 Start processes to collect monies that include initiation of legal action and consultation with experts, in accordance with organisational policy and procedures

6. Prepare and produce reports and trial balance

6.1 Produce reports that contain validated transactions

6.2 Reconcile debtors and creditors, and produce accurate relevant reports

6.3 Produce trial balance and present reports to relevant persons with explanations as required

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Adjust chart of accounts to incorporate and establish debtors and creditors as they arise 
Establish debtor and creditor subsidiary ledgers as required 
Raise invoices to debtors and allocate invoices to creditors with coded and processed source documents 
Process and bank payments from debtors in accordance with organisational policy and procedures 
Process payments to creditors in accordance with organisational policy and procedures 
Allocate adjustments to correct invoices 
Raise credit notes for adjustments to invoices and enter other transactions into general ledger 
Contact and liaise with relevant persons to verify contra deals 
Complete reporting procedures and documentation for contra entries in accordance with organisational policy and procedures, and process contra entries to update debtors, creditors and general ledgers 
Liaise with relevant persons to report and verify bad debt if negotiations with debtors do not produce successful outcomes 
Complete reporting procedures and appropriate documentation in accordance with organisational policy and procedures, and process bad debts to update debtors and general ledgers 
Review activities and communication with debtors with relevant persons to determine adequacy of follow up, if applicable 
Start processes to collect monies that include initiation of legal action and consultation with experts, in accordance with organisational policy and procedures 
Produce reports that contain validated transactions 
Reconcile debtors and creditors, and produce accurate relevant reports 
Produce trial balance and present reports to relevant persons with explanations as required 

Forms

Assessment Cover Sheet

FNSBKG403 - Establish and maintain an accrual accounting system
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSBKG403 - Establish and maintain an accrual accounting system

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: