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Evidence Guide: FNSBKG403 - Establish and maintain an accrual accounting system

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSBKG403 - Establish and maintain an accrual accounting system

What evidence can you provide to prove your understanding of each of the following citeria?

Manage chart of accounts

  1. Adjust chart of accounts to incorporate and establish debtors and creditors as they arise
  2. Establish debtor and creditor subsidiary ledgers as required
Adjust chart of accounts to incorporate and establish debtors and creditors as they arise

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish debtor and creditor subsidiary ledgers as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Process invoices, adjustment notes and other general ledger transactions

  1. Raise invoices to debtors and allocate invoices to creditors with coded and processed source documents
  2. Process and bank payments from debtors in accordance with organisational policy and procedures
  3. Process payments to creditors in accordance with organisational policy and procedures
  4. Allocate adjustments to correct invoices
  5. Raise credit notes for adjustments to invoices and enter other transactions into general ledger
Raise invoices to debtors and allocate invoices to creditors with coded and processed source documents

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Process payments to creditors in accordance with organisational policy and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Allocate adjustments to correct invoices

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Manage contra entries

  1. Contact and liaise with relevant persons to verify contra deals
  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
Contact and liaise with relevant persons to verify contra deals

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and process bad debts

  1. Liaise with relevant persons to report and verify bad debt if negotiations with debtors do not produce successful outcomes
  2. Complete reporting procedures and appropriate documentation in accordance with organisational policy and procedures, and process bad debts to update debtors and general ledgers
Liaise with relevant persons to report and verify bad debt if negotiations with debtors do not produce successful outcomes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Manage debt recovery

  1. Review activities and communication with debtors with relevant persons to determine adequacy of follow up, if applicable
  2. Start processes to collect monies that include initiation of legal action and consultation with experts, in accordance with organisational policy and procedures
Review activities and communication with debtors with relevant persons to determine adequacy of follow up, if applicable

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare and produce reports and trial balance

  1. Produce reports that contain validated transactions
  2. Reconcile debtors and creditors, and produce accurate relevant reports
  3. Produce trial balance and present reports to relevant persons with explanations as required
Produce reports that contain validated transactions

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Reconcile debtors and creditors, and produce accurate relevant reports

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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.