Elements and Performance Criteria

The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.
The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.
Receipts may include:
cheques (personal, bank)
credit cards (direct, mail, telephone)
postal order
bankers orders
cash
direct debits
direct drawing
cash journal entry
Discrepancies between monies owed and monies paid may occur as a result of:
part payments
under payments
deduction of brokers/agents commissions
key stroke errors
over payments
termination of policies
incorrect account allocation
system errors
Bad or doubtful debts are identified through:
dishonoured cheques
Australian Securities and Investments Commission (ASIC) action
banks foregoing overdrafts
closure of business
notices of administration
returned mail
letters from solicitors/accountants
sheriff notices/advertisements
utilities being cut off
gazette listings
Clients may include:
policy holders
agents
customers
solicitors
brokers
intermediaries
accountants
Company policy, procedures and guidelines may include:
overall company goals and objectives
internal control guidelines
trading terms and credit limits
suspension of credit facilities
operations manuals
computer system documentation
legal obligations
Recovery action and measures to collect monies may include:
liaison with clients
letters of notice
advice to supervisors/managers/legal officers
return of goods
legal action
plaint
dunning letters
letters of demand without prejudice
third party intervention
summons
write-offs
Reports may be periodic or on demand, manual or computer generated, and may include:
consumer statements
statistical/financial or management reports
user reports
legislative requirements

EVIDENCE GUIDE
Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.
Overview of assessment requirements
To achieve competency in this unit, a person must be able to demonstrate:
knowledge of company policies and procedures for monitoring accounts receivable
knowledge of industry compliance requirements
knowledge of relevant legislation
ability to review accounts receivable process
ability to identify bad and doubtful debts
ability to review compliance with terms and conditions
ability to plan recovery actions
ability to prepare reports and file documentation
Critical aspects of evidence
Evidence required for demonstration of consistent performance:
Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.
Delivery/relationship to other units:
This unit may be assessed on its own or it may be assessed with other units that cover related skills and knowledge.
Evidence is most relevant when provided through an integrated activity which combines the elements of competency for the unit, or a cluster of units of competency.
Assessment requirements
Method of assessment:
For valid and reliable assessment of this unit, evidence must be gathered through a range of methods to indicate consistent performance.
Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.
Context of assessment:
Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.

Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.
Resources required for assessment:
Unless otherwise specified, there are no significant resource implications for assessment of this unit, apart from access to a relevant workplace or closely simulated office environment and the use of a range of office equipment, technology and consumables. These may include standard commercial computer hardware, software, telephones, facsimiles, and other relevant office equipment.