Unit of competency Outline

Date retreived
22/07/2026 4:19 AM AWST

Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.

Administer subsidiary accounts and ledgers

Administer subsidiary accounts and ledgers

Unit of competency
National Code
FNSACC302A
State Code
D4031
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/11/2010
View on TGA
State Implementation and Classification
Approved Date
04/07/2014
Field of Education
080101 - Accounting
Original Release Date
04/07/2014
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to reconcile and monitor financial accounts receivable systems, identify bad and doubtful debts and plan a recovery action and remit payments to sundry creditors.This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Review accounts receivable process
  • 1.1. Receipts entered into accounts receivable system are checked for accuracy, consistency and thoroughness
  • 1.2. Incorrect entries are identified and accurately recorded according to type and source of receipt
  • 1.3. Discrepancies between monies owed and monies paid are identified and investigated according to organisation policy, procedures and guidelines
  • 1.4. Receipts entered into accounts receivable system are amended according to established procedures
2. Identify bad and doubtful debts
  • 2.1. Debtors ledger is regularly reviewed in accordance with organisation policy and guidelines to identify outstanding monies an further information, if required, sought from relevant sources
  • 2.2. Bad or doubtful debt status is verified through liaison with debtors
  • 2.3. Reporting procedures and appropriate documentation for bad and doubtful debts is completed in accordance with organisation policy and guidelines
3. Review compliance with terms and conditions and plan recovery action
  • 3.1. Clients in default of trading terms are correctly identified according to organisation operating procedures and contacted promptly and courteously to make satisfactory arrangements to pay monies outstanding
  • 3.2. Monies owing that constitute breaches of organisation credit policy are actioned in accordance with organisation policy and procedures
  • 3.3. Previous activities and communication with clients are thoroughly reviewed to establish adequacy of follow-up procedures, and whether all usual organisation recovery avenues have been exhausted
  • 3.4. Plans to pursue debt recovery or to initiate legal action are developed with measures to collect monies completed in accordance with organisation policy, guidelines and timelines
4. Prepare reports and file documentation
  • 4.1. Reports are prepared which document accounts receivable, debt recovery type, cause and recovery plan and distributed to supervisors, managers and other relevant parties
  • 4.2. Documentation is filed promptly in accordance with organisation policy and procedures
5. Distribute creditors invoices for authorisation
  • 5.1. Invoice discrepancies are identified, investigated and rectified and invoices encoded and recorded correctly
  • 5.2. Authorisation for payment is requested from appropriate personnel
6. Remit payments to creditors
  • 6.1. Cheque requisition is correctly drawn up and authorised and the correct general ledger to be drawn against identified
  • 6.2. Correct account is debited in a timely manner and in accordance with legislative and compliance requirements
  • 6.3. Creditors payments are prepared in an accurate manner
7. Prepare accounts paid report and reconcile balances outstanding
  • 7.1. Data is collected and entered onto spreadsheet giving details of creditors and amounts paid and a report prepared for ratification by appropriate management
  • 7.2. Statements of outstanding balances are sought from suppliers where required and balances outstanding are reconciled to invoices received
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, if used in the performance criteria, is detailed below. Essential operating conditions that 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) may also be included.
Receipts may include:
bankers orders
cash
cash journal entry
cheques:
personal
bank
credit cards:
direct
mail
telephone
direct debits
direct drawing
postal order.
Discrepancies between monies owed and monies paid may occur as a result of:
deduction of brokers or agents commissions
incorrect account allocation
key stroke errors
overpayments
part payments
system errors
termination of policies
underpayments.
Organisation policy, procedures and guidelines may include:
computer system documentation
internal control guidelines
legal obligations
operations manuals
overall organisation goals and objectives
suspension of credit facilities
trading terms and credit limits.
Bad or doubtful debts are identified through:
Australian Securities and Investments Commission (ASIC) action
banks forgoing overdrafts
closure of business
dishonoured cheques
gazette listings
letters from solicitors or accountants
notices of administration
returned mail
sheriff notices or advertisements
utilities being cut off.
Clients may include:
accountants
agents
brokers
customers
intermediaries
policy holders
solicitors.
Reports may be periodic or on demand, manual or computer generated, and may include:
consumer statements
legislative requirements
statistical and financial or management reports
user reports.
Recovery plan and measures to collect monies may include:
advice to supervisors/managers/legal officers
dunning letters
legal action
letters of demand without prejudice
letters of notice
liaison with clients
plaint
return of goods
summons
third party intervention
write-offs.
Appropriate personnel would depend on:
industry and organisation requirements, and may include:
the board of directors; or
a designated group from the board of directors such as the executive.
Relevant legislative and compliance requirements may include:
consumer:
codes of practice
Consumer Credit Code
Privacy Act
secrecy laws
competition:
Australian Competition and Consumer Commission (ACCC)
prudential:
Anti-Money Laundering and Counter Terrorism Financing Acts
Bills of Exchange Act
Cheques and Payment Orders Act
Commercial Tenancies Act
corporate law
Credit Reference Association of Australia (CRAA)
Electronic Funds Transfer (EFT) Code of Conduct
Financial Institutions (FI) Code
Financial Transaction Reports Act
Land Tax Assessment Act
Payroll Tax Assessment Act
Prescribed Payments Act
Stamp Duties Act
Income Tax Assessment Act.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
interpret and comply with organisation policies and procedures and industry compliance requirements for monitoring accounts
identify bad and doubtful debts in a timely manner and plan effective recovery actions
follow bank account reconciliation processes
use relevant data entry systems accurately.

Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to an integrated financial software system and data.

Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports.

Guidance information for assessment
Replaces
State Code National Code Title Type
C9714 FNSICACC301B Administer accounts payable Unit of competency
C9720 FNSICACC307B Reconcile and monitor accounts receivable Unit of competency
Replaced By
State Code National Code Title Type
AUQ09 FNSACC302 Administer subsidiary accounts and ledgers Unit of competency