Elements and Performance Criteria

The Range Statement provides advice to interpret the scope and context of this unit of competency, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:
Legislation, codes and national standards relevant to the workplace which may include:
award and enterprise agreements and relevant industrial instruments
relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination
relevant industry codes of practice
Organisational requirements may include:
quality assurances and/or procedures manuals
procedures for totalling adjusted journals
resolution procedures
legal and organisational policy/guidelines and requirements
security procedures
Occupational Health and Safety policies, procedures and programs
guidelines for reconciling journals
Australian accounting and auditing standards
designated timelines
Discrepancies may relate to:
bank charges
interest
dishonoured cheques
errors in transposing between source documents and journals
Documentation may include:
sales invoices
purchase invoices
sales credit notes
purchase credit notes
Designated persons may include:
supervisor
bank
organisation's authorisations department
line management
statutory body
Journals may include:
sales and sales returns
cash receipts
purchases and purchase returns
cash payments
Transactions may include:
purchase of a fixed asset on credit
sale of a fixed asset on credit
correction of posting errors
write-off a bad debt
interest expense
interest receivable
commencing business entries
withdrawal of stock/assets by owner
non-cash transactions (eg writing off depreciation, stock losses)
Reconciling debtors'/creditors' systems may include:
checking accuracy of debtor account balances (eg cash receipts journal, sales return journal, general journal)
checking accuracy of creditor account balances (eg cash payments journal, purchases journal, purchases returns journal, general journal)
checking the total of the debtor's schedule equals the balance of the debtor's control account
checking the total of the creditor's schedule equals the balance of the creditor's control account
Payments may include:
cheque
credit card
cash
direct debit
Designated timelines may specify:
within agreed period
monthly
by month end
within organisational deadline
The Range Statement provides advice to interpret the scope and context of this unit of competency, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:
Legislation, codes and national standards relevant to the workplace which may include:
award and enterprise agreements and relevant industrial instruments
relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination
relevant industry codes of practice
Organisational requirements may include:
quality assurances and/or procedures manuals
procedures for totalling adjusted journals
resolution procedures
legal and organisational policy/guidelines and requirements
security procedures
Occupational Health and Safety policies, procedures and programs
guidelines for reconciling journals
Australian accounting and auditing standards
designated timelines
Discrepancies may relate to:
bank charges
interest
dishonoured cheques
errors in transposing between source documents and journals
Documentation may include:
sales invoices
purchase invoices
sales credit notes
purchase credit notes
Designated persons may include:
supervisor
bank
organisation's authorisations department
line management
statutory body
Journals may include:
sales and sales returns
cash receipts
purchases and purchase returns
cash payments
Transactions may include:
purchase of a fixed asset on credit
sale of a fixed asset on credit
correction of posting errors
write-off a bad debt
interest expense
interest receivable
commencing business entries
withdrawal of stock/assets by owner
non-cash transactions (eg writing off depreciation, stock losses)
Reconciling debtors'/creditors' systems may include:
checking accuracy of debtor account balances (eg cash receipts journal, sales return journal, general journal)
checking accuracy of creditor account balances (eg cash payments journal, purchases journal, purchases returns journal, general journal)
checking the total of the debtor's schedule equals the balance of the debtor's control account
checking the total of the creditor's schedule equals the balance of the creditor's control account
Payments may include:
cheque
credit card
cash
direct debit
Designated timelines may specify:
within agreed period
monthly
by month end
within organisational deadline

The Evidence Guide identifies the critical aspects, underpinning knowledge and skills to be demonstrated to confirm competency for this unit. This is an integral part of the assessment of competency and should be read in conjunction with the Range Statement.
Critical Aspects of Evidence
Identifying and responding to discrepancies and errors
Transferring and recording financial data accurately
Identifying and complying with organisational requirements
Reconciling expenditures and revenue
Recommending options for financial decision making
Underpinning Knowledge*
* At this level the learner must demonstrate some relevant theoretical knowledge.
The relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination
Knowledge of organisational policies and procedures relating to maintaining financial records
Understanding processes to identify relevant source documents and information contained within source documents
Understanding of the importance of a general ledger chart of accounts in relation to maintain and reporting financial data
Understanding the definition of credits/creditors and debits/debtors
Principles of double entry bookkeeping and accrual accounting
Understanding methods of presenting financial data
Knowledge of financial legislation references and information
Understanding practices to include ethical considerations in all areas of work
Underpinning Skills
Literacy skills to identify financial information; to read and understand the organisation's accounting procedures
Proofreading and editing skills to ensure conformity to organisational requirements, check for accuracy and consistency of information
Communication skills to clarify information and refer errors or discrepancies to appropriate people
Numeracy skills to reconcile figures; prepare cash analysis sheets
Analysis skills to read and interpret financial data
Problem solving skills for a defined range of problems
Ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities
Resource Implications
The learner and trainer should have access to appropriate documentation and resources normally used in the workplace
Consistency of Performance
In order to achieve consistency of performance, evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations
Context/s of Assessment
Competency is demonstrated by performance of all stated criteria, including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope as defined by the Range Statement
Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package
Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment
Assessment should reinforce the integration of the key competencies and the Business Services Common Competencies for the particular AQF Level. Refer to the Key Competency Levels at the end of this unit
Key Competency Levels
Collecting, analysing and organising information (Level 2) - to process financial documentation
Communicating ideas and information (Level 2) - with members of the work team
Planning and organising activities (Level 2) - for payment of invoices etc within designated timeframes
Working with teams and others (Level 1) - in completing scheduled tasks
Using mathematical ideas and techniques (Level 2) - in reconciling financial documents
Solving problems (Level 1) - to identify discrepancies and errors
Using technology (Level 2) - to complete allocated tasks
Please refer to the Assessment Guidelines for advice on how to use the Key Competencies
The Evidence Guide identifies the critical aspects, underpinning knowledge and skills to be demonstrated to confirm competency for this unit. This is an integral part of the assessment of competency and should be read in conjunction with the Range Statement.
Critical Aspects of Evidence
Identifying and responding to discrepancies and errors
Transferring and recording financial data accurately
Identifying and complying with organisational requirements
Reconciling expenditures and revenue
Recommending options for financial decision making
Underpinning Knowledge*
* At this level the learner must demonstrate some relevant theoretical knowledge.
The relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination
Knowledge of organisational policies and procedures relating to maintaining financial records
Understanding processes to identify relevant source documents and information contained within source documents
Understanding of the importance of a general ledger chart of accounts in relation to maintain and reporting financial data
Understanding the definition of credits/creditors and debits/debtors
Principles of double entry bookkeeping and accrual accounting
Understanding methods of presenting financial data
Knowledge of financial legislation references and information
Understanding practices to include ethical considerations in all areas of work
Underpinning Skills
Literacy skills to identify financial information; to read and understand the organisation's accounting procedures
Proofreading and editing skills to ensure conformity to organisational requirements, check for accuracy and consistency of information
Communication skills to clarify information and refer errors or discrepancies to appropriate people
Numeracy skills to reconcile figures; prepare cash analysis sheets
Analysis skills to read and interpret financial data
Problem solving skills for a defined range of problems
Ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities
Resource Implications
The learner and trainer should have access to appropriate documentation and resources normally used in the workplace
Consistency of Performance
In order to achieve consistency of performance, evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations
Context/s of Assessment
Competency is demonstrated by performance of all stated criteria, including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope as defined by the Range Statement
Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package
Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment
Assessment should reinforce the integration of the key competencies and the Business Services Common Competencies for the particular AQF Level. Refer to the Key Competency Levels at the end of this unit
Key Competency Levels
Collecting, analysing and organising information (Level 2) - to process financial documentation
Communicating ideas and information (Level 2) - with members of the work team
Planning and organising activities (Level 2) - for payment of invoices etc within designated timeframes
Working with teams and others (Level 1) - in completing scheduled tasks
Using mathematical ideas and techniques (Level 2) - in reconciling financial documents
Solving problems (Level 1) - to identify discrepancies and errors
Using technology (Level 2) - to complete allocated tasks
Please refer to the Assessment Guidelines for advice on how to use the Key Competencies