Unit of competency Outline
Date retreived
22/07/2026 11:36 PM AWST
22/07/2026 11:36 PM 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.
Establish and maintain an accrual accounting system
Establish and maintain an accrual accounting system
Unit of competency
National Code
FNSBKG403A
FNSBKG403A
State Code
D4071
D4071
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
13/02/2012
Field of Education
080101 - Accounting
Original Release Date
13/02/2012
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to establish debtors and creditors, bad debt and contra entries, perform reconciliations, review compliance terms and conditions, plan a recovery action and prepare reports to set up and maintain a manual and computerised accrual accounting system.This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including various aspects of the Tax Act, Goods and Services Tax (GST) rulings.
Notes
Elements and Performance Criteria
1. Manage the chart of accounts
- 1.1. Chart of accounts is adjusted to incorporate and establish debtors and creditors as they arise
- 1.2. Debtors and creditors subsidiary ledgers are established as required
2. Process invoices, adjustment notes and other general ledger transactions
- 2.1. Invoices to debtors are raised and invoices to creditors are allocated with source documents coded and processed
- 2.2. Payments from debtors are received, processed and banked in accordance with organisational policies and procedures
- 2.3. Payments to creditors are made and processed in accordance with organisational policies and procedures
- 2.4. Adjustments are raised and allocated to correct invoices
- 2.5. Credit notes are raised for adjustments to invoices and other transactions are entered into the general ledger
3. Manage contra entries
- 3.1. Relevant persons are contacted and liaised with to verify contra deals
- 3.2. Reporting procedures and documentation for contra entries are completed in accordance with organisational policies and procedures and contra entries processed to update debtors, creditors and general ledgers
4. Identify and process bad debts
- 4.1. Bad debt status is verified through liaison with relevant persons and following attempts to work with debtors to clear debts
- 4.2. Reporting procedures and appropriate documentation are completed in accordance with organisational policies and procedures and bad debts processed to update debtors and general ledgers
5. Manage debt recovery
- 5.1. Activities and communication with debtors are reviewed in conjunction with relevant persons, if applicable, to establish adequacy of follow-up
- 5.2. Measures to collect monies, including the initiation of legal action and the seeking of expert advice, are undertaken in accordance with organisational policies and procedures
6. Prepare and produce reports and trial balance
- 6.1. Reports are produced and transactions in report are validated
- 6.2. Debtors and creditors are reconciled and relevant reports are produced with any necessary corrections made
- 6.3. Trial balance is produced and reports are presented and explained where necessary to relevant persons
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.
Organisational policies and procedures may include:
manual or computer system documentation
internal control guidelines
legal obligations
operations manuals
organisational policies and procedures including:
working with others
participating in ongoing learning
monitoring and evaluating own performance
managing own time and priorities
applying goals and visions
suspension of credit facilities
trading terms and credit limits.
Other transactions may include:
assets
capital
interest
loans
one-off purchases
private usage
taxes.
Relevant persons may include, but are not limited to:
accountants
debtors
directors
managers
owners
staff members.
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.
Organisational policies and procedures may include:
manual or computer system documentation
internal control guidelines
legal obligations
operations manuals
organisational policies and procedures including:
working with others
participating in ongoing learning
monitoring and evaluating own performance
managing own time and priorities
applying goals and visions
suspension of credit facilities
trading terms and credit limits.
Other transactions may include:
assets
capital
interest
loans
one-off purchases
private usage
taxes.
Relevant persons may include, but are not limited to:
accountants
debtors
directors
managers
owners
staff members.
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 relevant legislation
review accounts receivable and payable processes and identify bad and doubtful debts
deal with debtors in an empathetic manner
plan recovery actions in accordance with legal requirements
produce a trial balance.
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
access to a range of relevant and current industry information materials.
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 which may include formal examinations
setting and reviewing workplace projects and business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
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 relevant legislation
review accounts receivable and payable processes and identify bad and doubtful debts
deal with debtors in an empathetic manner
plan recovery actions in accordance with legal requirements
produce a trial balance.
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
access to a range of relevant and current industry information materials.
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 which may include formal examinations
setting and reviewing workplace projects and business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C9640 | FNSBKPG403A | Establish and maintain an accrual accounting system | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUQ53 | FNSBKG403 | Establish and maintain an accrual accounting system | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D703 | FNS30311 | Certificate III in Accounts Administration | Qualification |
| S701 | FNS40210 | Certificate IV in Bookkeeping | Qualification |
| D706 | FNS40211 | Certificate IV in Bookkeeping | Qualification |