Unit of competency Outline

Date retreived
23/07/2026 1:33 AM AWST

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Manage and recover bad and doubtful debts

Manage and recover bad and doubtful debts

Unit of competency
National Code
FNSCRD413
State Code
OEC02
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
15/06/2022
View on TGA
State Implementation and Classification
Approved Date
07/12/2022
Field of Education
080101 - Accounting
Original Release Date
07/12/2022
Nominal Hours
30
Description
This unit describes the skills and knowledge required to correctly identify bad debts, negotiate with customers and determine means of recovery using actions in line with relevant credit policy.The unit applies to individuals who work cooperatively with others using a range of managerial and communication skills to facilitate debt recovery processes.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant state and territory regulatory authorities to confirm those requirements.
Notes
Elements and Performance Criteria
1. Determine and implement appropriate action to recover outstanding debt
  • 1.1 Review account history and devise potential recovery actions
  • 1.2 Advise customers promptly of possible implications of outstanding debts
  • 1.3 Resolve any customer objections according to organisational guidelines and legislative requirements
  • 1.4 Document agreed payment arrangements according to organisational system requirements
2. Monitor and review effectiveness of recovery action
  • 2.1 Review customer accounts for their adherence to agreed payment arrangements
  • 2.2 Identify customer non-compliance with agreed arrangements and manage according to organisational guidelines
  • 2.3 Involve internal stakeholders in review and monitoring process as required
3. Determine and document eligibility for write-off
  • 3.1 Re-assess account to determine if it is appropriate for write-off as agreed payment arrangements have not been met, as required
  • 3.2 Document recommendations for write-off and account closure, complying with legislation and organisational guidelines
No information
No information
Replaces
State Code National Code Title Type
AUQ74 FNSCRD403 Manage and recover bad and doubtful debts Unit of competency