FNSICACC301A: Administer accounts payable

Application of Unit

This unit requires the application of attention to detail and the ability to follow organisational procedures accurately in arranging for and administering accounts payable. It may be applied within the accounts areas of financial institutions.

Unit Sector

No sector assigned

Performance criteria

Element / Performance criteria
1. / Distribute creditors invoices for authorisation / 1.1 / Invoice discrepancies are identified, investigated and rectified
1.2 / Invoices are encoded and recorded correctly
1.3 / Authorisation for payment is requested of appropriate personnel
2. / Remit payment to creditors / 2.1 / Authority to pay invoices is obtained in accordance with organisation's policies and procedures
2.2 / Cheque requisition is correctly drawn up and authorised
2.3 / Correct general ledger to be drawn against is identified
2.4 / Correct account is debited in a timely manner and in accordance with legislative and compliance requirements
2.5 / Creditors payments are prepared in an accurate manner
3. / Prepare accounts paid report / 3.1 / Data is collected and entered onto spreadsheet giving details of creditors and amounts paid
3.2 / Report on accounts paid is prepared for ratification by appropriate management
4. / Reconcile balances outstanding / 4.1 / Statements of outstanding balances are sought from suppliers where required
4.2 / Balances outstanding are reconciled to invoices received

Key competencies

The seven key competencies represent generic skills considered for effective work participation. The numbering against each of the key competencies indicates the performance level required in this unit. Performance Level 1 - at this level, the candidate is required to undertake tasks effectivelyPerformance Level 2 - at this level, the candidate is required to manage tasksPerformance Level 3 - at this level, the candidate is required to use concepts for evaluating and reshaping tasks

Key Competency / Example of Application / Performance Level
Communicating ideas and information / Obtaining the authority to pay invoices and administering accounts payable including following up outstanding balances will require written and spoken communication skills. / 2
Collecting analysing and organising information / Collecting account information, obtaining authority to pay, recording all account details into database will require organisational skills and compliance with relevant legislative requirements. / 2
Planning and organising activities / Administering accounts payable will require the organisation's policies and procedures to be followed accordingly. / 1
Working with others and in teams / Assisting other team members to complete work where necessary and obtaining relevant information from other departments or external clients will require teamwork skills. / 1
Using mathematical ideas and techniques / Calculating errors and discrepancies in reconciling accounts will require sound mathematical skills. / 2
Solving problems / Identifying and investigating errors and seeking to rectify them will require problem solving skills. / 2
Using technology / Using the organisation's databases, including accounting related software packages and spreadsheets, will require the ability to use technology. / 1

Skills and Knowledge

Range statement

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.

Appropriate personnel may include: /
  • accounting personnel
  • business/unit or departmental managers

Organisation's policies and procedures may relate to: /
  • policies and procedures for the authorisation of invoices, payments and cheque requisitions and the terms and conditions associated with payments to sundry creditors

Appropriate management would depend on: /
  • industry and company requirements, and may include the Board of Directors or a designated group from the Board of Directors (eg the Executive)

Relevant legislation and compliance requirements may include: /
  • Consumer
  • Consumer Credit Code
  • Privacy Act
  • Secrecy Laws
  • codes of practice
  • Competition
  • Australian Competition and Consumer Commission (ACCC)
  • Prudential
  • Financial Institutions (FI) Code
  • Credit Reference Association of Australia (CRAA)
  • Electronic Funds Transfer (EFT) code of conduct
  • Financial Transaction Reports Act
  • Cheques and Payment Orders Act
  • Corporate Law
  • Commercial Tenancies Act
  • Land Tax Assessment Act
  • Prescribed Payments Act
  • Payroll Tax Assessment Act
  • Stamp Duties Act
  • Taxation Assessment Act
  • Bills of Exchange Act

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 of Variables applicable to the workplace. Overview of assessment requirements To achieve competency in this unit, a person must be able to demonstrate: thorough checking of invoices, remittance payments and balances outstanding sound knowledge of relevant legislation sound communication skills in liaising with departmental managers and creditors/suppliers demonstrated understanding of bank account reconciliation process demonstrated ability to use relevant data entry and office equipment

Evidence required for demonstration of consistent performance: /
  • Competency is demonstrated by performance of all stated criteria according to the Range of Variables applicable to the workplace.

Delivery/relationship to other units: /
  • This unit may be assessed independently.

Method of assessment: /
  • For valid and reliable assessment of this unit, evidence should 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 the unit should be undertaken in an industry context.
  • Aspects of competency, including attainment of relevant knowledge and skills may be assessed in a simulated work environment.

Resources required for assessment: /
  • Assessment of this unit of competence requires access to company policies and practices, relevant information technology (IT) systems and the databases of the financial services company.