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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Manage working capital 
SAQA US ID UNIT STANDARD TITLE
252028  Manage working capital 
ORIGINATOR
SGB Generic Management 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Generic Management 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for managers in all economic sectors. These managers would typically be second level managers such as heads of department, section heads or divisional heads, who may have more than one team reporting to them.

The qualifying learner is capable of:
  • Calculating the working capital used in a unit.
  • Analysing the working capital of a unit.
  • Managing the working capital cycle.
  • Managing the cash flow of a unit. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in:
  • Communication at NQF Level 4.
  • Mathematical Literacy at NQF Level 4.
  • Computer Literacy at NQF Level 4. 

  • UNIT STANDARD RANGE 
  • The learner is required to apply the learning in respect of this/her own area of responsibility.
  • Unit refers to the division, department or business unit in which the learner is responsible for managing and leading staff.
  • Entity includes, but is not limited to, a company, business unit, public institution, small business, Non-Profit Organisation or Non-Governmental Organisation. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Calculate the working capital used in a unit. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The components of the total capital structure and the components of the working capital are identified with reference to a unit. 

    ASSESSMENT CRITERION 2 
    The identified components of the working capital are correctly placed in the capital structure. 

    ASSESSMENT CRITERION 3 
    The driving factors behind each component of the working capital are identified and explained with examples. 

    ASSESSMENT CRITERION 4 
    The total working capital and all its components are calculated using relevant financial data. 

    SPECIFIC OUTCOME 2 
    Analyse the working capital of a unit. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Liquidity ratios are calculated and analysed using appropriate techniques and financial data. 

    ASSESSMENT CRITERION 2 
    Activity ratios are calculated and analysed using appropriate techniques and financial data. 

    ASSESSMENT CRITERION 3 
    The working capital cycle is correctly constructed using the ratios calculated. 

    ASSESSMENT CRITERION 4 
    The ratios and working capital cycle are analysed using appropriate techniques. 

    ASSESSMENT CRITERION 5 
    The resulting risks in the working capital cycle are described with examples. 

    SPECIFIC OUTCOME 3 
    Manage the working capital cycle. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Stock (inventory) levels are managed using the appropriate stock management tools. 
    ASSESSMENT CRITERION RANGE 
    Stock management tools include cost-benefit analysis, just-in-time inventory and economic order quantity.
     

    ASSESSMENT CRITERION 2 
    Methods used to collect debtors (accounts receivable) are in accordance with the credit policy of the entity. 

    ASSESSMENT CRITERION 3 
    The working capital cycle is used to determine a workable creditors (accounts payable) policy. 

    SPECIFIC OUTCOME 4 
    Manage the cash flow of a unit. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The effect the non-cash components of working capital (stock, debtors and creditors) can have on the cash flow of a unit is identified and explained with examples. 

    ASSESSMENT CRITERION 2 
    The effect of the non-cash components of working capital (stock, debtors and creditors) on the cash flow of a unit is calculated using relevant financial data. 

    ASSESSMENT CRITERION 3 
    The effects that other internal and external events and factors can have on the cash flow are explained with examples. 

    ASSESSMENT CRITERION 4 
    The effects of other internal and external events and factors can have on the cash flow of a unit are analysed using the examples. 

    ASSESSMENT CRITERION 5 
    Recommendations for improving the cash flow of a unit are formulated with explanations of their relevance to the working capital of a unit. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    N/A 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • Basic understanding of the thee core financial statements: balance sheet, income statement and cash flow statement.
  • The components of total capital structure and working capital.
  • Liquidity and activity ratios.
  • Construction of the working capital cycle.
  • Stock management tools.
  • Credit and creditors policies. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in relation to managing working capital of a unit. 

    UNIT STANDARD CCFO ORGANISING 
    The learner is able to organise and manage him/herself and his/her activities responsibly in managing the working capital of a unit. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information and applying this in managing the working capital of a unit. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and/or written presentations in communicating with team members in relation to managing the working capital of a unit. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation in applying knowledge of and insight into the management of working capital of a unit. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  79886   National Certificate: Business Advising  Level 5  NQF Level 05  Reregistered  2023-06-30  SERVICES 
    Elective  59201   National Certificate: Generic Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  As per Learning Programmes recorded against this Qual 
    Elective  61529   National Certificate: Loss Adjusting  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.