SAQA 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.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Evaluate the quality of a business` debtor administration 
SAQA US ID UNIT STANDARD TITLE
12739  Evaluate the quality of a business` debtor administration 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  16 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "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 learners who review a supplier`s debtor`s ledger and general administration on behalf of a factoring house.

Persons credited with this unit standard will be able to demonstrate an understanding of the requirements for effective book keeping practice in relation to debtors, gather the required information, verify debtor records, evaluate quality of debtor administration, identify risks and maintain a record of the review. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
There is open access to this unit standard. 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Demonstrate a knowledge and understanding of the requirements for bookkeeping practice in relation 
OUTCOME NOTES 
Demonstrate a knowledge and understanding of the requirements for effective bookkeeping practice in relation to debtors 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The basic bookkeeping requirements for the financial administration of debtors are listed according to acceptable book keeping practice. 

ASSESSMENT CRITERION 2 
2.The process for accounting for a sale from order to invoice is detailed according to acceptable book keeping practice. 

ASSESSMENT CRITERION 3 
3.The standard bookkeeping entries, journal and documentation supporting the record of accounting for a sale from order to invoice are detailed according to acceptable book keeping practice. 

ASSESSMENT CRITERION 4 
4.The standard bookkeeping entries, journal and documentation supporting the record of adjustments to the accounting records are detailed according to acceptable book keeping practice. 

SPECIFIC OUTCOME 2 
Gather the required information. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.Previous debtor reports are reviewed to establish supplier history and previous administrative quality according to the financier's policy and procedure. 

ASSESSMENT CRITERION 2 
2.The latest debtors age analysis report is obtained and reviewed according to the financier's policy and procedure. 

ASSESSMENT CRITERION 3 
3.The necessary supplier financial statements are obtained according to The financier's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Debtor accounts, creditor accounts, management accounts. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 4 
4.The specific working papers are obtained according to the financier's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Details of orders, invoice, proof of delivery, credit notes, claims, statements, debtor accounts, all journal entries associated with sales transactions and debtors records. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 5 
5.The supplier's creditworthiness is evaluated in terms of analysis of payments made to creditors. 

ASSESSMENT CRITERION 6 
6.The supplier's compliance with financial statutory regulations is evaluated in terms of analysis of statutory payments. 

SPECIFIC OUTCOME 3 
Verify debtor records 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.A sample of debtor records is selected for detailed scrutiny according to prudent accounting practice and the financier's policy and procedure. 

ASSESSMENT CRITERION 2 
2.All the paper work associated with a sample of sales transactions is obtained according to prudent accounting practice and the financier's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Order, invoice, proof of delivery, credit notes, claims, statements, debtor accounts, all journal entries associated with the transaction. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 3 
3.The paper flow and accuracy of the associated accounting entries are evaluated according to prudent accounting practice and the financier's policy and procedure. 

ASSESSMENT CRITERION 4 
4.The entries are checked, balanced and reconciled back to the recorded debtor figures reflected in the debtor account. 

ASSESSMENT CRITERION 5 
5.Differences are investigated according to prudent accounting practice and the financier's policy and procedure. 

ASSESSMENT CRITERION 6 
6.An explanation of causes and reasons for differences is obtained, and the debtor records corrected according to prudent accounting practice and the financier's policy and procedure. 

ASSESSMENT CRITERION 7 
7.Errors identified or problems arising are resolved with the supplier according to prudent accounting practice and the financier's policy and procedure. 

ASSESSMENT CRITERION 8 
8.The scrutinised debtor accounts are verified against the records provided by the supplier to factoring to test the integrity of information provided. 

ASSESSMENT CRITERION 9 
9.The accuracy and validity of the supplier's debtor records is established and signed off as accurate according to the assessor's analysis and in line with prudent accounting practice and the financier's policy and procedure. 

SPECIFIC OUTCOME 4 
Evaluate quality of debtor administration 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The efficiency of the supplier's paper flow is evaluated according to factoring requirements, prudent bookkeeping/ accounting practice and the financier's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Order, invoice, proof of delivery, credit notes, claims, statements, debtor accounts, all journal entries associated with sales transactions, payments, non-payment and debtors records. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 2 
2.The effectiveness of the suppliers credit control is evaluated according to factoring requirements, prudent bookkeeping/ accounting practice and the financier's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Record of methods used, practices, procedures and process for verifying debtors. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 3 
3.The efficiency and accuracy of the suppliers claim procedure is evaluated according to factoring requirements prudent bookkeeping/ accounting practice and the financier's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Criteria, policy, procedure, practice, frequency and typical examples. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 4 
4.The efficiency and accuracy of the supplier's credit note procedure is evaluated according to factoring requirements prudent bookkeeping/ accounting practice and the financier's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Criteria, policy, procedure, practice frequency and typical examples. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 5 
5.The supplier's bad debt management and control is evaluated according to business norms, prudent bookkeeping/ accounting practice and the financier's policy and procedure. 

ASSESSMENT CRITERION 6 
6.Book keeping procedures that deviate from factoring requirements are identified and brought to the suppliers attention according to prudent accounting practice and the financier's policy and procedure. 

ASSESSMENT CRITERION 7 
7.Where administration procedures are unacceptable, the supplier is advised of the specific factoring houses requirements according to prudent accounting practice and the financier's policy and procedure. 

SPECIFIC OUTCOME 5 
Identify risks 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The credit risks associated with the inadequate debtor administration are understood and explained according to factoring requirements and in line with the financier's policy and procedure. 

ASSESSMENT CRITERION 2 
2.Specific credit risks associated with debtor administration are identified and reported according to the financier's policy and procedure. 

ASSESSMENT CRITERION 3 
3.Specific short-term risks associated with creditor turnover are identified and reported according to the financier's policy and procedure. 

ASSESSMENT CRITERION 4 
4.Specific short term risks associated with statutory payments are identified and reported according to the financier's policy and procedure. 

ASSESSMENT CRITERION 5 
5.The potential for fraud in debtor administration is understood and explained according to factoring requirements and in line with the financier's policy and procedure. 

ASSESSMENT CRITERION 6 
6.Specific anomalies are investigated to establish whether the debtor records have been fraudulently distorted according to prudent accounting practice and the financier's policy and procedure. 

ASSESSMENT CRITERION 7 
7.An explanation of causes and reasons for identified anomalies is obtained from the supplier and evaluated according to prudent accounting practice and the financier's policy and procedure. 

ASSESSMENT CRITERION 8 
8.Practices associated with fraud are identified and reported according to company policy and procedure. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
1.Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
2.Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
3.Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefore, anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution that is accredited by the relevant ETQA. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
General knowledge of the factoring industry
Knowledge of the company`s range of products and services, and the associated rules and regulations relating to factoring.
Operating and computer systems knowledge sufficient to locate the necessary information and complete the task/function
General understanding of the specific risks and relevant policies relating to factoring. 


Critical Cross-field Outcomes (CCFO): 

UNIT STANDARD CCFO IDENTIFYING 
  • To identify and solve problems specific anomalies are investigated to establish whether debtor records have been fraudulently distorted. 
    		•

    UNIT STANDARD CCFO ORGANISING 
  • To organise and manage oneself and one`s activities responsibly and effectively when differences in the suppliers accounting records are investigated. 
    		•

    UNIT STANDARD CCFO COLLECTING 
    To collect, organise and critically evaluate information when the specific working papers relating to debtor administration are obtained and evaluated. 

    UNIT STANDARD CCFO COMMUNICATING 
  • To communicate effectively both verbally and in writing when specific short-term risks associated with creditor turnover and statutory payments are identified and reported. 
    		•

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

    UNIT STANDARD NOTES 
    Legal Requirements

    All procedures must meet recognised codes of practice as well as obligations required by current legislation within South Africa and within the normal parameters of the defined job/task.

    Terminology

    Supplier - A term used in factoring to refer to the party who supplies the invoices for discounting. The term is used to distinguish this party from the terms used for debtors and creditors.
    Debtor`s age analysis - a report reflecting the length of time debts have been outstanding (expressed in the following terms current i.e. within 30 days of invoice; 30 days after invoice; 60 days after invoice; 90 days after invoice; 120 days after invoice and 120 plus). 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  57901   Further Education and Training Certificate: Credit Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  FASSET 
    Elective  65989   Further Education and Training Certificate: Human Settlements Development  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  CETA 


    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.