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: 

Calculate advance against offer of invoices presented for discounting 
SAQA US ID UNIT STANDARD TITLE
12741  Calculate advance against offer of invoices presented for discounting 
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  8 
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
2026-06-30   2029-06-30  

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 individuals responsible for payouts pertaining to invoices offered for factoring.

Persons credited with this unit standard will be able to identify risks associated with debtor advance, assess the offer, evaluate the quality of debtors, calculate the amount of the advance and prepare an acknowledgement of offer. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
Open. 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Identify risks associated with the offer of invoices. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The specific accounting practices involved in correctly accounting for goods sold to debtors are understood and explained according to general accounting principles and in line with the financier's specific procedures. 

ASSESSMENT CRITERION 2 
2.The principles and practice for excluding/ withholding invoices from factoring payouts are understood and explained according to prudent factoring practice and in line with the financier's policy and procedure. 

ASSESSMENT CRITERION 3 
3.The principles and practice for correctly allocating debtor transactions in the factoring houses books are understood and explained according to prudent factoring practice and in line with the financier's policy and procedure. 

ASSESSMENT CRITERION 4 
4.The risks associated with fraudulent practices on the supplier's behalf are understood and explained according to general financial principles and in line with financier's specific procedures. 

ASSESSMENT CRITERION 5 
5.The risk management procedures are understood and explained according to the financier's specific procedures. 

ASSESSMENT CRITERION 6 
6.The credit risk implications of an inaccurate calculation of advance are understood and explained according to the financier's specific procedures and in line with the credit policy and procedure. 

SPECIFIC OUTCOME 2 
Assess the offer. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.Details of the suppliers offer are obtained in the manner required by the specific factoring house and in line with the financier's policy and procedures. 

ASSESSMENT CRITERION 2 
2.Details of invoices offered for factoring are obtained in the manner required by the specific factoring house and in line with the financier's policy and procedures. 

ASSESSMENT CRITERION 3 
3.Supporting documentation is scrutinised to establish that the goods have been delivered to the debtor according to accepted trading practice and in line with the financier's policy and procedures. 

ASSESSMENT CRITERION 4 
4.Debtors to be excluded are identified according to general factoring practice and in line with the financier's policy and procedures. 
ASSESSMENT CRITERION RANGE 
Associated company accounts, inter-company accounts, contra's, cash accounts, weak debtors and debtors with overdue debts. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 5 
5.Un-collectable (un-factorable debts) are identified according to company policy and procedure. 
ASSESSMENT CRITERION RANGE 
Cash accounts, liquidations, long overdue accounts, risky accounts, accounts handed over for collection. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 6 
6.Invoices not discounted on the basis of risk are noted and withheld from processing according to the financier's credit policy and procedures. 

SPECIFIC OUTCOME 3 
Evaluate the quality of debtors. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The credit worthiness of each debtor is established in the manner required by the company. 

ASSESSMENT CRITERION 2 
2.The invoices are assessed to establish that they are in the normal course of business according to supplier's relationship with the debtor. 
ASSESSMENT CRITERION RANGE 
Interest invoices, invoices raised in respect of money lent to a debtor, goods sold on consignment, sample goods, goods that can be returned. Evidence of competence across the full range is required for competence.
 

ASSESSMENT CRITERION 3 
3.The value of the invoice is evaluated against the internal trade limits set for the debtor. 

ASSESSMENT CRITERION 4 
4.Where required, invoices deemed to be outside of the normal course of business are referred for further investigation according to the company's risk management policy and practice. 

ASSESSMENT CRITERION 5 
5.Where required, invoices deemed to be outside of the assigned trading limits are referred for further authorisation according to the company's risk management policy and practice. 

SPECIFIC OUTCOME 4 
Calculate the amount of the advance. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The processed offer is evaluated to ensure that the invoices and associated transactions have been correctly allocated in the factoring records according to general factoring practice and in line with the company's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Invoices, debtor funds, credit notes, claims, payments, non- payment, disputes, overdue accounts. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 2 
2.The appropriate retention amount is calculated according to the agreement with the supplier and in line with the company's credit policy. 

ASSESSMENT CRITERION 3 
3.Fees are calculated according to the agreement with the client and in line with the company's pricing policy. 

ASSESSMENT CRITERION 4 
4.The advance based on the offer is calculated according to standard factoring practice and in line with company policy and procedure. 
ASSESSMENT CRITERION RANGE 
Net value of debtors book, exclusions, retention, fees, within the suppliers credit and trading limits. Evidence of competence across the entire range is required.
 

SPECIFIC OUTCOME 5 
Prepare acknowledgement of offer. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The nature and form of the acknowledgement of offer is understood and explained according to legal practice and in line with the company's policy and procedure. 

ASSESSMENT CRITERION 2 
2.The correct value of invoices not advanced/ not factored is specified according to the offer and the factoring records. 

ASSESSMENT CRITERION 3 
3.The correct value of the invoices advanced against and factored is specified according to the offer and the factoring records. 

ASSESSMENT CRITERION 4 
4.The correct retention amount is specified according to the offer and the factoring records. 

ASSESSMENT CRITERION 5 
5.The charges are specified according to the calculations and factoring records. 

ASSESSMENT CRITERION 6 
6.The value of any surplus retention is specified according to the factoring records. 

ASSESSMENT CRITERION 7 
7.The amount paid into the supplier's bank account is specified according the factoring records. 


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 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 transactions. 
    		•


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
  • To identify and solve problems when invoices are assessed to establish that they are in the normal course of business. 
    		•

    UNIT STANDARD CCFO ORGANISING 
  • To organise and manage oneself and ones activities responsibly and effectively when calculating the amount of the advance and prepare an acknowledgement of the offer. 
    		•

    UNIT STANDARD CCFO COLLECTING 
  • To collect, organise and critically evaluate information when assessing an offer of invoices to establish the appropriate advance. 
    		•

    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.
    Offer - a term used to refer to the invoices presented to a factoring house for discounting.
    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).
    Retention - an agreed amount of the invoices retained by the factoring house until the invoices have been collected. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  20185   Further Education and Training Certificate: Banking  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  BANKSETA 


    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.
     
    1. AAR Trading and Projects (Pty) Ltd 
    2. Advanced Assessments and Training (Pty) Ltd 
    3. Africa Glory Empowerment Services 
    4. Assured Vocational Skills Institute (Pty) Ltd 
    5. Brainwave Project 707 Pty Ltd 
    6. Brainwave Projects 707 
    7. Compuscan Academy 
    8. DC Academy 
    9. Delmas Development Centre 
    10. Fachs Business Consulting and Training 
    11. Gigimo Tourism Academy 
    12. MAT 007 (PTY) LTD 
    13. Matibidi Raphela Investments (Pty) LTD 
    14. Octomate Education Pty Ltd 
    15. Octopus Training Solutions 
    16. Production Management Institute of Southern Africa (Pty) Ltd 
    17. RIAPHATHUTSHEDZA 
    18. SIGNA ACADEMY (PTY) LTD 
    19. Sinovuyolethu Trading (Pty) Ltd 
    20. THE SHERQ CENTRE OF EXCELLENCE PTY LTD 


    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.