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

Identify factorable invoices 
SAQA US ID UNIT STANDARD TITLE
12744  Identify factorable invoices 
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  4 
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 all learners working in factoring.

Persons credited with this unit standard will be able to demonstrate knowledge and understanding of the criteria of a good debtor, explain debtor exclusions, explain the nature of invoices too risky to discount, explain the requirements for invoices offered for discounting and analyse an offer of invoices for discounting to identify factorable invoices. 

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

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Demonstrate knowledge and understanding of factoring criteria of a good debtor 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The concept of a debtor's credit worthiness is explained with the use of examples in line with general factoring policy and practice. 

ASSESSMENT CRITERION 2 
2.The stability of the debtors business is explained as an indication of the value of the debtor from a factoring perspective with the use of examples in line with general factoring policy and practice. 

ASSESSMENT CRITERION 3 
3.The nature of the debtor's trade is explained as an indication of the value of the debtor from a factoring perspective with the use of examples in line with general factoring policy and practice. 

ASSESSMENT CRITERION 4 
4.The volume of the debtor's trade is explained as an indication of the value of the debtor from a factoring perspective with the use of examples in line with general factoring policy and practice. 

ASSESSMENT CRITERION 5 
5.The period of the business relationship between the debtor and supplier is evaluated as an indicator of the quality of the debtor according to general factoring policy and procedure. 

SPECIFIC OUTCOME 2 
Explain debtor exclusions. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The concept of excluding associated company accounts as factorable debt is explained according to general factoring policy and procedure. 

ASSESSMENT CRITERION 2 
2.The concept of excluding inter-company accounts as factorable debt is explained according to general factoring policy and procedure. 

ASSESSMENT CRITERION 3 
3.The concept of excluding contra accounts as factorable debt is explained according to general factoring policy and procedure. 

ASSESSMENT CRITERION 4 
4.The concept of excluding cash accounts as factorable debt is explained according to general factoring policy and procedure. 

ASSESSMENT CRITERION 5 
5.The business justification for each of the exclusions is explained according to the factoring house's credit policy. 

SPECIFIC OUTCOME 3 
Explain the nature of invoices too risky to discount. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The risks associated with collection of debt are explained according to general factoring policy and procedure. 

ASSESSMENT CRITERION 2 
2.The risk codes applied to debtors are explained according to the factoring house's credit policy and practice. 

ASSESSMENT CRITERION 3 
3.The characteristics of accounts considered to be un-collectable are specified according to general factoring policy and procedure. 

ASSESSMENT CRITERION 4 
4.The credit/ business motivation for excluding these debtors is explained according to the factoring house's credit policy and procedure. 

SPECIFIC OUTCOME 4 
Explain the requirements for invoices offered for discounting. 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The process for establishing the validity of an invoice is explained according to the factoring house's policy and practice. 

ASSESSMENT CRITERION 2 
2.The proof of delivery requirements, are explained according to general factoring policy and procedure. 

ASSESSMENT CRITERION 3 
3.The concept of discounting invoices occurring in the normal course of business is explained according to general factoring policy and procedure. 

ASSESSMENT CRITERION 4 
4.The requirements for identifying abnormal or out of the ordinary invoices is explained according to the factoring house's policy and procedure. 

ASSESSMENT CRITERION 5 
5.The importance of correct accounting for credit notes is explained according to general factoring policy and procedure. 

ASSESSMENT CRITERION 6 
6.Special terms are identified and their impact on the factoring value is explained according to the invoice presented and the factoring house's policy and procedure. 

SPECIFIC OUTCOME 5 
Analyse an offer of invoices for discounting to identify factorable Invoices 

ASSESSMENT CRITERIA 

ASSESSMENT CRITERION 1 
1.The debtors associated with an offer of invoices for discounting are evaluated according to the factoring criteria for a good debtor. 

ASSESSMENT CRITERION 2 
2.The un-factorable accounts are identified according to the factoring principles governing exclusions. 

ASSESSMENT CRITERION 3 
3.Invoices to be withheld from being factored on the basis of risk are identified according to the factoring principles governing risk. 

ASSESSMENT CRITERION 4 
4.Offer documentation is evaluated and signed off as acceptable according to the factoring requirements. 

ASSESSMENT CRITERION 5 
5.Requirements not met in the offer are identified and resolved in line with the operational factoring requirements. 


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.
  • 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 processing factoring transaction. 
    		•


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
  • To identify and solve problems when requirements not met for the acceptance of an offer are identified and resolved. 
    		•

    UNIT STANDARD CCFO COMMUNICATING 
  • To communicate effectively in explaining the criteria of a good debtor, risky invoices and requirements for an offer. 
    		•

    UNIT STANDARD CCFO DEMONSTRATING 
  • To demonstrate an understanding of the world as a set of related systems when the business justification for debtor exclusions is explained. 
    		•

    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
  • Contra accounts - accounts which cancel each other out.
  • Offer - a term used to refer to the invoices presented to a factoring house for discounting. 
    		•

    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.