Roleplay – Skills Assessment 2 (Part A)

 Roleplay 1 : Conversation between Accounts receivable (me) from Connelly Pty Ltd and
clients of Connelly Pty Ltd : Dale Hurst & Sean smith (Trading as Hurst & Smith Plumbing)
who owe Connelly pty ltd $2995.00 which is now in breach of the credit limit.
 Experiencing financial difficulties, Dale Hurst & Sean smith have been invited to come to
your offices to discuss a mutually agreed repayment plan.
 Clients will say the company can afford to pay upto $350 per month to clear debt.
 Client has not made a payment to Connelly Pty Ltd for 75 days.
 Assume date of conversation is 31 March 20x1

Roleplay Participants:

 Accounts receivable (me)

 Dale Hurst
 Sean Smith
 Supervisor

Conversation should be around 5-10 minute long

Accounts receivable (me)

Good afternoon, hope you’re all doing well today. I would like to thank you all for coming in. As you
may already know I’m Manal, the accounts receivable at Connelly pty ltd.
I've called this meeting today to discuss the outstanding debt by your company, Hurst & Smith
plumbing. I understand that you have gone over your credit limit, and I want to discuss what
we can do to address this issue and prevent it from occurring in the future.
Dale Hurst: Good afternoon. We appreciate the opportunity to discuss this with you.
Sean Smith: Yes, thank you.
As you both know, your account payment of $2995.00 has been outstanding for over 75 days,
breaching out credit terms of net 30 days after date of invoice. Our first contact was made on
15th February, for a reminder of the payment. I got no response via email, so I spoke to your
accounts clerk over the phone, where we were told that the payment will be made end of month
on the next payment run. However, we didn’t receive any payment as promised. Today, we
would like to secure a payment date and place a hold on further delivery of goods/ services, we
can no longer process any further orders till the account has been paid for .
Due to the outstanding amount, we are currently facing cashflow issues, as we are unable to pay
our suppliers and employees. Our suppliers have placed our account on hold, and some of them
have even changed our payment terms to prepaid.
My question to your company is, what is the reason for the outstanding payment? Is the invoice
disputed? Are there any quality issues or you are not satisfied with the service provided? Or are you
also facing some cashflow issues due to delayed payment from customers?

Sean smith:
Well, due to covid, our business has been really affected as we are no longer doing house or
individual plumbing services, except for our contractors. Thus, we have been struggling to pay
our dues during this period.

Accounts receivable (me)

I understand it must be a difficult time for your company. So taking into consideration the
financial position of your business, I am sure we can come to a mutual agreement of how this
debt can be handled. First of, lets create a plan to make sure your payments are back on track.
We can work together on a repayment plan to pay off the overdue balance as quickly as possible.
Are there any questions or concerns you might have about managing your balance or credit line
moving forward?
Dale Hurst

Actually, Sean and I have come up with a mutual agreement of paying back the debt over a
period of time. At the moment, we can only afford to pay upto $350.00 per month in order to
clear up the debt.
Accounts receivable (me)

Dale, I understand the situation is tough at the moment, but the repayment plan cannot be
more than 6 months from today ( 31 march 20x1)according to our company policy. With the
payment of 350 a month, you will be going over the 6-month limit.

How about we settle for $600 a month? So the payment is done within 5 months’ time.

Sean smith:
Taking into account our financial situation, this is a very unrealistic amount for us.
Dale Hurst

How about we agree to $500 a month and the payment would still be done within the 6-month
timeframe? It is a far reach for us, but with a tight budget, we can make it happen.
Accounts receivable (me)

As long as we all agree on sticking to our agreement for the next 6 months, I don’t have any
problems. However, failure to meet agreed time frame for payments, would lead to us having to
change your credit terms to pre-paid, and taking further legal action to get the outstanding
invoices paid.
*Dale and sean agree.*
Sean smith : Hopefully it wont come down to that. We will be making out first payment of $500
today, which will be followed through in the next upcoming months.
Accounts receivable (me)
Great! Thank you all for attending the meeting, and I’m glad we could come to an agreement 😊Hope
you all have a lovely afternoon.

Meeting ends.
Role play part 2: Conversation with the senior accountant
Accounts receivable:
Good Afternoon David,
Thank you for taking your time out and attending the meeting today.
The purpose of the meeting today is to inform you of the repayment plan that was discussed
with sean and dale from Hurst & Smith Plumbing. The client has spoken to us about the
possibility of paying back their debt in instalment payments, rather than the lump sum amount
of $2995.00 they owed us.
Senior accountant:
How so? Are they struggling to pay all at once?
Accounts receivable:
Yes. With their business struggling after covid, I believe that the new agreed approach may
provide our client with greater financial stability, resulting in a faster repayment of the full
balance as business goes back to usual.
They came into the office to discuss their outstanding debt and proposed a repayment plan of
$350 per month. Based on their proposal, it would take approximately 9 months to clear the
debt.
However, after a bit of renegotiation, I made sure that the re-payment plan lies within our 6-
month term as per company policy.
The repayment plan is as follows:
Hurst & smith will be paying us $500 a month for 6 months
Each payment will be due end of month.
Their account will be paid off fully in 6 months time.
*Senior accountant reviews debt collecting plan”
Senior accountant: what If they fail to make the payment on time? have you discussed this with
them?
Accounts receivable: Yes, I have discussed this with them. If they fail to make the payments as
per our agreement, we will send them a final notice and take legal action if necessary
Senior accountant: That sounds like a reasonable plan. I'm glad you were able to work out a
mutually beneficial solution with the clients. I trust that you have thoroughly reviewed their
financial situation and ability to make these payments.
Accounts Receivable: Absolutely, I've made sure to document everything and have the
agreement signed by both parties. I will be monitoring their payments closely to ensure they
meet their obligations.

Senior Accountant: Great, it sounds like you've handled this situation well. Let me know if
there's anything else I can do to assist.

Accounts Receivable: Thank you, I appreciate your support. I'll keep you updated on the
progress of their payments.

Greeting and introduction

1. Purpose of meeting

2. Gain authorisation for debt collection plan

3. Close the conversation

 Debt Collection Plan - Hurst & Smith Plumbing
Information
Customer name & position
Amount owing
No Days in arrears
Action taken to date
(specify type of contact)
Specify repayment amount and
frequency
Date
Date debt will be repaid
Senior Accountant approval
Details
Sean Smith & Dale Hurst – Company Directors
$
$2995.00
75 Days from Date of Invoice
First contact –reminder of payment via email.
Overdue reminder notice – over the phone. Told that the payment will be
made E.O.M.
Second Contact – asked to meet Dale and sean in person to secure
payment date and come up with payment plan
$500 a month – for a period of 6 months
31 March 20x1
31 September 20x1