RIFT VALLEY UNIVERSITY

Training, Teaching and Learning Materials

RIFT VALLEY UNIVERSITY

ACCOUNTING AND BUDGET SUPPORT

Learning Guide
Unit of Competence Process Customer Complaints
Module Title :- Processing Customer Complaints
LG Code: BUF ACB3 18 0812

TTLM Code: BUF ACB3M 18 0812

INTRODUCTION

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TTLM Development Manual Date: 28/02/2018
PREPARED BY ACCT DEPARTMENT
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

Welcome to the module “Process Customer Complaints”. This learner’s guide was
prepared to help you achieve the required competence in “Accounts and Budget Support
Level III ”. This will be the source of information for you to acquire knowledge attitude
and skills in this particular occupation with minimum supervision or help from your
trainer.

Summary of Learning Outcomes

After completing this learning guide, you should be able to:

Lo1:- Respond to complaints
Lo2:- Refer complaints
Lo3:- Exercise judgement to resolve customer service issues

How to Use this TTLM

o Read through the Learning Guide carefully. It is divided into sections that
cover all the knowledge, skills and attitude that you need.
o Read Information Sheets and complete the Self-Check at the end of each
section to check your progress
o Read and make sure to Practice the activities in the Operation Sheets. Ask
your trainer to show you the correct way to do things or talk to more
experienced person for guidance.
o When you are ready, ask your trainer for institutional assessment and provide
you with feedback from your performance.

Lo1:- Respond to complaints

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TTLM Development Manual Date: 28/02/2018
PREPARED BY ACCT DEPARTMENT
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

Consumer and company interactions are a part of everyday life. In a perfect

world, products and services would meet all the needs of a consumer but this is
not the case. So making a complaint or an inquiry is not only a customer's right
when he has been wronged, but it is also a way for a company to improve its
product. A well thought out complaint procedure is sure to increase the
effectiveness of your complaint and minimize the time it takes to get results.

1. Problem Arises
o Identify your problem. Was it with product or was it a customer
service issue? From here, you should then map out what it is you
want to get out of making a customer complaint.
Evidence is also critical here. Take photos or videos where
necessary. This will strengthen your case should your credibility be
called into question. Sometimes, these kinds of problems may end
up in court so organization is crucial if you want to win in the end.

Choose a Method

o There are a few ways you can go about making a complaint. One
of the most common is a telephone inquiry. Some companies have
a department set up specifically for this purpose while others have
it as an extension of another department, such as human resources.

Putting a complaint in writing is a more formal approach. Some

companies have websites in which you can submit the specifics of
your problems. Snail mail is another option but stands to take
longer.

By far, the most direct way is to make a complaint in person. This

may take the form of meeting with a representative or dealing
directly with a manager.

Complaint Tips

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TTLM Development Manual Date: 28/02/2018
PREPARED BY ACCT DEPARTMENT
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

o Don't let anger fuel your complaint. Keeping calm and cool when
dealing with a company's representative will ensure a steady
exchange of communication as well as build a non-hostile
environment.

Be pushy, but respect boundaries. An assertive approach will show

you mean business but do not let your temper get out of control. If
you do not reach anyone on your first attempt, stay with it. If your
complaint is valid, it deserves the relevant attention.

Timing is crucial when making a complaint. As soon as you are sure

you have been wronged, make contact. Sitting on the issue will only
lessen your case.

OPERATION SHEET 1: Work within financial services industry guidelines,

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TTLM Development Manual Date: 28/02/2018
PREPARED BY ACCT DEPARTMENT
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

Procedures and legislation

Purpose:

This learning outcome aims to provide trainees with the knowledge, skill and attitude of
.financial services industry guidelines, procedures and legislation. Understanding the
concept and apply practically.

Equipment, Tools and Materials:

 Computer
 Projector
 White board
 White board marker &Duster
 Lecture room
 Printer

Conditions:

Students and trainer’s are legally required to lock the health and safety of trainer. This
applies to all organizations and including voluntary organizations.

 Students must provide safe working environment.

 Students must not put themselves or others at risk

Procedure:

 Prepare guides
 Prepare legislations
 Prepare procedures
 Prepare list of abbreviations that we use in the accounting terms
Quality Criteria:

The trainee must be practice properly and organize microcomputer work environment
100% suitable for working health and safety.

Self Check
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TTLM Development Manual Date: 28/02/2018
PREPARED BY ACCT DEPARTMENT
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

1. Describe basic steps to follow when dealing with a customer’s complaint?

2. Describe Procedures for handling customer complaints

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TTLM Development Manual Date: 28/02/2018
PREPARED BY ACCT DEPARTMENT
 RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

Lo2:- Refer complaints

Procedures for handling customer complaints

Customer complaints are usually about poor service, faulty goods or goods that
don’t meet the customer’s needs. A skilled employee can turn a customer
complaint into a positive experience for the customer.

If an employee receives a customer complaint it should be dealt with quickly

and sympathetically. The customer should be thanked for taking the time to
highlight a problem with service or product. The majority of customers who
have a problem with a business don’t complain directly to the business - they
just don’t deal with the business again, and they tell their friends about the
faulty product or poor service they received. The ramifications for the business
are that they have definitely lost one customer and probably many more as the
tale of their faulty product or service is spread by word of mouth. The business
can’t do anything about it because they don’t know about it. Therefore the
customer who complains is a person who is doing a service to the business and
they should be treated accordingly.

Here are some basic steps to follow when dealing with a customer’s complaint.

 Greet the customer, smile and tell them your name.

 Ask the customer for their name (always be respectful and use their title
Mr, Mrs etc). Once they have given you their name continue using it
throughout the discussion.
 Ask the customer the details of the complaint (it doesn’t work, couldn’t
hear the microphone or the technician arrived late). Try not to interrupt
the customer as people can become stressed when they are interrupted,
particularly if it happens in the middle of a sentence.
 Acknowledge their distress about the problem. This is important as they
won’t be interested in a solution until they have had their chance to vent
their anger.

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TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
 RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

 Paraphrase their problem back to them to ensure you have all the facts and
they are reassured that you have been listening to them.
 Offer a solution (exchange the faulty product, offer a reduction of fees).
 Give them something extra (an upgraded product, a discount on their next
service, a voucher they can spend in the shop).
 Thank them for assisting you by pointing out a problem and apologise for
their inconvenience. Take care not to admit liability for the problem, just
apologise for their inconvenience and distress.
 Record details about the complaint such as customer’s name and contact
details, the product or service, how you dealt with it and how the
customer reacted.
 Ring the customer a few days later to see if they are satisfied with their
replaced product. Follow up after a problem ensures repeat business.

Sometimes an easy solution is not possible, and the complaint is beyond your
level of authority to solve and must be passed on. If this is the case, write down
the customer’s details and the nature of the problem, and, if possible, speak to
the person you have referred the customer too. Let the customer know what you
are doing so they do not feel excluded. It is important that the customer doesn’t
have to repeat the problem to your supervisor, as this can become frustrating to
the customer. If immediate assistance from a supervisor is not possible, tell the
customer that their complaint will be looked at as soon as your supervisor is
available. A follow up phone call after any complaint is a very good way of
ensuring the customer will be a repeat customer.

Sometimes a customer can be so angry that they will raise their voice at you
immediately. Do not take this personally and raise your voice back at them.
Their intention is often to create a ‘scene’ and to make other customers
uncomfortable. They hope that this will make you give them what they want
immediately, to avoid upsetting other customers. In this situation, do not raise
your voice, stay calm and continue to question them about their grievance.
Often you will have to repeat a question as they were so upset they didn’t
answer it the first time you asked. Use respectful language and don’t be rude to
the customer, no matter how rude and inconsiderate they are being to you. Try
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TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
 RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

to move them away from other customers, or maybe take them to the office or a
more isolated part of the shop. Without an audience they will settle down.

If you feel the situation is beyond your ability to deal with, call for assistance
from your supervisor. When your supervisor arrives, paraphrase the customer’s
problems so the customer is made aware that you were paying attention. It also
avoids the customer becoming upset again by having to repeat the problem.

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TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
 RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

OPERATION SHEET 1: Work within financial services industry guidelines,

Procedures and legislation
Purpose:

This learning outcome aims to provide trainees with the knowledge, skill and attitude of
.financial services industry guidelines, procedures and legislation. Understanding the
concept and apply practically.

Equipment, Tools and Materials:

 Computer
 Projector
 White board
 White board marker &Duster
 Lecture room
 Printer

Conditions:

Students and trainer’s are legally required to lock the health and safety of trainer. This
applies to all organizations and including voluntary organizations.

 Students must provide safe working environment.

 Students must not put themselves or others at risk

Procedure:

 Prepare guides
 Prepare legislations
 Prepare procedures
 Prepare list of abbreviations that we use in the accounting terms
Quality Criteria:

The trainee must be practice properly and organize microcomputer work environment
100% suitable for working health and safety.

4
TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

Self Check

3. Describe basic steps to follow when dealing with a customer’s complaint?

4. Describe Procedures for handling customer complaints

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TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

Lo3:- Exercise judgement to resolve customer service issues

Authorised personnel may include: dispute resolution officer

 employees
supervisors and managers

Transactions may be processed: using manual or electronic systems

 using the standard procedures and systems of the financial services
institution and may include:
 bank cheques
 credit card transactions
 debits such as from:
 savings accounts
 cheque accounts
 inward credits/outward payments
 payroll deductions
Periodic payments.

Customer transactions are processed in an accurate and timely manner using standard
policies, procedures and systems
Documentation or systems entry to support transactions is checked for accuracy and
completeness and customer account and transaction details maintained and verified using
correct procedures
Customer complaints and disputes are resolved or referred to other authorized personnel
and customer accounts are rectified where necessary
 The relevant financial services organisation's policies, procedures and systems may relate
or be influenced by: administrative and clerical systems
 database and IT systems
 product and account and service range
 range of responsibility
 size, type and location of branch
types of equipment used.

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TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

Accurate reconciliation of subsidiary ledgers to general ledger accounts is performed and fees

appropriate to the transaction are levied in accordance with standard procedures

Types of Sales Order Systems

Information Sheet – 1

Various relationships between the order, billing, and shipping functions are feasible depending on the

circumstances. The major consideration is the preparation of the invoice. In a complete pre-billing

system, the complete invoice is prepared at the same time as the shipping order. In this case, the shipping

order is usually a copy of the invoice. This system minimizes paperwork. The invoice is released after the

goods are shipped. A complete pre-billing system requires that all invoicing information be known prior to

the preparation of the invoice/shipping order set. This requires few back-orders or other inventory

problems. Also, freight and other charges must be either absorbed by the seller or standardized (e.g., “add

50 cents fir postage”). Any change between the customer order as rewritten and as actually shipped

requires a new invoice and the destruction of the original invoice. If such situations are common, complete

pre-billing is very inefficient.

The shipping order is prepared separately from the invoice. The invoice is prepared after the goods have

been prepared for shipment. A separate order and billing system is necessary when there is a significant

difference between the information on the shipping order (internal to the seller) and the invoice. For

example, technical specifications in the shipping order may not be required or desired on the invoice.

Excessive back-order and out-of-stock conditions also warrant this approach, because the final content of

the invoice cannot be determined until the goods are ready for shipment. In many industries, alterations of

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TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

substitution of goods ordered are allowed by customary trade practices. In retailing, for example, different

styles or colors may be substituted in an order for clothing. The changed specifications from the

customer’s order must be shown on the invoice. In other instances, several shipments are made to the

same customer over a specific time period under a single blanket order. In this case, there is no one-to-

one correspondence between the customer order and the subsequent invoices. Typically, one blanket order

requires several separate invoices-- one for each shipment made under the blanket order.

Invoice Sample-
CITRUS SUPPLY CO. INVOICE
SOLD 1467 CLAY STREET
TO: PETERSBURG, WISCONSIN Burroughs B
44444

DITRUS SUPPLY CO.

SHIP 1467 CLAY STREET
TO: PETERSBURG, WISCONSIN
44444
TERMS ORDER CUSTOMER NO. SOL SHIP DATE INVO
NO. D BY VIA ICE
NO.
2-10NET 30 P87654 102,912 7 OUR NOV. 15 12,34
TRUCK 7

CODE QUANTI DESCRIPTI PRICE UNIT GROSS DISCO NET

13414522 TY ON 2.80 EA 28.00 UNT 28.00
12415710 10 CUTTING TIP1.90 EA 19.00 .00 18.62
15611410 10 TT-3 1.50 PR 7.50 .38 7.35
12488806 5 1.00 EA 10.00 .15 10.00

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TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

10 SCREWDRI .00 63.97

VR 6” TAX 5.0% 3.20
WELDING HAN 25.00
92.17
GLOVE # DING
10
DSK

Incomplete rebilling is a third type of sales order system. The incomplete pre-billing system is very

similar to a separate order and billing system. The only difference is that an invoice is originally prepared

by the sales order department rather than a sales order. The invoice is completed to the extent possible, but

because actual quantities shipped and freight charges (if any) cannot be known with certainty until

shipment, the invoice is incomplete (i.e., only partially finished). This invoice is then distributed in the

same fashion as the sales order in a separate order and billing system--with copies to finished goods,

shipping, and billing--except that multiple copies of the invoice are sent to billing. When billing receives

notification of shipment, it pulls its copies of the invoice and completes them. In separate order and billing

prepares the original copy of the invoice when it receives notification to shipment.

Both separate order and billing and incomplete billing are post-billing systems. Incomplete billing is

commonly used in manual systems, as only one document (an invoice) rather than two documents (a sales

order and an invoice) must be prepared. This reduces transcription of information and thus is often more

efficient in a manual system. Note that the sales order is primarily an internal document. The invoice, on

the other hand, is the customer’s formal notification of the amount due for the shipment. Note also that the

terms invoice and bill can be used interchangeably. A bill of lading is an invoice for freight charges.

Separate order and billing might also be called separate order and invoicing.

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TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

Accounts Receivable System-

Accounts receivable represents the money owed by customers for merchandise sold or services rendered.

Because most business is done on credit, accounts receivable often represents the majority of an

organization’s working capital. Accounts receivable also maintains customer credit and payment history

information, which is useful in the overall administration of company credit policies. Conceptually, the

accounts receivable procedure is straightforward. A subsidiary ledger of individual accounts is

maintained, with a control account in the general ledger. Remittance advices are routed from the cash

receipts function; credit memos and other invoice adjustments are routed to the accounts receivable

department from the billing department. Debits and credits are posted to the individual accounts;

periodically, statements are prepared and sent to customers. Aging schedules are prepared as a by-product

of sending statements. Special credit reports may also be prepared.

There are also two basic approaches to an accounts receivable application: open- item and balance-

forward processing. In open-item processing, a separate record is maintained in the accounts receivable

system for each of the customer’s unpaid invoices. As customer remittances are received, they are

matched to the unpaid invoices. In balance-forward processing, a customer’s remittances are applied

against a customer’s total outstanding balance rather than against a customer’s individual invoices. Data

processing of accounts receivable can be tedious because of the volume of transactions and number of

accounts that may exist. A large insurance company or bank may have close to a million separate

accounts. Even with computer processing, mailing all statements at month’s end may be impossible. Many

businesses use a cycle billing plan, in which the accounts receivable file is subdivided by alphabet or the

working days of the month; for example, accounts A to H may be billed on the 10 th, I to P on the 20th, and

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TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

so on. These plans often have a beneficial effect on a company’s cash flow, because consumers generally

pay bills shortly after receiving them.

Ledger less bookkeeping may be used to streamline receivable procedures in certain situations an

important procedural question is whether copies of sales slips are to be included with monthly statement.

This practice is increasingly uncommon. Usually, individual transactions are itemized on the statement,

with supporting document references by either code or invoice number. A company is obligated to

produce supporting documents at the customer’s request; this demands careful attention to the details of

filing source documents. Owing to the preceding procedural aspects some companies sell their accounts

receivable at a discount to collection agencies. This process, called factoring, avoids record keeping costs.

This alternative should be considered by the analyst. But he or she must also carefully consider the

potential negative effects of factoring on customer relations.

OPERATION SHEET 1: Work within financial services industry guidelines,

Procedures and legislation
Purpose:

This learning outcome aims to provide trainees with the knowledge, skill and attitude of
.financial services industry guidelines, procedures and legislation. Understanding the
concept and apply practically.

Equipment, Tools and Materials:

 Computer
 Projector
 White board
 White board marker &Duster
 Lecture room
 Printer

Conditions:

7
TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
RIFT VALLEY UNIVERSITY
Training, Teaching and Learning Materials

Students and trainer’s are legally required to lock the health and safety of trainer. This
applies to all organizations and including voluntary organizations.

 Students must provide safe working environment.

 Students must not put themselves or others at risk

Procedure:

 Prepare guides
 Prepare legislations
 Prepare procedures
 Prepare list of abbreviations that we use in the accounting terms
Quality Criteria:

The trainee must be practice properly and organize microcomputer work environment
100% suitable for working health and safety.

8
TTLM Development Manual Date: October 28/2018
Compiled by: Acct department
RIFT VALLEY University Training, Teaching and Learning Materials

Self Check

5. Describe basic steps to follow when dealing with a customer’s

complaint?
6. Describe Procedures for handling customer complaints

TTLM Development Manual Date: october 28/2018

Compiled by Acct department