Cash on Delivery (COD)

General

When delivering to consumers, partly due to mobile PIN devices, cash-on-delivery payments are making a full comeback. Using the 3PL TMS Cash on Delivery module, these payments and their handling can be well supported.

COD Contract

A cash on delivery contract allows you to clearly record the agreements you have made with your customer. Not only how cash on delivery is to be settled, but also which provision amounts can be calculated.

COD Process

Step 1 Define cash on delivery amount on order

At order intake, the cash on delivery amount to be collected is specified by the customer. This can be entered directly in the transport order or in the WMS Shipment.

Step 2 Cash on delivery

The customer pays via the mobile pin device. The amount received is recorded in the COD line in the TMS Order.

Step 3 Accounting for cash on delivery received

After status transition of the TMS Order, this amount can also be recognised on the financial balance sheet. On the status template of the type order the following functions have to be added:

• 11191111 - 3 (3PL Status Functions COD - Post General Journal Line for Cash on Delivery lines)
  
• 11191111 - 1 (3PL Status Functions COD - Create Revenue Lines from Provisions)

Step 4 Settlement of cash on delivery amounts received

Cash on delivery receipts can be settled with the customer via a negative sales invoice. This is done through the Create Cash on Delivery invoices process.

Step 5 Settle commission

The calculated provision can be transferred to a revenue line on the relevant TMS order via a status function:

• 11191111 - 2 (3PL Status Functions COD - Create Revenue Lines from Provisions)