What is Cash on delivery?
Cash on delivery is payment collected by the courier when the parcel is handed over, and remitted to the seller later in a settlement. The sale and the money arrive at different times.
Cash on delivery is payment collected by the courier when the parcel is handed over, and remitted to the seller later in a settlement. The sale and the money arrive at different times.
In Bangladesh
COD dominates online retail here, which means an order is not revenue until the courier settles, returns are common, and the gap between the two is where most online sellers lose track of their cash.
An example
A seller ships 300 parcels worth BDT 4.5 lakh in a week. Around 40 come back and the courier settles the rest a week later, minus charges. The revenue for that week is not BDT 4.5 lakh and never was.
In SORS ERP
SORS ERP reconciles courier payments against shipments, including statement upload for couriers without an API, so COD collected, COD pending and returns are visible per courier.
Also called
- In Bangla
- ক্যাশ অন ডেলিভারি
- Also
- COD
Questions
Answered plainly, including where the answer is no.
When should a cash on delivery order be recorded as revenue?
That is an accounting policy question for your accountant, and it turns on when the sale is complete. What is not in doubt is that a booked parcel is not collected cash, and the two need to be visible separately.
See SORS ERP running on your own numbers
A 30-minute demo in Bangla or English, with your products, your VAT setup and your questions.