Process COD Payments

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The Purchase Order module is designed to record and process cash on delivery (COD) payments paid against purchase orders when goods have been received.

The COD payments are recorded directly against the cash account based on the bank code specified during data entry. The net invoice amount is posted to the Accounts Payable module, and the COD check information is recorded in the Accounts Payable and Bank Reconciliation files.

Unlike the processing of deposits, COD payments do not need to be recorded in Accounts Payable. It is assumed that the COD check was manually prepared and recorded in Purchase Order data entry tasks. If you use Accounts Payable Manual Check and Payment Entry or Check Printing to record the COD payment, do not record the check amount in the Less COD Amount field. Instead, record the payment in the Prepayment Applied field. This prevents the payment from being recorded twice.

To verify that COD payments are properly recorded and processed

  1. Establish the default bank code for COD Payments:

  1. Select Purchase Order Setup menu > Purchase Order Options.

  2. In the Default Bank Code for COD Payments field, enter the bank code. The default bank code can be changed during data entry.

  1. Manually prepare the COD check. When a COD shipment is received, pay the COD amount using the manually prepared check. Attach the COD payment information to the receipt document.

  2. Record the receipt information in Receipt of Goods Entry and/or Receipt of Invoice Entry, as follows.

  1. Select one of the following:

  2. Purchase Order Main menu > Receipt of Goods Entry

  3. Purchase Order Main menu > Receipt of Invoice Entry

  1. On the Header tab, enter the appropriate invoice number. For more information, see Receipt of Goods Entry - Fields or Receipt of Invoice Entry - Fields.

  2. On the Totals tab, enter the appropriate information in the COD Number, Less COD Amount, and COD Check No. fields. In Receipt of Goods Entry, the invoice number must be entered on the Header tab before entering COD information.

  3. Change the default bank code if needed.

  4. Click Accept.

When the invoice is updated to the Accounts Payable Open Invoice file after the Daily Receipt Registers are printed and updated, the invoice balance equals the invoice total less the COD amount. The COD payment information is also updated to the Accounts Payable Check History file.

General ledger postings from the Daily Receipt Registers update credit the COD amount to the cash account for the specified bank code and debit the inventory account.

If the Bank Reconciliation module is integrated with Purchase Order, the COD payment information is updated to the appropriate Bank Reconciliation files.