Modules»Accounts Receivable»C.O.D.
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Last modified on 12/23/2015 3:01 PM by User.



There are two basic type of C.O.D sales and deliveries. They are:

1. A delivery driver, salesman, or service technician (internal staff) delivers merchandise or provides service to a customer and picks up payment.

For deliveries done by internal staff, you can keep track of orders delivered but have not been paid. When the staff person brings in the money it can then be applied against the open order. In order to set up a COD customer so it can be handled in this manner:

  • Order Processing / System Management (Task 32)
    • Modify Parameter Files (Subtask 22)
      • O/E General (Selection 1)
        • set COD'CHG'FLAG=Y
  • Accounts Receivable / Customer Master File (Task 17)
    • Customer Master File (Task 17)
      • Line 24 (Credit Limit)
        • Set the customer credit limit to zero
        • Line 39 (Bill Terms)
          • Set the customer bill terms to C.O.D


2. A third party representative (i.e. UPS) is to pickup payment, on your behalf, and forward the payment to you.

For COD sales/deliveries that are delivered by an outside delivery company can be tracked by using an alternate bill-to customer. This allows for the order to be invoiced as normal, but have another customer be responsible for the payment.Follow these steps:

Set up a "type" to be $ , Bill to:

  • Accounts Receivable / System Management (Task 32)
    • Modify Application Tables (Sub-task 17)
      • Customer Type Definitions (Selection 3) 

Add the delivery company as a customer (example: UPS) with a "$" Cust Type:

  • Accounts Receivable / Customer Master File (Task 17)
    • Customer Master File (Task 17)
      • Line 12 (Cust Type)

When placing an order that is a C.O.D. in order processing, enter the customer number of the alternate bill-to customer and the amount billed on lines 16 and 17 on the 3rd screen (collection).

The check from the delivery company will be entered through the normal means (Accounts Receivable/Cash Entry and Editing) and applied against the delivery company (alternate bill-to) customer number

Doing these steps will allow you to have control over the receipt of COD sales/deliveries and give you a "Customer" under which to track COD sales/deliveries. This will ensure the delivery company is held responsible for the payment of the money since they have to receive payment before making the delivery.


When an alternate bill-to customer number is entered on the Collection screen of an order and the order is invoiced:

  • The invoice will post as normal.
  • The original customers account will have a credit memo applied to the account and the alternate bill-to customer will have a debit memo entered in the account.
  • When the payment is received from the delivery company, enter the cash receipt as normal, but use the delivery company alt bill-to customer number to record the payment.
  • Sales will be reported under the ship-to customer.

These two methods operate independently of each other, so both methods can be employed to manage your business.