Cash on delivery settlement
Hold cash-on-delivery invoices until the courier reports the parcel, settle them from the cash collected, bill the real courier charge, review the rest.
What it is
When a courier delivers a parcel and collects the money from your customer, you don't have that cash yet — the courier does. Cash on delivery (COD) settlement follows each parcel until the courier reports it. When the parcel is delivered with exactly the amount booked, the app approves the invoice, records the receipt from the cash collected and puts the courier's real delivery charge on its bill — by itself. Anything different goes to a person in the approvals centre.
It works with couriers that collect the money, such as Steadfast (proven live), Pathao and RedX (tested against each provider's sandbox).
Who it is for
- Online sellers whose customers pay the courier at the door.
- Accountants who reconcile courier payouts.
- Teams that need refused and returned parcels caught, not guessed.
Before you start#
- Connect the courier and paste its webhook address and secret into the courier's merchant panel — see couriers and shipping.
- In Settings › Sales › Approvals › Cash-on-delivery parcels, choose whether to Hold the invoice until the courier reports the parcel (or approve it at issue as other invoices).
- Choose Delivered with the right amount: approve, record the payment and settle by itself, or Review every delivered parcel before it settles.
- Choose Close the invoice once the cash settles it in full, or leave it approved and paid.
- Choose Record the courier's delivery charge as a bill, settled from the cash collected, or record courier charges only at the payout.
Step by step#
- Book the COD parcel; its invoice shows in Sales › Invoices › Awaiting delivery.
- Let the courier's report arrive; matching parcels settle by themselves.
- Open Approvals › Delivered parcels (COD) for the parcels in review.
- Decide each one: approve as invoiced, accept what was collected, mark it returned, or keep it in review — with a reason.
- Open Integrations › the courier's page › Reconcile parcels to see every parcel: due, booked, collected, the courier's status, your price against the courier's charge, and where it stands.
- When the courier pays out, open Accounting › Courier remittances and paste the payout statement.
- Check the amount that should reach the bank, then choose Post a settlement.
How the amounts fit#
- An advance on the order, such as a delivery charge paid by mobile wallet, is held as a customer advance and applied when the invoice is made. The courier collects only what is left: total less advance.
- Revenue is still the full price.
- The cash the courier collects is owed to you by the courier (Courier / COD Clearing) until the courier pays you out.
- A parcel paid in full in advance settles with no receipt.
When a parcel settles by itself#
All of these must hold:
- The courier has confirmed the delivery.
- It collected exactly the amount booked with it.
- The invoice still asks that same amount.
For Steadfast, a rider's "delivered" is checked with Steadfast's own status before any money moves — when the Steadfast page or the review page opens, and every 15 minutes. Steadfast books whole units of currency, so an invoice due of 1,234.50 booked as 1,235 counts as the same amount.
Anything else goes to review: a different amount, partial delivery, an exchange, returned, cancelled, a hold or exception, an unknown amount, or a "delivered" scan on a parcel that had been returned.
The courier's delivery charge#
What the customer pays for delivery is your price and stays on the invoice. What the courier really charges becomes your cost: when the courier confirms the parcel, the parcel's one delivery bill is set to the courier's charge and approved — no second courier bill. It is paid from the cash the courier collected. A prepaid or returned parcel's bill stays owed and is paid when you post that courier's payout.
How it posts to the books#
- Invoice approved: Dr Accounts Receivable (and Unearned Revenue for the advance) / Cr Sales.
- Cash collected: Dr Courier / COD Clearing / Cr Accounts Receivable.
- Courier's charge: Dr Courier Charges (a distribution cost) / Cr Accounts Payable, paid from Courier / COD Clearing.
- Payout posted: Dr Bank / Cr Courier / COD Clearing.
- Accept what was collected: the shortfall is settled for less with a reason.
Questions#
What happens to a parcel the customer refused?
It goes to review. Marking it returned voids the invoice with its reason, and the goods are booked in from Sales › Shipping returns when they arrive.
Why is a delivered parcel still waiting?
The courier hasn't confirmed it yet, or reported a different amount. Approving a parcel the courier hasn't confirmed is refused with that reason.
Can I cancel the courier booking?
Yes, before delivery: Cancel courier booking on the delivery. The invoice's cash-on-delivery wait is released.
Does a courier that reports no amount get settled?
No. A delivered COD parcel with no collected amount goes to review, never to a guess.