COD Cash Control: Separate Shipment Events from Accounting Records
A control framework for COD: keep delivery truth in the TMS and post approved cash, receivable and settlement records to the administrative ERP.
COD is both an operational and a financial process. Treating one system as if it automatically owns both sides creates reconciliation errors. The TMS knows shipment assignment and delivery events; the ERP knows approved cash, receivables, payments and accounting entries.
Define the source of truth
- TMS: shipment ID, assigned courier, delivery or return status, timestamp and proof of delivery.
- ERP: customer or merchant account, invoice, receivable, approved cash hand-over, payment, settlement and journal.
ILORA belongs on the ERP side. It does not create or verify the shipment event.
Use a controlled hand-over
Every posting from operational data into finance needs a repeatable control: a unique external reference, an approved batch, an amount and currency, a posting date, a responsible role and a clear exception queue. That can begin as a reviewed file import and later become an API integration. Automation should follow a stable process, not hide an undefined one.
Daily reconciliation
Reconcile three totals: the TMS-approved delivered COD, the cash physically handed over, and the amount posted to the ledger. Differences must stay visible until investigated and approved; they should never disappear through a manual overwrite.
Merchant settlement
A settlement should be built only from approved records and an agreed fee schedule. The statement must show its period, opening balance, approved collections, agreed deductions, payments and closing balance. ILORA can manage the commercial and accounting records once they exist; it does not infer delivery status from a Sales Order.
Implementation sequence
- Map the existing COD process and owners.
- Choose sources of truth and identifiers.
- Run a reviewed import for one merchant or branch.
- Measure unmatched items and time to reconcile.
- Only then scope an API integration.
Book an ILORA administrative demo for receivables, payments, approvals and accounting. Review dispatch and tracking separately with your TMS vendor.