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 Accounts Payable 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 Entry or Check Printing to record the COD payment, do not record the check amount at the Less COD Amount field. Instead, record the payment at 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: In the Purchase Order Options window, enter the bank code at the Default Bank Code for COD Payments field. The default bank code can be changed during data entry.

2 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.

3 Record the receipt information in the Receipt of Goods Entry and/or Receipt of Invoice Entry window. On the Receipt of Goods Entry Totals and/or Receipt of Invoice Entry tab, enter the invoice number in order to record the COD payment. Enter the appropriate information in the COD Number, Less COD Amount, and COD Check No. fields. You can also change the default bank code specified in the Purchase Order Options window. The COD information can be entered in Receipt of Goods Entry only if an invoice number has been specified on the Header tab.

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 minus 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.