How to Record a Weekly COD Settlement Payout from Aramex or DHL
Clearing the courier receivable and recognizing delivery fees when the courier remits collected COD cash.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Bank | Asset (+) | 1,425.00 | - |
| Courier Delivery Fee Expense | Expense (+) | 75.00 | - |
| Receivable: Courier (COD) | Asset (-) | - | 1,500.00 |
💡 Accountant's Note
The courier deducts their delivery fees before remitting. The receivable is cleared, cash is deposited, and the delivery cost is recognized. Never record only the net as revenue — it was already recognized at delivery.
Practitioner & Systems Framework
💻 ERP Architecture
Obtain the courier's weekly settlement statement showing order IDs collected, amounts remitted, and fees deducted. Match each order ID in the settlement to open Receivable: Courier entries in the ERP. Any orders in the ERP not on the settlement statement should be investigated — they may be returns or disputes. Automate the matching via the courier's API export if volume is high.
⚠️ Audit Flags
Unreconciled differences between the Receivable: Courier balance and the courier settlement statement indicate either: unrecorded returns, disputed amounts, or data entry errors. Auditors will request the reconciliation schedule and courier remittance advices. Courier fees should be verified against the signed rate card — overbilling by couriers is not uncommon.
📄 Required Documentation
Courier weekly settlement statement (order-level detail), bank deposit confirmation, courier rate card (contracted delivery fees), Receivable: Courier reconciliation (ERP balance vs. settlement statement), and log of any disputed or missing orders.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.