E-commerce

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 NameTypeDebit ($)Credit ($)
Cash in BankAsset (+)1,425.00-
Courier Delivery Fee ExpenseExpense (+)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.

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