How to Record a Cash on Delivery (COD) Order via Aramex or DHL
Setting up the courier receivable when a COD parcel is dispatched — common in Middle East e-commerce.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Receivable: Courier (COD) | Asset (+) | 150.00 | - |
| Sales Revenue | Revenue (+) | - | 150.00 |
💡 Accountant's Note
In the Middle East, COD is huge. When the courier picks up the cash, you don't have it yet, so you move the balance from the customer to the courier's receivable account.
Practitioner & Systems Framework
💻 ERP Architecture
Integrate your OMS/e-commerce platform with the ERP so that each COD order dispatched automatically creates a Receivable: Courier entry. Maintain one receivable account per courier (Aramex, DHL, local carriers) to simplify weekly reconciliation against courier settlement statements. COD receivables typically age 7–14 days before settlement — flag anything exceeding 21 days for follow-up.
⚠️ Audit Flags
Auditors examine the COD receivable aging schedule closely: (1) Unmatched courier receivables (dispatched but no settlement received) may indicate failed/returned deliveries not reversed, (2) Long-outstanding COD balances should be supported by courier tracking proof of delivery, (3) High COD return rates in MENA markets (30–50% is common) mean the return reversal entries must be tested for completeness.
📄 Required Documentation
Courier dispatch manifest (order IDs, amounts, dispatch dates), courier settlement statement (collections remitted by batch), receivable aging report reconciled to courier reports, and return/rejection log for undelivered COD 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.