In the fast-paced world of e-commerce, timely Cash on Delivery (COD) remittances are crucial. However, exceptions arise, especially when dealing with bulk customers like Amazon or Shiprocket. These exceptions occur when COD payments are collected, but the remittance is delayed due to operational inconsistencies.
Here’s a quick look at the scenarios where COD remittances may be affected and the corresponding solutions based on a newly devised Standard Operating Procedure (SOP):
Common COD Remittance Issues:
- COD Payment Document Not Created: Articles booked and delivered as COD, but the payment liability document isn’t generated at the delivery office, resulting in non-reflection in the customer’s biller ID. The delivery confirmation is still available in the track & trace system.
- Incorrect COD Processing: Articles booked as COD but delivered as non-COD, with payment still collected. The booking and delivery confirmation data are available, but the process hasn’t been handled as a COD.
- Lack of Data: Articles are booked as COD, delivered as non-COD, and payment collected, but crucial booking or delivery data are missing from the system.
- Non-COD Articles with Payment Collected: Non-COD articles where payment is mistakenly collected from the recipient, with or without booking and delivery data.
Standard Operating Procedure (SOP) for Resolving COD Issues
Scenario 1 & 2: When payment data is not reflected, follow these steps:
- Use the Zartdata T-code in SAP/CSI.
- Select the “DARPAN” option and enter the COD article number.
- Execute the command to generate a payment liability document.
- The document will automatically update in the COD customer’s biller ID.
Manual Document Posting (If Automation Fails):
- Create a manual document with the correct debit and credit GL codes.
- Enter the article ID and process payment to the customer’s account.
Scenario 3 & 4: For cases with missing or incorrect booking data, a similar manual posting process must be followed to ensure the correct remittance.
Key Considerations for Payment Processing
- Ensure daily system syncs (Daily Sync/High Sync) are completed to prevent double entries.
- Due diligence should be practiced at all times to avoid duplicate or excessive payments.
- Keep detailed records of all processed cases and share them with the Payment Office for cross-verification.
By following this SOP, delivery and payment offices can resolve COD remittance exceptions efficiently, ensuring bulk customers receive timely payments and minimizing disruptions in the delivery process.
This blog serves as a quick guide to maintaining smooth COD operations and handling exceptions without the usual headaches!
