What is COD Reconciliation?
An eCommerce specialist has quoted “ Without a proper system for COD reconciliation, your business could be on the cusp of suffering an economic heart attack.” COD reconciliation refers to the process of balancing out one’s billing books to account for all COD orders. When a COD order is processed and carried out, the money for it is collected by the carrier. Upon the completion of several cash on delivery orders, multiple collected payments are made to your business, hence declaring the orders closed.
What are the Benefits of COD Reconciliation?
There are many benefits of COD Reconciliation in delivery management.
- Manage the Cash Flow Cycle: You should be aware of exactly which of your COD orders have been fulfilled and about the remittances as well. You should know exactly how many orders have been partially or fully remitted or unremitted.
- Analyze the Cash Flow Data that has been submitted by the Delivery Personnel: You can analyze and determine which carrier is performing the best based on their remittance cycles. This enables you to understand which carriers are blocking up the cash flow and the reasons behind any potential non-remittances.
- Ability to have a Detailed Database: Companies can now maintain, manage and store logs of data in the form of unified files. If any customer complaints or discrepancies arise at any stage, you can pull up the information you require on carrier remittances and specific orders with ease. This increases customer experience and enhances your ability to operate efficiently.
These advantages enable you to stay aware of your business finances completely.
How Does COD Reconciliation Work in Shipox?
To view how much COD is pending with each driver and to collect it from them.
Step 1 – Go to the Finance orders page in the admin backend
Step 2 – You can see all the ﬁnance information
- To be collected – Orders yet to be delivered
- Collected – Orders delivered and cash with driver
- With Cashier – The cash collected from the driver and with the cashier
- With bank – Cash updated as “with bank” by the cashier after he had deposited the cash to the bank
Step 3 – To check the cash pending from a specific driver, go to “collected” tab and filter the page with that specific driver’s name.
Step 4 – Once the pending cash is received from the driver, select all the orders and “batch COD status update” as With Cashier
Hence, your route optimization software or your logistics management software should be one that has a COD reconciliation option as well. This will give your business the ability to offer the customers the option to pay in cash, which is known to increase customer experience and satisfaction rate positively. A business equipped with a holistic delivery management solution is bound to succeed in the immediate future.
Shipox is a data-driven Delivery Management Software that enables its users across a multitude of diverse industries to avail market competitive features and customer support in order to automate and perfect their delivery process. Shipox users are able to increase the efficiency of their delivery process, optimize their costs effectively, and enhance their customer experiences. it can also help to increase the rate of FDDS. To learn more, you can sign up for a quick demo here.