COD Billing with revised commission charges - Accounting procedure SOP

SOP FOR COD BILLING WITH REVISED COMMISSION CHARGES

Standard Operating Procedure for Accounting of Revised COD Commission charges and Billing.

NEW PROCESS FOR CHARGING COD FEES AND TAXES:

A. Changes with COD Delivery accounting:

• With COD Article Delivered, entire amount collected shall be paid to the Biller i.e., DR liability document posted for each articles shall have no deduction.
• The process for deducting COD commission & taxes from COD value collected at the article level is done away with.
• Ref liability Document: Gross Amount realized G/L shall be as per respective Product 

• No changes in respect to daily account and TCB there at Delivery Post Office.

B. Process for COD Commission/Fees Billing and collection from Biller:

• System shall generate Monthly invoice for COD commission against each Biller contract and Booking Office, which includes all COD articles Delivered on Previous month against the contract Booking Office.
• Below are the new commission structure for COD payment,

An RV document with consolidated commission and applicable GST shall be posted as liability (Account receivable) against Biller ID accrued at article booking Office Profit center.

• Separate Transactions shall be provided under DPMS Transaction and Reports to print COD Commission Invoice. With this provision, Bill can be raised separately for advance customers and for BNPL customers where there are no Bookings for any Month.
• Details viz count of COD Articles delivered, commission and GST shall also be part of BNPL/Advance customer monthly invoices raised against booked articles.
• For BNPL Customers: Bill amount against Bookings and COD commission to be paid and can be processed via F-28/
• For advance customers: Amount payable towards COD Commission shall not be deducted/adjusted from Booking advance hence separate payment towards COD Commission to be collected and posted via F-28.
• After F-28 Postings and clearing of COD Commission liability, revenue towards COD commission shall be reflected in respective F&A reports against Office of Payment collection.

New Smart form at the time of billing (with COD Quantity and COD Charges)