How to Handle Cash Sale COD and Account COD
Overview
In addition to normal cash and account sales. You may have customers that can only pay at point of placing the order and others that can pay when they pick up goods. We regard those as two forms of COD customers:
- Customer is Invoiced but pays in the form of cash, card or cheque. The transaction shows as history not as an open item.
You can set this up two ways:- Assign a Payment Term of COD onto the card and leave the customer tender blank. This allows you to sell to the customer and select the tender when completing the sale to Cash, Card or Cheque.
- Or assign a Payment tender of COD onto the card and a customer tender. Assigning a payment term of COD and assigning a specific customer tender to the card. When completing the sale, you will not get the choice of selecting a tender it will use the default tender on the card that has been assigned.
- Customer is invoiced and tendered to the customers account and an open item is generated awaiting payment. Once payment is received it is entered and allocated against the open item.
You can set this up two ways:- Assign a Payment Term of C.O.D. onto the card and leave the customer tender blank. This allows you to sell to the customer and select the tender when completing the sale to Cash, Card or Cheque or Account Sale.
If you select Cash, card or cheque you will not be generating an open item onto the account>
If you select Account, you will get the open item where by you can enter a payment later. - Or Assign a Payment tender of C.O.D. onto the card and a customer tender. Assigning a payment tender of C.O.D. and assigning a specific customer tender to the card eg 8 Account. When completing the sale, you will not get the choice of selecting a tender it will use the default tender on the card that has been assigned and write an open item.
- Assign a Payment Term of C.O.D. onto the card and leave the customer tender blank. This allows you to sell to the customer and select the tender when completing the sale to Cash, Card or Cheque or Account Sale.
| Customer tender | Payment Term on customer | Result | Comment |
|---|---|---|---|
| Blank | COD | You can't do account sales for this customer. The account tender is not filled in automatically and account tender does not show when you try to complete the sale. Description of the payment term prints at the top of the invoice. You can change that description to suit your business. | For COD payment term. Payment from is invoice and days is zero. Description of the payment term prints at the top of the invoice. You can change that description to suit your business. |
| 6 Account/or other tender | COD | Automatically posts based on the tender shown on the card. If that tender is account, the sale will always go on account. Description of the payment term prints at the top of the invoice. You can change that description to suit your business. | For COD payment term. Payment from is invoice and days is zero. Description of the payment term prints at the top of the invoice. You can change that description to suit your business. |
| Blank | C.O.D. | You can do account sales for this customer. The account tender is not filled in automatically and account tender does show when you try to complete the sale. Description of the payment term prints at the top of the invoice. You can change that description to suit your business. | For C.O.D. payment term. Payment from is invoice and days is one. Description of the payment term prints at the top of the invoice. You can change that description to suit your business. |
| 6 Account/or other tender | C.O.D. | Automatically posts based on the tender shown on the card. If that tender is account, the sale will always go on account. Description of the payment term prints at the top of the invoice. You can change that description to suit your business. | For C.O.D. payment term. Payment from is invoice and days is zero. Description of the payment term prints at the top of the invoice. You can change that description to suit your business. |
Procedure
Setting up of Payment Terms
Create a payment term for customers that must pay COD cash payment term - the invoice is generated with a tender of cash, card or cheque for the goods
Log onto Readysell>Administration>Paymentterms
C.O.D. Account payment term - the invoice is generated against the customers account. The customer is yet to pay for the goods.
Log onto Readysell>Administration>Paymentterms
Assigning Payment Terms to the Card
For all customers that you wish to Invoice assign the payment term of C.O.D. to the card.
For all customers that pay at the time of placing the order assign the payment term of COD to the card.
Log onto Readysell>Relationships>Cards>Settings>Customer Settings
Find the customers and change the Paymentterms
Tracking Sales by Tender
If you wish to track account sales vs account cod sales. All you need to do is to set up a tender called eg 9 COD with settings as per the screen shot below.
Then assign this tender to each of the Cards that have a paymentterm of C.O.D.
When you Complete the sale the system will automatically tender it to this tender.
If you should leave the tender blank on the card, you will have the choice to select it at time of tendering the sale.
