Cash on delivery (COD),
Definition of Cash on delivery (COD):
The system of paying for goods when they are delivered.
Cash on delivery (COD) is a type of transaction in which the recipient makes payment for a good at the time of delivery. The terms and accepted forms of payment vary according to the payment provisions of a purchase agreement. Cash on delivery can also be referred to as collect on delivery since delivery may allow for cash, check, or electronic payment.
Payment method in which ordered goods are carried to the buyers place but are handed over only upon full payment. Also called collect on delivery.
A cash on delivery transaction can potentially take different forms and may affect a company’s accounting in different ways. Public companies are required to use the accrual accounting method under generally accepted accounting principles (GAAP). In accrual accounting, a company recognizes revenue at the time of the transaction and records the payment in accounts receivable if the payment is deferred. Private companies can use either accrual or cash accounting. In cash accounting, the company must wait to record the transaction as revenue until payment is received.
How to use Cash on delivery (COD) in a sentence?
- Buyers may have several payment options, including credit card, debit card, personal check, cashiers check, money order, cash on delivery and escrow services.
- COD shipping offers customers a time advantage for saving to make a full payment.
- Cash on delivery (COD) is a type of transaction in which the recipient makes payment for a good at the time of delivery.
- A COD transaction can take several different forms that affect a company’s accounting in different ways.
Meaning of Cash on delivery (COD) & Cash on delivery (COD) Definition