Separate order and payment status
Track placed, cancelled, dispatched, delivered, returned and collected statuses separately. A dispatched order is not proof of receipt of cash, and a cash-on-delivery collection may reach the bank in a later settlement.
Keep payment method and settlement batch against each order. Suggested record groups include order sales, returns, courier costs, payment fees, stock and unsettled collections. Final revenue recognition requires review of the business's actual terms.
| Event | Evidence | Control risk |
|---|---|---|
| Order cancelled before dispatch | Order status and approval | Cancelled order stays in sales |
| COD delivery | Delivery/collection report and order ID | Cash collected but settlement not matched |
| Customer return | Return authorisation and received stock | Refund processed without returned goods |
| Batch payout | Provider statement and order list | Fees hidden by recording net payout only |
Reconcile each settlement batch
Match eligible orders to collected amounts, returned-order deductions and fees. Retain a schedule for delivered orders not yet settled. Differences need an order-level explanation before they are written off.
Verify courier and provider rates from your own contract. Fees and settlement timing differ by arrangement; use the amounts and dates on the actual settlement statement rather than assuming a standard Sri Lankan COD rate.
Keep returned goods visible
A refund and a stock return are related but separate evidence points. Note whether the goods were received, resalable, damaged or missing. A refund confirmation alone does not prove inventory increased.
Bookkeeping support can organise settlements and open balances, but the store supplies fulfilment, stock and refund evidence. Agree which team member confirms each order status and who investigates an unmatched settlement before using the workflow.
Worked example
Bridge collections to a bank settlement
Fictional COD batch: LKR 160,000 collected, LKR 20,000 approved return deduction, LKR 8,000 courier/payment charges and LKR 5,000 prior-period settlement adjustment.
- Batch after returns and feesKeep both deductions visible.
- LKR 132,000.00
- Expected bank settlementAdd the supported prior-period amount.
- LKR 137,000.00
LKR 137,000 includes a LKR 5,000 item from another period. It is not a clean measure of this batch's sales.
Frequently asked questions
Is a dispatched COD order a cash receipt?
No. Dispatch, customer collection and bank settlement are different events. Record their dates and supporting references.
Can a refund automatically restore stock?
No. Confirm goods received and their condition before changing the stock record.
Sources and limits
Fictional settlement assumptions; no typical courier fee, delay, tax treatment or revenue-recognition conclusion is asserted.
- IFRS Foundation — IFRS 15 overview
Background on revenue recognition; examples here do not determine the accounting standard or treatment applicable to a particular business.
Accessed: 2026-10-08 - IFRS Foundation — IAS 2 overview
Background on inventory cost and expense recognition; local applicability and valuation choices require accounting review.
Accessed: 2026-10-08