COD Settlement & Invoicing

Every Rupee of COD, Reconciled to the Consignment

COD settlement and invoicing software reconciles cash-on-delivery collections down to each individual consignment. iCargos totals delivered COD, nets off delivery charges, fuel, GST, taxes, cash handling and bank charges, and issues a consignment-level settlement invoice every merchant can open and verify line by line.

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The settlement lifecycle

From a delivered parcel to money in a merchant's account — every step is recorded, not estimated.

Delivery confirmed. Only delivered shipments' COD counts toward a settlement — collections are tied to proof of delivery, not to booking.

COD totalled. The system sums the COD collected across every delivered consignment for the merchant in the period.

Deductions netted off. Delivery charges, fuel surcharge, GST, sales & income tax, cash handling, bank charges, flyers and weight adjustments are subtracted — each traceable to its consignment.

Invoice issued. A settlement invoice is generated with a header, one line per consignment, a charges summary and payment history.

Payment recorded. Payments are logged against the invoice with cheque / transaction reference; the balance updates until it clears.

Anatomy of a settlement invoice

Deduction transparency is the whole point. A merchant can see exactly how a payout was reached — consignment by consignment.

One line per consignment

CN, consignee, city, date, service, weight, COD, delivery charges, fuel, GST, sales tax, income tax, net amount and status — for every parcel in the settlement.

A charges summary

Totals for each deduction type, plus weight adjustments and flyers, netted into the final payable — no black-box "handling fee".

Payment history

Every payment against the invoice, with reference and date, and a running balance until the invoice is fully cleared.

[ Screenshot: Itemised settlement sheet ]Real product capture of a consignment-level settlement invoice (merchant names anonymised) — awaiting capture from design.

Every deduction, itemised

The charges that come off a COD settlement, each configurable per account.

Component	Typical value
Delivery charges	tariff-based
Fuel surcharge	35% of charges
GST / sales tax	16%
Sales tax on COD	2%
Income tax on COD	2%
Cash handling fee	~1–1.5% of COD
Bank charges	Rs 85 flat

Every value is a per-account setting, so a merchant's invoice reflects their agreement — not a one-size default.

What the merchant sees

The merchant portal's "My Payments" screen is the same settlement data, from the seller's side.

Payment clearance list

Every settlement with payment ID, invoice date, total shipments and deliveries, COD amount, delivery charges, GST, flyers, total payable, payments and balance.

Drill into any settlement

Click a settlement to open the itemised sheet, or click the shipment / delivery counts to see the exact CN lists behind them.

Proven at volume

15,857 settlement invoices have been issued through the platform to date — this is a live, working workflow, not a concept.

[ Screenshot: Merchant "My Payments" ]Real product capture of the merchant Payment Clearance list — awaiting capture from design.

Payment recording & the Zero-COD wallet

For shipments with no cash to collect, a prepaid wallet keeps things moving.

Record & clear payments

Log payments against any settlement with a cheque or transaction reference; the invoice balance updates until it's fully paid.

Prepaid Zero-COD wallet

Top up a prepaid balance and book shipments that carry no COD. Each booking deducts the full net shipping charge, including fuel and GST.

Automatic refunds

Cancel an order or hit a failed carrier booking and the wallet is refunded automatically — no manual claw-back.

Frequently asked questions

What is COD settlement and reconciliation software?

It reconciles cash-on-delivery collections against what each merchant is owed. iCargos totals delivered COD, subtracts delivery charges, fuel, GST, taxes, cash handling and bank charges, and issues a settlement invoice itemised down to each individual consignment.

How is a merchant's COD settlement calculated?

Net Amount = the sum of each shipment's net, plus bank charges, sales and income tax and cash handling. Total Payable = COD collected minus that Net Amount, minus flyers, return fees and weight adjustments. The result is shown line by line, not as a single lump sum.

Can merchants see how their deductions were calculated?

Yes — that's the differentiator. The itemised settlement sheet shows every consignment with its COD, charges, fuel, GST, taxes and net amount, plus a charges summary and full payment history. Nothing is hidden behind an opaque "handling fee".

What deductions appear on a courier settlement invoice?

Delivery charges, a fuel surcharge (typically 35% of charges), GST (16%), sales and income tax on COD (2% each), a cash handling fee (~1–1.5%) and flat bank charges (Rs 85 where enabled). Each is a per-account setting, so invoices reflect the merchant's own agreement.

What is the Zero-COD wallet?

A prepaid balance for shipments that carry no cash to collect. You top it up, and each Zero-COD booking deducts the full net shipping charge including fuel and GST. Cancelled orders or failed carrier bookings are refunded to the wallet automatically.

See a real COD settlement, reconciled

Book a demo and we'll walk a settlement from delivered parcels to a consignment-level invoice — on your own numbers.