Cash on Delivery 

Use

Cash on delivery (C.O.D) is a means of payment used by mail-order firms such as the Post Office to collect payment from the customer. To do this, the external mail-order firm delivers goods with an invoice to its customers and forwards the collected money to you after deducting the C.O.D charge for the cash-on-delivery service. This lets you specify an amount for payment of the goods that your customer pays on receipt of the shipment.

SAP CRM Web Channel also gives you this payment option because, in Internet sales, cash on delivery is a preferred means of payment for security reasons.

Other means of payment include:

●      By invoice

●      By payment card

For comprehensive information about using payment cards, see Payment Card Processing.

Prerequisites

●      You have created the mail-order firm as a business partner and have flagged this business partner in the Payer role as cash-on-delivery partner. You also need to configure the hidden field COD Customer (context node BUILMARKETING) for the CRM WebClient UI.  The field is available as a hidden field at header level (component BP_HEAD) in Account Management and must be activated using configuration in the relevant views.

●      In the transaction type in use, you have assigned the value Payment Card/Cash on Delivery in the field Payment Plan Type in the Customizing Header in the group box Payment Data . Otherwise, the assignment block Payment Method is not available to you in the sales order. You make the settings in Customizing at Customer Relationship Management → Transactions → Basic Settings → Define Transaction Types.

Features

When you have entered a cash-on-delivery partner as payer in the sales order, the system automatically proposes cash on delivery as the payment method.

You get an error message in the sales order when cash on delivery is available as a payment method but no cash-on-delivery partner has been entered. Double-clicking on the error message Method of payment not suitable for this payer takes you automatically to partner processing. If you have not entered a business partner as cash-on-delivery partner, you must create a business partner manually and flag this as the cash-on-delivery partner. Then you must enter this business partner as the payer in the sales contract.

To do this, the following Business Add-Ins (BAdIs) are available:

●      BAdI COM_PARTNER_BADI

You use this BAdI in SAP CRM Web Channel to propose a cash-on-delivery partner automatically for new customers to whom you cannot assign a cash-on-delivery partner beforehand. For BAdI definition COM_PARTNER_BADI, BAdI implementation CRM_COD_PAYER_SET lets you modify your requirements. To find this BAdI, see Customizing at Basic Functions → Partner Processing → Business Add-In for Partner.

●      BAdI CRM_RISK_MGMT_BADI

Us this BAdI to exclude methods of payment and propose permitted methods of payment.

The following options are available:

○       Exclude methods of payment

If you do not want to offer your customers invoice as a method of payment, for example in SAP CRM Web Channel for security reasons, you can exclude it.

○       Propose methods of payment

In SAP CRM Web Channel for example, you can automatically propose cash on delivery to your customers as the method of payment.

In SAP CRM Web Channel, invoice is the default proposed payment method. Make your settings in Customizing at Customer Relationship Management → Transactions → Settings for Sales Transactions → Business Add-Ins → BAdI: Payment Form on Internet.

In an SAP Customer Relationship Management (SAP CRM) and SAP ERP Central Component (SAP ECC) scenario, the sales order is transferred from SAP CRM to SAP ECC.

For more information about cash-on-delivery processing in SAP ECC, see the SAP Library for SAP ECC under SAP ERP Central Component → Logistics → Sales and Distribution (SD) → Billing (SD-BIL) → Billing → Cash on Delivery.

Activities

●      When you create the sales order, enter the mail-order firm as the payer in the Parties Involved assignment block. When the conditions outlined in the prerequisites section have been fulfilled, the system automatically proposes the payment method Cash on Delivery and the value Cash on Delivery is entered in the field Payment Method in the assignment block Payment Method

Restrictions

●      You cannot use different methods of payment in one sales order.

●      A carrier is determined only in SAP ECC.