DSD Route Accounting Software and Direct Store Delivery Systems

What is route accounting software?

Route accounting software is the system a distributor uses when the driver does more than deliver. It prices the order against the customer's agreement, prints or emails the invoice at the stop, collects payment, tracks the stock on the van and reconciles all of it at the end of the day, then posts the results to the ERP.

If money changes hands at the stop, or the quantity is decided there, you need route accounting rather than plain route management software. The difference is set out in full in our guide to choosing route accounting software.

How DSD route accounting works, from van to ERP

Direct store delivery (DSD) means the supplier or distributor takes product straight to the store shelf instead of routing it through the retailer's warehouse. The DSD business model trades higher delivery cost for control of the shelf, fresher product and first-hand sales data. DSD route accounting is the paperwork of that model, done on a handheld:

1. Load-out. The van is loaded against a load sheet and becomes a stock location in its own right. See van inventory management.
2. At the stop. The driver sells or delivers, applies the customer's price list and any live promotion, takes back returns and empties, and issues a tax-correct invoice — usually offline. See mobile invoicing on delivery routes.
3. Payment. Cash, check, card or account. Every collection has to be traceable to an invoice. See cash handling in route businesses.
4. Check-in and settlement. What was loaded, minus what was sold, plus what came back, must equal what is on the van; what was invoiced must equal what was collected plus what went on account. See driver settlement.
5. Posting. Invoices, payments and stock movements flow to the ERP, and price and customer changes flow back. See route accounting and ERP integration.

A route accounting system earns its keep on the days that step 4 does not balance, not on the days it does.

Mobile direct store delivery: invoicing and settlement on the route

Mobile DSD puts the finance system in the driver's hand. That changes what matters in the software:

• Offline first. Stockrooms and basements have no signal; pricing, invoicing and payment must work without it and sync later.
• Customer-specific pricing. Contract prices, volume breaks and promotions have to resolve correctly on the device, with limits on what a driver may override. See pricing and promotions in route sales.
• Returns and empties. Crates, kegs, pallets and deposits move back up the route and must not corrupt stock. See returns, empties and reverse logistics.
• Sales model. Presell, sell-from-truck and hybrids each put different demands on the handheld. See presell vs sell-from-truck.

Route accounting software for distributors: what to check

Whether you distribute beverages, snacks, bakery, dairy, propane or linen, put these to every vendor before a demo:

The sector write-ups go further: beverage distribution, bottled water and coffee service, propane delivery, vending and linen and uniform rental.

DSD and route sales ERP integration

Most distributors already run an ERP or accounting package — Sage 100, Microsoft Dynamics, NetSuite or something built in-house. The route accounting system does not replace it; it handles the mobile edge and posts the results back. The questions that decide whether the pairing works are the same whichever ERP you run: which system owns prices and customers, how often data syncs, and what happens to a stop invoiced offline after the price list changed. They are worked through in integrating route accounting with your ERP.