Freight invoice is a bill sent to the customer along with the shipment which contains the complete information about the freight, shipper’s name, name of the place from where shipment comes, shipment’s load and the detailed information of the charges.Read More
According to the FMCSA the freight invoice must contain the following details.
- Consignor or consignee’s name
- Date of dispatch
- Shipment origin address and final destination address
- Number of boxes or packages
- Complete freight description
- Freight’s weight or volume (in case of liquid or gas)
- Correct rate of the freight charges
- Total dues at the time of delivery
- Details of all the carriers involved in the process
At the time of remittance customers receive the original copy of the invoice as well as the carrier keeps the copy of it. Sometimes the invoice is sent via electronically, in that case the carriers have to provide a receipt of the payment to the customer.
How to utilize the freight invoice in your favour ?
A manufacturing company handles a lot of invoices on a daily basis. Sometimes the accounting for transportation matches exactly with everything you contracted for, including the quotes, freight weight as well as the quantities. This is the best scenario but in a few cases you have to file claims for wrong charges, freight weight and quantity. To eliminate these situations or minimize them, you have to take full advantage of the freight invoice.
1. Carefully auditing your freight and it’s payments
Freight expenses are rising everyday and it is a big issue for the manufacturers, retailers, distributors and the shippers. Therefore it becomes very crucial to match your freight invoice with the quote you received at the shipment time. Freight expenses are directly related to the fuel cost and the rising cost of fuel increases the transportation costs. Therefore, saving every single penny becomes very important and to do so you have to avoid any human error involved in the freight invoice generation. Proper auditing of the invoice ensures that you don’t end up paying extra for any shipment.
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There are many benefits of the freight invoice auditing. You can request an electronic copy of your freight invoice and verify it at the time of receiving your shipment. You can verify all the details of the shipment to eliminate any duplicate payment or extra mileage charges by the fleet operators.
You can also use the freight payment solutions provided by the third party logistics companies. Now in this freight payment service, the third party logistics companies receive all the invoices and audit them for you by entering the information or bills into their system and match it with the shipments.
All your trucking company accounting send their invoices directly to the third party logistics company and then the company audits the invoices with molecular level details and hence eliminates the chances of any mistake or wrongful payment claims.
Some manufacturers or distributors also prefer the post audit freight payment system in place of the freight payment solutions. They prefer to verify the invoices by themselves but use a post audit service to cross check for any mistakes. This method is not foolproof as there are still chances of errors and post audits may not be able to catch all the errors.
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2. Use a third party logistics provider to consolidate your freight invoices
Manufacturing or distributing companies has to deal with many invoices per week. There are so many payouts to the multiple vendors and it can be very difficult to keep everything in order. There is a great chance of human error in the process. Therefore invoice consolidation is crucial for accuracy and you can avoid human error while doing so. There are trucking payroll software providers that can consolidate your hundreds of invoices in one and make your life so easy. Your accounting department will be so grateful for all this.
You can get rid of too much paperwork as the freight invoice consolidation provides you an electronic invoice in place of hundreds of invoices. You will be safeguarded against any frauds or financial dangers. Invoice consolidation will save you time and effort. You will also enjoy a 24/7 availability of your weekly consolidated invoice.
3. Collected data from freight analysis help you make better decisions
By carefully analysing your freight invoices, documents and other informative records, you will end up collecting a huge amount of data that will provide you clear insight of the business. This data will help the managers make timely and better decisions to help the company save a good amount of money.
By going through the previous data you can clearly see where your money is going and where you can save by changing the standard carriers. Without the proper analysis of the invoices you may end up using the same carriers over and over while there are better options available at a better price.
If you look at this way, your freight invoice is not a headache but an opportunity to gain some valuable information and utilize it effectively to save a lot of money and time for your company. As the saying goes that every single dollar saved is dollar earned and this is true in this case. A thorough auditing, consolidating and analysing your invoice can be a huge asset for the growth of your company.