Freight billing is complicated, with various aspects leading to unreported revenue leaks. Outsourcing is a costly alternative that, thanks to TMS-Digital’s -trustworthy freight auditing software, is no longer the sole option for properly managing it.
What is freight billing?
A freight bill contains specific information regarding the transportation of products, such as the shipper’s and receiver’s names and contact information, a complete description of the commodities, delivery due dates, and more.
It contains information on the contract written and agreed upon by both the shipper and the carrier.
What’s the purpose of freight billing?
The freight bill is an integral part of the transportation process.
It serves as a guide for the carrier, assisting them in understanding and upholding the shipper’s requirements.
The freight bill also serves as a legal document if the shipper fails to uphold the delivery terms, proving that the agreed-upon actions were not carried out as promised.
For instance, if a carrier only delivers three of the four boxes specified on the bill, the shipper may be able to use the agreement to get a partial or complete refund.
What are the details of a freight bill?
While the content on a freight bill differs from company to company, certain details are always included. The specifics contain the shipper’s and receiver’s names, contact information, and descriptions of the shipped products. The number and type of products are included in the report of the goods shipped. The carrier must know what it is transporting, and federal, state and local rules limit what can and cannot be sent.
Is a signature required for a freight bill?
Because a freight bill is a contract, the shipper can sign it to indicate that he agrees with the information on it. The carrier will double-check that the products carried on her truck match the freight bill, then sign it to acknowledge that she is responsible for delivering the specified quantities safely. The recipient will sign the freight bill as proof that he received the exact amount and kind of content. The freight bill can be used as proof to verify invoicing if one of the parties later argues about what was sent.
What is a typical freight billing process?
Each firm has its freight billing system, but the following essential phases should be included in every process.
- The contract is signed by both the shipper and the carrier.
- When the items are delivered, the carrier sends the shipper an invoice.
- The invoice is then double-checked to ensure it hasn’t been paid before.
- For analysis, data from the invoice is saved.
- For verification, the payment amount is compared to the services.
- For accounting purposes, a ledger code is added.
- The invoice is paid and filed away for future reference.