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Freight Billing and Auditing Checklist
Freight Bill Preparation
Ensure all necessary shipment information is collected and accurate, including origin, destination, and consignee details.
Review and validate the classification and description of goods to ensure correct tariff application.
Calculate and verify freight charges based on the agreed terms of carriage and tariff rates.
Documentation Review
Confirm that all required documents (e.g., Bill of Lading, Commercial Invoice, Packing List) are complete and accompany the freight bill.
Check for special instructions or notes on the Bill of Lading that may affect billing.
Ensure that any pre-paid or collect charges are clearly indicated on the freight bill.
Billing Accuracy and Auditing
Perform a line-by-line audit comparing the freight bill to the carrier's tariff or contracted rates.
Validate any additional charges such as fuel surcharges, accessorial fees, and detention charges.
Cross-reference shipment weight, dimensions, and classification against the carrier's invoice to prevent overbilling.
Dispute Resolution and Adjustments
Identify discrepancies or overcharges and file disputes with carriers in a timely manner.
Keep a detailed record of all correspondences and adjustments made for each shipment.
Review carrier responses and ensure that credited amounts are accurately reflected in the accounting system.
Record Keeping and Reporting
Maintain organized records of all freight bills, audits, payment receipts, and adjustment documents.
Develop and distribute regular reports summarizing freight costs, savings from audits, and recovery efforts.
Utilize freight auditing software or services for larger volume shippers to streamline the process.
Payment Processing
Ensure timely payment of freight invoices to avoid late fees and maintain good carrier relationships.
Set up payment approval processes that include checks for auditing completion and accuracy.
Reconcile payments with bank statements to ensure that all freight charges have been accounted for and paid appropriately.
