Freight Billing and Auditing Checklist

Retrieve the signed Bill of Lading, rate confirmation, and Proof of Delivery from the TMS (McLeod, Aljex, AscendTMS) or load folder. Confirm shipper, consignee, pickup/delivery dates, pickup number, and PO match across all three documents. Mismatched consignee names are the most common reason an invoice gets kicked back in customer AP.

For LTL, confirm the NMFC item number and freight class on the BOL match the actual commodity. Density-based class shifts (e.g., class 70 vs. 85) are the highest-frequency reclass adjustment carriers issue. For truckload FAK rates, confirm the commodity falls within the tariff's exclusion list.

Compute linehaul from the customer contract or spot rate confirmation. Use practical miles (PC*Miler or Rand McNally) unless the contract specifies HHG or zip-to-zip. Document the mileage source — disputes over 20-50 mile differences are common and the carrier with the cited source wins.

The POD must show consignee signature, delivery date/time, and piece count. Flag any OS&D notation (overage, shortage, damage) — these drive cargo claims and may delay invoicing pending resolution. Unsigned PODs or PODs with 'subject to count' notations are the most common reason customer AP holds payment.

Look for inside delivery, liftgate, residential, appointment, sort-and-segregate, or hazmat notations. Each maps to an accessorial that must be invoiced — drivers commonly perform the service without flagging dispatch, leaving money on the table.

Confirm Section 7 of the BOL (non-recourse) is signed appropriately and that prepaid/collect/third-party-bill matches the rate confirmation. Billing the wrong party — especially on third-party bill-to consignees — triggers a rebill cycle that delays payment 30-60 days.

Line-by-line compare the carrier invoice to the rate confirmation or tariff. For LTL, recompute using the carrier's published tariff with negotiated discount and FAK. Watch for absolute minimum charges applied to small shipments — these override the discounted rate calculation.

FSC should match the contract's DOE diesel index for the pickup week. Truckload FSC is typically cents-per-mile on a sliding scale; LTL FSC is a percentage of linehaul. Carriers occasionally lag the index update by a week — recover the difference on long lanes.

If the carrier issued a W&I (weight and inspection) certificate, verify the certificate cites scale ticket numbers and an inspector ID. Reweighs without documentation are challengeable. For dimensional reweighs, request the cube-out measurement and PCF density calculation — generic 'reclassed to higher class' notes without numbers are routinely overturned.

Cross-check detention against ELD or driver time-stamps and the rate con's free-time terms (typically 2 hours at pickup, 2 at delivery for TL). Confirm liftgate, inside delivery, layover, and stop-pay accessorials are supported by BOL notation or driver app entry. Detention invoiced without arrival/departure timestamps is the single largest source of customer short-pays.

If the audit finds a variance over the carrier's tolerance (commonly $10 or 2%), flag for dispute before payment release. Variances inside tolerance pass straight through to AP.

Submit via the carrier's overcharge portal (OC&S, Old Dominion eClaims, XPO portal) within the contractual window — typically 180 days under Carmack, but many carrier rules tariffs shorten this to 90 or 60 days. Include the original invoice, signed BOL, rate confirmation, and recalculation worksheet.

Contact the consignee receiving manager directly and request a signed POD copy or driver-app delivery confirmation. Most customer AP departments require a clean POD within 14 days of invoice or will short-pay.

Carmack Amendment gives 9 months to file a written claim and 2 years (minimum) to file suit; most carrier rules tariffs require the claim within 9 months of delivery. Include OS&D exception report, photos, repair or replacement invoices, and salvage disposition. Track-and-trace screenshots from MacroPoint or project44 strengthen the claim.

Record the carrier's response (allowed, partial, denied), credit memo number, and adjustment amount. Post the credit to the original invoice in the accounting system — never as a standalone credit memo — so the lane-level cost reporting reflects the recovery.

Store the invoice, BOL, POD, rate con, audit worksheet, and any dispute correspondence in the TMS load folder. Retention is typically 3 years for non-hazmat and 3 years post-delivery for cargo claim documentation under 49 CFR 379.

Push audit results to the weekly dashboard: invoices reviewed, variance found, recovery dollars, carrier-by-carrier accuracy. Lanes with repeat overcharges should be flagged to the procurement team for the next bid cycle.

For shippers using third-party audit (Cass, AFS, nVision, Trax) or in-TMS audit modules, review the exception queue weekly. Auto-pass tolerances should be tuned quarterly — too tight floods the queue, too loose leaks recovery.

Only clean-audited invoices release to AP. Match the carrier's terms (Net 30, quick-pay 2/10, factored through Triumph or RTS) and ensure the remit-to in the accounting system matches the carrier's current NOA (notice of assignment) if factored — paying the carrier directly when a factor is on file creates a double-pay liability.

Apply contractually agreed quick-pay discounts (commonly 2% net 10 or 3% net 2) where the cash position supports it. For factored carriers, the discount is governed by the NOA, not the carrier's request.

Match ACH and check clears to invoice numbers. Investigate any cleared payment without a matched audited invoice — these are the trail of carriers paid before audit completion and are the most common source of unrecoverable overpayment.