What is Freight Invoice Auditing?

A freight invoice audit is a review of a shipping company's invoice to ensure that it accurately reflects the services provided and accessorial charges levied. This is important because the invoice serves as a legal document that outlines the terms of the shipping agreement and can be used in case of carrier disputes. 

Truckload and less-than-truckload shipments, also known as LTL shipments, are two common types of shipping that involve transporting goods by truck. In a truckload shipment, a truck carries goods that fill its entire capacity, while in an LTL shipment, a truck carries goods from multiple customers, each with a smaller quantity of goods. 

Both truckload and LTL shipments need to be audited for a few reasons. First, the invoicing process for these shipments can be complex, with multiple charges and fuel surcharge, and accessorial fees that need to be accounted for. An invoice audit ensures that the charges on the invoice are accurate and fair and are reconciled with what the actual contract states the charges should be. 

Second, the shipping industry is regulated by various organizations and agencies, such as the Federal Motor Carrier Safety Administration (FMCSA) and the Department of Transportation (DOT). These agencies have strict rules and guidelines that must be followed, and an invoice audit helps to ensure compliance with these regulations. 

Third, auditing freight invoices can help to identify errors or discrepancies that may result in overcharging. For example, if a shipment is misclassified, or if there are discrepancies in the weight or dimensions of the goods, the customer may be charged more than they should be. An invoice audit can help to identify and correct these errors, leading to cost savings for the customer. 

In conclusion, freight invoice audits are important for ensuring that truckload and LTL shipments are accurately invoiced and comply with industry regulations. These audits can help to identify errors and discrepancies, leading to cost savings for the customer. 

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