Both shippers and carriers can use the Freight Payment module inthe IBM? SterlingTransportation Management System (Sterling TMS). Carrierscan use Freight Payment to manage the transportation invoices forthe shipments they deliver:

1. Carriers can submit freight invoices to Sterling TMS which providea summary of the billed charges.
2. Sterling TMS cangenerate freight payment vouchers. Depending on how the shipper configuredthe Freight Payment module the voucher includes the following charges:
   • If the shipper uses the Auto-Pay process in Sterling TMS the voucherrepresents the freight charges that are calculated by the system.These charges are based on your shipper and carrier contracts. Thevoucher includes the linehaul rate and any planned accessorials thatapply to the shipment.
   • If the shipper uses the Match Pay process in Sterling TMS the systemcompares the carrier invoice charges to the freight charges that Sterling TMS calculated.If the carrier charges fall within the tolerances the shipper defined Sterling TMS submits thecarrier charges in the freight payment voucher.
3. The shipper can have Sterling TMS submit thefreight payment voucher charges to its organization in EDI or XMLformat. The shipper can import these voucher charges into its accountspayable system and use that system to pay your carrier invoices.

Carriers do not set up a Freight Payment configuration in Sterling TMS. Each shipperdefines its freight payment configuration which includes freightpayment rules and triggers:

• The shipper might require carriers to submit an invoice to Sterling TMS before thesystem generates the voucher.
• Theshipper defines freight payment triggers that determine when Sterling TMS generateseach voucher. For example your shipper might have Sterling TMS generate avoucher when you accept the shipment tender or when the shipment departsfrom the origin.
• The shipper can specify the number of days after the originalvoucher date that Sterling TMS locksthe shipment charges. After the lock date you cannot submit new orupdated shipment charges online in Sterling TMS.
• The shipper can set up Sterling TMS to alwaysuse the carrier PRO number as the carrier invoice number when generatinga freight payment voucher. If you provide LTL services to the shipperand you always use the PRO number as your invoice number you mightwant to take advantage of this feature. For more information contactyour shipper.
• The shipper can set up Sterling TMS to generatepartial payments. Sterling TMS automaticallygenerates a voucher for the linehaul planned accessorial and anyother approved charges when the freight payment triggers have beensatisfied. The shipper still has to reconcile and approve pendingcharges on the shipment.