Question & Answer
Question
Match Pay Tolerance Settings
Answer
Match Pay Tolerance Settings
Use the Add Match Pay Tolerance page to define Match Paytolerances and thresholds. You also use this page to indicate whethera lane in your Match Pay system uses the Auto-Pay or Audit ChargesOutside Sterling TMS features.
Define the following settings for a Match Pay tolerance:
- New Effective Date
Select the effective date of the tolerance. Click the iconto quickly select a date. The default is the current date.
- New Expiration Date
Select the date that the tolerance definition expires. Thedefault is no expiration date (--/--/----).
- Origin
Select the origin for the tolerance lane.
- Destination
Select the destination for the tolerance lane.
- Payee
Click Edit Payee to define the payeesfor the tolerance definition. The Edit Payor/Payee Page opens.
- Mode
Select the transportation mode for the tolerance definitionsuch as Truckload or LTL.
- Service Type
Select the Service Type associated with the tolerance suchas Single Team or All forthe Truckload mode. The Service Type specifies how quickly a shipmenthas to be delivered.
- Movement Type
Select the type of movement for the tolerance such as Outbound Inboundor Interplant.
- Equipment
Click Add and select the type of equipmentsupported for the tolerance definition.
To apply the toleranceto all types of equipment select *ALL.
- Use Match Pay
Select this option to use Match Pay.
If you select UseMatch Pay you can set up Thresholds and Tolerances. SterlingTMS compares the rated shipment charges to the carrier invoice charges:
- If the difference between the rated charges and the carrier invoicecharges is within the defined tolerances Sterling TMS uses the carrierinvoice charge to automatically generate the voucher.
- If the difference is greater than or less than the defined tolerancesthe shipper must manually review and reconcile charges.
- Audit Charges Outside TMS
Select this option to automaticallyapprove any manual shipment charges or unplanned accessorials. Bydefault Sterling TMS doesnot automatically approve any manual charges or unplanned accessorials.
Sterling TMS sends approvedcharges to the shipper as an EDI 210 transaction. Shippers can importthe EDI invoicing data into their accounts payable system.
- Use Auto-Pay
Selectthis option to use the standard Auto-Pay feature for a lane in SterlingTMS rather than Match Pay. The Threshold and Tolerance fields aredisabled.
If you select Use Auto-Pay Sterling TMS calculatesshipment charges and automatically generates a voucher when the freightpayment triggers are satisfied for each shipment. Sterling TMS does not comparethe Sterling TMS vouchercharges to the carrier invoice charges.
- Threshold
Enter a Minimum and Maximum threshold amount and select theCurrency if you selected the Use Match Pay option.
Enterthe thresholds as flat amounts.
For example:
- You set the Minimum Threshold to $50 andthe Maximum Threshold to $100.
- Sterling TMS automaticallypays any carrier invoice that is up to $50 less or up to $100 morethan the voucher charges calculated by the system.
- Tolerance
Enter a Minimum and Maximum percentage in the Tolerance fieldsif you selected the Use Match Pay option.
The MinimumTolerance represents the lowest amount Sterling TMS automaticallypays for the invoice. For example:
- You set 10 percent as the minimum tolerance.
- Sterling TMS automaticallypays any carrier invoice that is up to 10 percent less than the vouchercharges calculated by the system.
The Maximum Tolerance represents thehighest amount Sterling TMS automaticallypays. For example:
- You set 5 percent as the maximum tolerance.
- Sterling TMS automaticallypays any carrier invoice that is up to 5 percent more than the vouchercharges calculated by the system.
- Consider Unrecognized Charge Codes
Specify whether Sterling TMS allows carriersto submit charges when the charge and allowance code is not definedin the contract.
Select one of the following options:
- Yes
- The carrier can submit charges with any charge and allowance code.If the charge does not match a code defined in the contract Sterling TMS locks thefreight payment voucher. You can use the Reconcile Charges page toaccept the charge and enter the correct amount.
- No
- Sterling TMS ignoresany charges that a carrier submits when the charge and allowancecode is not defined in the contract. This is the default setting.
Notes:- Setting Consider Unrecognized Charge Codes to Yes isonly supported when you define a Match Pay rule.
- If you set Consider Unrecognized Charge Codes to Yes Sterling TMS does not sendthe Charge Not Recognized alert to the shipper or carrier when thecarrier submits an unrecognized charge.
When you finish defining the tolerance click Save.
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Document Information
Modified date:
08 December 2018
UID
ibm10755801