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Processing of Unplanned Charges in Freight Payment

Question & Answer


Question

Processing of Unplanned Charges in Freight Payment

Answer

Processing of Unplanned Charges in Freight Payment

A carrier can submit accessorial charges in a carrier invoice. Sterling TMS uses the followingworkflow to process the charges:

  1. Sterling TMS determineswhether the charge matches an accessorial the shipper defined in thecontract. Your shipper administrator controls how Sterling TMS processescharges that do not match an accessorial in the contract:
    • You can have Sterling TMS ignoreany charges if the charge and allowance code is not defined in thecontract. Sterling TMS sendsthe Charge Not Recognized alert to users that subscribe to this alert.
    • If your organization uses the Match Pay feature you can allowthe carrier to 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.
  2. If the shipper defined a planned accessorial in the contract Sterling TMS automaticallyapplied the charge to the shipment. As a result Sterling TMS ignores anycharges submitted by the carrier that are covered by a planned accessorial.
  3. If the charge matches an unplanned accessorial in the contract Sterling TMS determineswhether the charge is above or below the approval threshold the shipperdefined:
    • The administrator defines the accessorial threshold amount whenassigning each accessorial to the contract. For example your organizationmight want to automatically approve any charge under $50 that thecarrier submits.
    • If the charge is lower than the approval threshold Sterling TMS automaticallyapplies the charge to the shipment.
    • If the charge is higher than the approval threshold the shippermust review the pending charge. The voucher is locked until the shipperapproves adjusts rejects or removes the charge.
  4. If your organization uses the Match Pay process and the carriercharges fall outside the defined tolerances and thresholds the shippermust reconcile the pending charge. The voucher is locked until theshipper reconciles the charge.

The following example scenarios show how Sterling TMS handles accessorialcharges submitted by carriers:

  • The carrier submits an unplanned accessorial charge. The chargehas a valid charge and allowance code for the contract that was usedto rate the shipment. Sterling TMS adds the chargeto the shipment. You can view the charge on the Charges Summary page.
  • The carrier submits an unplanned accessorial charge. The chargeand allowance code is not valid for the contract that was used torate the shipment. The shipper administrator configures Sterling TMS to ignorethe charge and send the Charge Not Recognized alert.
  • The carrier submits a charge that is covered by a planned accessorial.For example the carrier submits a fuel surcharge (EDI Charge andAllowance Code 405). Sterling TMS ignores thischarge and only applies the fuel accessorial charge that the shipperassigned to the contract.

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Document Information

Modified date:
08 December 2018

UID

ibm10755287