Accounting Processes for LTL Exceptions and Variances
Dealing with LTL variances and exceptions for LTL freight is a common occurrence, whether its a reweigh, reclass, liftgate charge, residential fee, etc. Properly processing these carrier bills in a TMS and communicating them to QB can be challenging at times. Here are a couple of ways to manage these incoming supplemental carrier bills without having to modifying your existing invoice or carrier bill.
Create Supplemental Customer Invoices – After a customer invoice has been created and sent, it is a best practice to create a supplemental invoice for the additional charge rather than modifying the existing customer invoice. This leaves the original invoice intact and allows for separate tracking and processing of the second invoice while still being associated with the original shipment.
Create Supplemental Carrier Bills – When receiving a supplemental carrier bill after the initial carrier bill was approved and paid, it is preferable to create a supplemental bill to the shipment instead of modifying the existing carrier payable to add these additional carrier charges.
Benefits of Supplemental Invoices & Bills vs. Modifying Existing Invoices & Bills:
- Visibility on the TMS: By adding a supplemental invoice or bill to the original shipment, it is easy to show the TMS user that two separate invoices / bills were created, approved, and processed including information about when and why those actions happened.
- Keep Track of Invoice, Bill & Payment Dates: Since the original invoice and/or bill are separate from a supplement invoice and/or bill on the TMS and QB they can have separate invoice, bill & payment dates making it easier to track the changes associated to a specific shipment. This also makes it much easier to reconcile data between the TMS and QuickBooks.
- Closed Accounting Periods: Accountants do not like when you try to modify an existing invoice or bill in a period that they just closed. Supplemental Invoices allow for shipments to be modified when needed without interrupting accounting processes associated to bank audits or taxes.
If you would like more information on how our Freight Broker Software can efficiently process LTL exceptions and variances, please email me at jon.lansangan@efreightsolutions or call 877-261-4004 x130.