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Should I short pay my carrier invoice?

short pay reduces the amount paid to the carrier by the amount that’s assumed to be billed incorrectly.

If you are a shipper, most likely you make your best guess at accounting for credits before you short pay your carrier. A short pay is a partial payment of an invoice which can happen for a variety of reasons like disputes, late deliveries, and overcharges. A shipper reduces the amount paid to the carrier by the amount that’s assumed to be billed incorrectly.

Short pays can be frustrating to manage because there isn’t a closed-loop process for correcting invoice errors causing the short-pay cycle to continue. Share A Refund provides a better way to manage invoice payments. The extra workload associated with processing balance-due invoices and constant carrier account reconciliation is reduced through Audit and Recovery, GL Coding and Invoice Payment Remittance.

Share A Refund eliminates the need to short pay carriers

When a Share A Refund dispute is approved, the credits are applied to the invoices automatically. There’s no need to short pay the invoice, only the net amount due for a given invoice. If the carrier invoice is paid by a card stored on file, then the amount transacted is correct by default.

If check payments or ACH payments are remitted to the carrier for a given invoice, then the amount paid for that invoice should reflect the net amount due for the given invoice. Pay remittance reports can be scheduled within the Share A Refund system to pay the correct amount by check or ACH.

Combat overcharges with Invoice Payment Remittance

Overcharges frequently happen when all carrier invoices are automatically approved for remittance. The effort involved to sort through each cost component for discrepancies is cumbersome and overcharges go unidentified. For high-volume shippers that are integrated with the carriers via Electronic Data Interchange (EDI), Share A Refund provides a solution to combat overcharges effectively.

Invoice Payment Remittance (IPR) receives carrier invoices in near real-time through EDI feeds. Invoice discrepancies are identified, flagged for non-payment and adjustment-notification documents are created. Remittance documents are submitted according to the transaction set standards defined by the carriers. IPR saves your accounts payable department from having to manage and reconcile multiple carrier payments by compiling all approved expenses into one consolidated invoice.

A new standard for GL Coding of freight invoices

The processing of carrier invoices and carrier remittances can become unmanageable when performed manually. Many shipping charges are not coded properly to the general ledger in terms of the cost center used. Shipments tendered incorrectly, with the incorrect reference fields and on the wrong account represent 2 to 20% of all shipments.

Share A Refund works with businesses to identify the most efficient GL coding methodology. The General Ledger Coding service (GLC) automates the process of GL coding by eliminating the continuous manual data-entry process and programming GL Coding logic into Linked Rules. These rules govern how shipping charges are routed into cost centers and work together to handle exceptions seamlessly.

Put the cost accounting of your shipping on autopilot

Share A Refund works seamlessly within existing information systems and payable procedures. The entire process is automated and ensures overpayments and short payments are eliminated completely.

Do you have an existing auditing agreement?

Save up to 70% in service fees and get more refund credits with Share A Refund.

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