Reconciling freight bills and invoices

When we confirm our shipment, a freight bill is generated with the estimated costs calculated by the rate engine. As this bill is estimated, we can have differences between what is charged on the bill and what comes in the shipping carrier invoice, which could affect the costs of the sales order, for example.

Not to mention that, daily, companies receive tons of carrier invoices that need to be matched with every associated shipment.

This is commonly known as the freight bill reconciliation or matching process. There are two ways to perform freight reconciliation: manually or automatically. We must set up parameters to use automatic reconciliation to define the criteria that match bills with invoices.

For a better understanding, the TMS within Dynamics 365 proposes the following process for freight reconciliation:

Figure 9.34 – The freight reconciliation process

The freight rate is calculated by the...