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Freight Audit & Pay

What is Freight Audit & Pay?

Freight Audit & Pay in TMS.ai is an AI-powered system that automatically validates carrier invoices against rate confirmations and contracted rates. Instead of manually comparing each carrier bill line-by-line to verify charges, TMS.ai's intelligent matching engine reviews carrier invoices, compares them to the original rate agreement, identifies discrepancies, and flags issues for resolution. This automation ensures you only pay correct amounts while dramatically reducing the time your accounting team spends on invoice verification.

The system understands the complexity of freight billing beyond simple price matching. It validates accessorial charges against what was actually required for the shipment, verifies that fuel surcharges match the agreed formula and fuel price indexes for the shipment dates, checks that any detention or layover charges align with documented timestamps, and ensures weight-based charges match the actual shipment weight. TMS.ai's AI recognizes which variances are acceptable billing adjustments versus which represent overcharges requiring dispute.

How Freight Audit & Pay works:

  1. Invoice receipt and processing: Carrier invoices arrive through multiple channels including email, EDI (810 transactions), carrier portal uploads, or API connections. TMS.ai's document processing automatically extracts all charges, line items, reference numbers, and supporting details from each invoice regardless of format.
  2. Order matching: The system matches each invoice to the corresponding order in TMS.ai using various identifiers including your internal order number, customer reference numbers, bill of lading numbers, pro numbers, or pickup and delivery location combinations. Advanced matching algorithms handle scenarios where carrier invoices use different numbering schemes or reference formats.
  3. Rate validation: TMS.ai compares invoiced charges against the rate confirmation or carrier agreement that was in effect when the shipment was tendered. The system validates base linehaul charges, accessorial fees (lumper, detention, layover, storage), fuel surcharge calculations based on DOE averages or contracted formulas, and any weight or dimension-based charges.
  4. Discrepancy identification: When invoice charges don't match expected amounts, TMS.ai categorizes the variance. Overcharges are flagged with explanation (accessorial not authorized, incorrect rate applied, duplicate charges). Undercharges are identified for potential recovery. Acceptable variances within tolerance thresholds are automatically approved. Significant discrepancies are routed to your accounting team with context showing what was quoted versus what was billed.
  5. Approval workflow: Invoices are routed based on your business rules. Exact matches to rate confirmations can be configured for auto-approval and payment processing. Invoices with minor variances within your tolerance (typically $10-50) can be approved automatically. Significant discrepancies enter a review queue where your team investigates the variance, contacts carriers when necessary, and approves adjusted payment amounts or disputes incorrect charges.
  6. Payment processing: Approved invoices are prepared for payment either through direct integration with your accounting system (QuickBooks, Sage, Dynamics) or through export files formatted for your AP system. The platform tracks payment status, maintains audit trails of all decisions, and provides visibility into payable aging and cash flow timing.

What it means for you:

Your accounting team's productivity increases by 4-5x on invoice processing. Instead of manually auditing every invoice (taking 10-15 minutes per invoice for complex shipments with multiple accessorials), your team reviews only flagged discrepancies while TMS.ai auto-validates the majority of invoices. A mid-sized brokerage processing 500 invoices weekly reported reducing invoice processing from 40 hours per week to 8 hours with AI-powered audit.

Error detection becomes comprehensive rather than sample-based. Manual audit catches perhaps 60-70% of billing errors because humans tire and miss details during repetitive tasks. TMS.ai's AI reviews every charge on every invoice with consistent attention, catching overcharges your team would have missed. Over a year, this typically results in 1-2% cost savings on total carrier spend by preventing incorrect charges from being paid.

Cash flow management improves through faster invoice processing. When invoices are validated and approved within 24-48 hours of receipt rather than 7-10 days, you can take advantage of early payment discounts (typically 2% for payment within 10 days) while maintaining positive carrier relationships through consistent, prompt payment. The system also provides better visibility into payable timing, helping you forecast cash requirements more accurately.