Freight Audit & Pay: How to Automate Carrier Invoice Audits

Eliminate Billing Errors: A Guide to AI-Powered Freight Auditing

This guide will walk you through how to use the Freight Audit & Pay feature built directly into your TMS.

By automating the time consuming process of importing carrier invoices, matching them with the correct manifests and rate confirmations, and managing discrepancies, our FA&P solution enhances operational efficiency, reduces costs, and ensures financial accuracy within your logistics operations.

Table of Contents

Getting Started with Freight Audit & Pay

Getting Invoices Into the System 

Invoice Processing & Matching

Status Assignment

Managing Partner Invoices

Configurations & Customizations

FAQ & Callouts

Getting Started with Freight Audit & Pay

Freight Audit & Pay is a feature embedded into TMS.ai in Accounts Payable - Tier 3. Please contact your Account Manager to upgrade your Accounts Payable Tier to access this feature. 

The Freight Audit & Pay feature centres around a new "Partner Invoices" board under the billing module. This board serves as the central hub for processing incoming carrier invoices, matching them to manifests, and managing the approval workflow before bill creation.

Getting Carrier Invoices into the System

There are 3 ways to get Carrier Invoices into the system for auditing. 

1. Email Auto-Forwarding (Recommended) 

• You will have a unique email address in your org that you can set up auto-forwarding to

• Copy that unique email and set up auto forwarding from your Accounts Payable inbox to this address 
• The system will then automatically process incoming emails and attachments 

2. Bulk Upload 

• Use "Create Invoice" button in the top-right corner of the Partner Invoices board (same as above)
• Instead of clicking Email import, click DataBot
• Drag and drop or upload the carrier invoices 
• The system will process each document and create the appropriate records 

3. Manual Creation

• Create individual Partner Invoice records
• Use DataBot widget to process invoice documents OR manually input invoice details if needed

Invoice Processing & Matching

When a carrier invoice enters the system, whether through email or upload, the system:

1. Document Analysis
   • Scans all pages of attachments
   • Identifies number of distinct invoices within documents
   • Classifies supporting documentation (PODs, rate cons, etc.) (Callout: currently doesn’t separate these documents)
   • Creates separate Partner Invoice records for each distinct invoice
2. Data Extraction
   • Pulls key information from invoices:
     • Invoice number and date
     • Total amount
     • Line items
     • Reference numbers
3. Manifest Matching
   • Attempts to match invoice to manifests using:
     • Manifest ID
     • Order ID
     • PO Number
     • Reference Number
     • Load Tender Number
   • Retrieves manifest details including:
     • Partner information
     • Line items and amounts
     • Current status
     • If there is already a connected Bill

Status Assignment

Partner Invoices are automatically assigned a status based on the matching results:

1. Approved Status
   • Exact match found with completed manifest
   • Amounts align (or within configured variance)
   • No existing bill for the manifest
   • Manifest in completed state
2. Needs Review Status
   • Amount discrepancy detected
   • Manifest already billed
   • Manifest not in completed state
   • No manifest match found

The specific reason for review is logged in the activity panel and visible to users. 

Managing Partner Invoices + Creating Bills

Users can work with Partner Invoices through:

1. Board View
   • Create custom filtered views (e.g., Needs Review, Approved)
   • View key information like variance amounts
   • Adjust "to be billed" amounts
   • Search for correct manifests if needed
   • Check manifest match information

1. Detail View
   • Preview full invoice via Databot Widget
   • View activity log with match reasoning

1. Bill Creation
   • Create bills individually or in bulk from approved invoices
   • Review details before bill creation
   • Maintain audit trail of approvals and changes

Configurations & Customizations

1. Approval Rules: 

You are able to customize the:

• Dollar amount variance thresholds
• Percentage variance allowances 
• Manifest status requirements

2. Status Assignment: 
You are able to customize:

• When invoices are auto-approved
• Review triggers
• Set up automatic bill creation (optional) 

 

FAQ & Callouts

 

Question	Answer
What happens if multiple invoices are in one PDF?	The system will analyze the document and create separate Partner Invoice records for each distinct invoice detected.
What happens to non-invoice attachments?	The system classifies non-invoice documents (like PODs) but doesn't create Partner Invoice records for them.
If an invoice doesn't match any manifest, what happens?	The invoice will be created as a Partner Invoice record with "Needs Review" status, allowing manual manifest searching and matching.
Can users edit amounts after matching?	Yes, the "to be billed" amounts can be adjusted before bill creation, even for matched invoices.
What happens if a bill was already created for a manifest?	The system will flag the Partner Invoice as "Needs Review" with a reason indicating the manifest was already billed.
How are amount variances handled?	Configurable automation rules can allow for approved status within specified dollar or percentage variances. Outside these thresholds, invoices are marked for review.
What if an email contains no invoice?	No Partner Invoice record will be created. The system only creates records when it detects actual invoices.
Can approved invoices be unapproved?	Yes, users can manually change the status back to "Needs Review" if needed.
Will this also work when a carrier uploads their invoice through a shared manifest?	There is no need for matching as the external user is uploading it to the manifest, and inputting the amounts for the bill. In the future we will look at feedback and look at adding this functionality

❗️Callouts:

POD Management:

While system can detect PODs in attachments, it doesn't:

• • • Automatically separate and store PODs
    • Attach PODs to related orders
    • Use POD presence/absence in automation rules
      
      

Processing Limitations

• • No bulk editing of partner invoices that need review
  • Limited automation rule options (amount matching, manifest status)
  • Cannot modify automation logic beyond provided options
    
    

Document Handling

• • No automatic categorization of supporting documents beyond basic classification
  • Cannot configure custom document type detection
  • No automated workflow for handling non-invoice documents