Freight Audit

Electronic Transport Order File (hereinafter referred to as “ETOF”) - an electronic shipment record in FRED. Uploaded LC file is split by the system into single shipment records (ETOFs) according to the pre-defined rules, which are then pre-calculated according to Rate Agreements (hereinafter referred to as “RA”) in Freight Rate Exchange Database (hereinafter referred to as “FRED”).

Each ETOF has 5 tabs:

1. Overview - here you can find information about which carrier the ETOF belongs to, the LC number, whether the ETOF was marked as a duplicate, and other information.

2. The Order contains one or several order (LC) item(s), consolidated to this ETOF. In order to check shipment details – click on the number of order item #. In the open table, you can see all the available information for the particular shipment.

3. On the Pre-calculation, you can find shipment details, used for pre-calculation, calculated cost, extra costs and costs details, corresponding RA number.

4. On the Invoice Statement, you can find corresponding Invoice Statement Document (hereinafter referred to as “ISD”) items but only in case ETOF is mapped to ISD.

5. On the Match, users can see the comparison of the calculation based on the rates provided by shipper with the carrier prices, but only in case ETOF is mapped to ISD.

Main statuses are listed below:

Find the required shipment in FRED

Search ETOF - allows users to search for ETOFs in the FRED based on ETOF's number or available filters, including exact order tags. Each ETOF has its own unique number within one customer environment which always has the following structure. Letter E – comes as a first letter in ETOF. Then goes the year, month, and a day – this is the date when the record has been created on the FRED. Then we have 5 numeric digits, which are the serial number of the record on this date.

Respective ETOF can be found by the main reference number of the shipment. Please log into FRED, navigate to Orders located in the menu bar and follow Search ETOF in the dropdown list. Search for the required shipment using the order fields (for e.g DELIVERY_NUMBER, SHIPMENT_ID).  Please mind adjusting the ETOF # field with the required period (e.g by leaving E2023 if you are looking for the ETOF created in 2023).

Users can also search shipments by data status, transport status, or search for ETOFs by a specific value. To do this, select the required parameter in the order fields drop-down list. For example, we can search for ETOFs by delivery number or shipment ID, by airports, countries of origin and destination, date, etc.

In order to find ETOF by delivery number, select the delivery number option and enter the necessary value in the corresponding field on the right.

Most frequently used filters during the ETOF search.

1. In order to find

NOT valid shipments in the FRED:

• Select Search ETOF

• Add Not valid mark in the block Data status:

• Add Not approved mark in the block ETOF status: (to exclude closed data)

1. In order to find shipments in

Carrier Agreement Not Found (hereinafter referred to as CANF) status in the system:

• Select Search ETOF

• Add Valid mark in the block Data status:

• Add CA not found mark in the block Calculation status:

• Add Not approved mark in the block ETOF status: (to exclude closed data).

1. In order to find shipments in

Not matched status in the system:

• Select Search ETOF

• Add Valid mark in the block Data status:

• Add Not matched mark in the block Match status:

• Add Not approved mark in the block ETOF status: (to exclude closed data).

After the necessary filters are selected - click Search. In order to review ETOF click on its number, it is a hyperlink.

Invoice Statement Document (hereinafter referred to as “ISD”) – pre-invoice data file from carrier converted in Freight Rate Exchange Database (hereinafter referred to as “FRED”) system format or created internally by Transporeon Freight Audit (hereinafter referred to as “TP FA”) based on shipment/final invoice data which contains shipment data plus costs and charges requested by carrier for a particular shipment.

Each ISD has 4 tabs:

1. Overview - here you can find information about which carrier the ISD belongs to, invoice statement file details (file name, reference invoice number & amount, reception date transport period etc.), total cost description and currency, data status (valid or not valid), match status (matched or not matched), ISD status (in process, wait for invoice, invoice received, closed), approve status (not approved, approved, closed) and other information.

2. Invoice statement items contains all shipments provided in pre-invoice data file. In order to check separate shipment details – click on the number of invoice statement item #. In the open table, you can see all the available information for the particular shipment. Also, shipments can be split per defined search parameters: data status, match status, Electronic Transport Order File (hereinafter referred to as “ETOF”) mapping status, mapped to ETOF On hold, issue status.

3. On the Extra cost, you can find extra cost shipment(s) details (if applicable).

4. On the Invoice info allows to check the information about the invoice, related to this ISD: whether it was received and approved by TP FA or not and also information about Invoice Statement Document Result (hereinafter referred to as “ISDR”).

Find the required ISD in FRED

Search ISD - allows users to search for ISD in the FRED, based on ISD #, some dates, statuses, etc. Each ISD has its own unique number which always has the following structure. Letters ISD – defines the document. Then goes the year, month, and a day – this is the date when the document has been created on the FRED. Then we have 5 numeric digits, which are the serial number of the document on this date.

Respective ISD can be found by the main reference number of the shipment. Please log into FRED, navigate to the Invoices located in the menu bar and follow Search ISD in the dropdown list. Search for the required invoice statement document using the fields: ISD#, ISD comment, invoice#, reference invoice number, FID# (final invoice document - internal FRED identification of invoice), carrier etc. (can be selected separately). Please mind adjusting the ISD # field with the required period (e.g by leaving ISD2023 if you are looking for the ISD created in 2023 or ISD202301 if you are looking for the ISD created in January 2023).

Most useful filters during the ISD search

In order to filter out ISDs that is in processing, you need to select the boxes:

• ISD status In process

• approve status Not approved

In order to find ISDs for which an ISDR has already been created but an invoice has not yet been received, select the boxes:

• ISD status Wait for invoice

• approve status Approved

The same filters are used to find ISDs for which an invoice has been received but has not yet been approved.

To find ISDs for which an invoice has already been approved, select the boxes:

• ISD status Invoice received

• approve status Approved

After the necessary filters are selected - click Search. In order to review ISD, click on its number, it is a hyperlink.

This file contains all the necessary information for issuing a valid, errorless freight invoice. An ISDR includes invoice entity name, invoice entity address, Value Added Tax (hereinafter referred to as “VAT”) number of the invoice entity, total amount to invoice, currency, reference numbers, etc.

The ultimate purpose of an ISDR is to ensure that the carrier submits a 100% correct invoice.

Other goals of the ISDR are as follows:

●       providing easy tracking of closed/non-closed billing periods;

●       speeding up the payment process;

●       decreasing the amount of incorrect final invoices and as a result the time spent for making corrections.

There are three ISDR statuses available in the Freight Rate Exchange Database (hereinafter referred to as “FRED”) system. Below you will find a detailed overview of each ISDR status:

In process status - an ISDR was created in the system, but not yet sent to the carrier/shipper due to open issues, additional clarifications, etc.

Wait for invoice status - an ISDR was sent to the carrier/shipper. A carrier must submit and provide an invoice according to the agreed procedure and requirements..

Invoice received status - an invoice for this particular ISDR was received, approved and sent to the shipper for payment. End of the audit process

If a carrier agrees with the ISDR data, an invoice should be issued immediately. If a carrier disagrees with the ISDR data (e.g. discrepancies were found), an Issue Resolution (hereinafter referred to as “IR”) process has to be initiated in the FRED system. Clarifications regarding incorrect, missing or excess costs, incorrect shipment data should all be settled via IR tool.

For more information on how to search for an ISDR please log in to FRED and navigate to the Documentation section located in the FRED top menu bar. Appendix_B_ISDR is available under User guides folder.

FID# (final invoice document number indicated in the “Search final invoice” tab in FRED) - a unique number applied for an internal FRED ID of invoice.

Status of invoice(-s) can be checked directly in the FRED system.

Main statuses are listed below:

A Credit Note (hereinafter referred to as “CN”) is an additional invoice with a negative amount issued by a carrier for a shipper in order to pay back the amount which was overbilled on the original invoice.

Credit Note request (hereinafter referred to as “CNR”) is a tool to request credit notes quickly and register them efficiently in FRED, thus providing a full visibility of the audited costs discrepancies.

Main statuses are listed below:

Note: Until all issues are resolved, the audit process cannot be finalized. Quick responses contribute to timely invoice approval and on-time payment.

Any inquiries regarding the status of payments made in accordance with the approved invoices should be sent directly to a shipper. Invoices in any other pending status, other than approved, are not sent for payment to a shipper.

Find the required FI in FRED

Search Final Invoice - allows to find invoices in the FRED in different audit and payment statuses.

Action filter allows users to select invoices that have been created, changed, approved, assigned, or a credit note for which has been requested by specific users of the FRED. Also, invoices can be filtered by fields carriers and invoice entity, payment status, and credit note status. Invoices can be found based on invoice #, receive date, invoice date, denial date, due date, approval date. To do this, set the period and click Search.

In the search result, users can see all invoices, registered in FRED. If an invoice was not found in FRED, it means that it was not received by TP FA for processing. Carrier should check if it was correctly sent to TP FA or re-sent it once more.

In this table, you can see all invoices and general information: invoice#, FID[1] # (final invoice document - internal FRED identification of invoice), invoice date, invoice amount, ISDR# (the number of the document in FRED which is used for checking invoice details), due date, and status.

Also, you can use the status of the invoice for the search. For more information on how to search for a FI please log in to FRED and navigate to the Documentation section located in the FRED top menu bar. “Appendix_C_Final Invoice” is available under User guides folder.

ECM purpose is to provide extra cost and/or spot price handling visibility and to speed up the process of charges settlement between a shipper and a carrier.

The ECM tool provides coverage of all costs which are treated as unpredictable and/or out of the rate-book (spot prices, if applicable) with full transparency, accessibility and proper visibility for both shipper and carrier.

There are two alternative, mutually exclusive approaches for ECR resolution:

There are two types of ECRs available in FRED:

The main difference between regular and extended ECR is that a corresponding extra cost ISDR is automatically generated as soon as an extended ECR obtains Confirmed status.

The following ECR statuses are applicable:

Approval status

Note: Additional status (Waiting for confirmation) was designed in order to facilitate ECR search for shipper users utilizing multi-level workflow. It allows finding the ECRs which are pending action from the second shipper responsible person.

Confirmation status

Note: In case of a single-level workflow an Approved ECR is assigned Confirmed status automatically and doesn’t require any additional actions from the shipper.

Note: In case shipper user responsible for ECR resolution (or, in case of multi-level workflow, for the 1st level of approval) decides not to accept the ECR (either not approves or rejects it), an ECR will be automatically assigned with Not approved approval status and Rejected confirmation status. While in case second approver in multi-level workflow decides to reject the ECR, it will have Approved approval status and Rejected confirmation status simultaneously. In both cases ECR will not be applied for calculation.

Mapping status

Note: An ECR can also be mapped to an Extra cost Invoice Statement Document (hereinafter referred to as “ISD”) instead of ETOF if so agreed with the shipper.

There is instructional video on how to search for an ECR, how to accept/reject an ECR available in the Tutorials menu located in the FRED top menu bar and User Manual located in Documentation section in the FRED top menu bar. Appendix_F._ECM.pdf is available under User guides folder.