Earlier this week we discussed the required documents for booking a load, but what about the documents for invoicing a load? Let’s look at the primary documents involved in the invoicing process.
ACH Authorization Form
While an ACH Authorization Form is not required to invoice a load, it is a document that you may come across or that you may need. An ACH (Automated Clearing House) Authorization Form is a document that gives a company or organization permission to electronically debit or credit funds to a bank account. It may be used by carriers to collect payments directly from a customer's bank account for services rendered. This form ensures that payments can be processed efficiently and securely through the ACH network. You might hear a related phrase EFT or electronic funds transfer.
We have a FREE ACH Authorization form that can be downloaded from our FREE Resources page here.
Notice of Assignment
A Notice of Assignment is not a required document for the invoicing process if you do not use a factoring company. Notice of Assignment is a document that notifies your customers that a third-party financial institution (a factoring company) purchases your unpaid invoices) and the payments should be made directly to the factoring company. This document is sent to your customers after completing a load or can be included in the onboarding packet that you send to your customers. If you have a NOA and use a factoring company, it is likely that you will not be invoicing your customers directly, but instead providing your factoring company with the required documentation.
It may seem obvious, but you will need to provide an actual invoice document to your customer to receive payment. This document is sent by the carrier to a customer (such as a shipper or freight broker) to request payment for transportation services provided. It will include details about the shipment, such as the type of service, quantity, rate, total charges, payment terms, and instructions for making payment. See an invoice example below:
You can download a FREE Invoice template, which is customizable (can insert your own company details and logo), from our FREE Resources page here.
Rate Confirmation is a document that outlines the agreed-upon freight rate for a specific shipment between a shipper (or freight broker) and a carrier. It confirms the financial terms of the transportation service, including the agreed-upon payment for transporting the goods from the origin to the destination. The Rate Confirmation typically includes details such as the pickup and delivery locations, shipment dates, commodity information, and the negotiated freight rate. It serves as a contractual agreement between the parties and helps ensure transparency and clarity regarding the financial aspects of the transportation arrangement. Some customers would like to see this document included with the invoice as proof of the rate agreement.
Proof of Delivery
Your invoice will need to be paired with a Proof of Delivery (POD) if you want to receive payment. A POD is a document that provides evidence that a shipment has been successfully delivered to the recipient. It is typically the signed Bill of Lading. It may include the recipient's signature, date and time of delivery, recipient's name, and any notations about the condition of the goods upon delivery.
You can download a FREE Bill of Lading template from our FREE Resources page here.
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Soshaul Logistics LLC and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. It is meant to serve as a guide and information only and Soshaul Logistics, LLC does not assume responsibility for any omissions, errors, or ambiguity contained herein. Contents may not be relied upon as a substitute for the FMCSA's published regulations. You should consult your own tax, legal and accounting advisors before engaging in any transaction or operation.