Billing Adjustment Definition


Billing Adjustment Definition

A billing adjustment is a percentage of unpaid freight transportation costs usually reported by the carrier. A billing adjustment is also referred to as a "rebill." A billing adjustment can only be sent once the broker has received the second invoice. This is because of an inconsistency in the size of items, weight, and number at the delivery time.

Freight carriers have the right to measure and weigh any cargo proffered to them. They usually have highly advanced multidimensional measuring equipment that enables them to determine the exact weight and size of any package, pallet, box, or crate.

Where to Obtain Details about Billing Adjustments

In cases where drivers deliver services beyond the limit stated on the bill of lading (BOL), they will be required to make those adjustments on the proof of delivery (POD). The driver will proceed to sign and provide you with a copy of the POD after inspecting your shipment. Details incorporated in the proof of delivery document include confirmation of the contents, dimensions, and weight of your shipment and any damages to the cargo.

If there are any inconsistencies between the bill of lading and proof of delivery, you will receive a second invoice in the form of a bill of adjustment from the carrier. You will then be contacted by a representative asking for payment of the unpaid balance. The account or credit card used for clearing the initial cost for the billing adjustment will be charged after 72 hours.


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How Can You Avoid Billing Adjustments?

When receiving a freight quote, the type of product, distance, pick-up and delivery location, freight class, dimensions, weight, and the number of items all determine the cost to transport. The most effective way to avoid a billing adjustment is to ensure that all information given to your carrier at the time of booking and quoting is 100 percent accurate and complete.

  • How do you intend to load your cargo onto the truck? Typical less-than-truckload service includes curbside pick-up and delivery. If you need a lift gate to lower or raise your shipment into the back of a truck, you must send the request for that equipment at the time of quote.
  • Ensure that you provide accurate weight-The primary cause for most billing adjustments is estimating how much your packaged cargo weighs. It is important to note that all packaging adds to the net weight of the freight. When planning your pick-up, ensure that you're accurate and honest about the weight of your packaged cargo.

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