Getting Paid: Key Pieces of the Puzzle (for Many Markets)

Unless you are a one-person show who handles billing of every shipment from agreeing to cover it at a specific payout through invoice creation, submission, defense (in some instances), and then auditing the final payment that arrives in your company’s bank account, chances are that you likely aren’t aware of all that goes into making sure that payment is timely and accurate.

And all of the intricate factors involved not only differ by market but can differ by subsets within each market.

However, there are some key large-scale factors and concepts that apply across the board (or vary only slightly between markets). And, luckily for you who wants to know more or refresh your memory, here is a breakdown of many of those factors:

In general, what billing rules of thumb apply to each market?

DOD HHG Shipments

First and foremost, you need a compensation schedule (comp schedule) signed by both your company and the TSP/Move Manager who will be paying you for your work. This determines what pay you will receive for what work performed.
Once you handle the shipment and are ready to bill it, you’ll need to compile your billing packet – this serves many purposes including the data you need to rate your work and the documentation to back up your execution of the work on which you are billing. This packet typically includes a rated GBL, weight tickets (both tare and gross), and signed DD619s for any accessorials performed.

National Account Shipments

In this market, your first need is to have a copy of the tariff that will be used to rate your shipments (while most are extremely similar, every RMC and direct corporate account is required to establish their own). You will also need a copy of the policies that apply to that shipment – and this can vary not just by RMC but also by each corporate client an RMC services. There are a lot of potential variants when billing in this market!
The specifics of a national account billing packet can also vary and be determined as uniquely as the policies for the move, but in general they will all typically require: a rated Bill of Lading and weight tickets (both tare and gross).

GSA & DOS Shipments

Much like the National Account market, these moves vary when it comes to billing paperwork requirements, however you will once again need to start with your compensation schedules/agreements signed by your company and the TSP that detail how you will be paid for your work performed.
When it comes to the billing packet, not only does the type of shipment have an influence but each agency is also able to establish their own rules and requirements which impact every step of billing from top to bottom. Despite that variability, it is reasonable to expect each move to still require the appropriate Bills of Lading (government, household goods, ocean, etc.) and weight tickets (again, both tare and gross) at a minimum. Additional documentation is likely but will vary.

For all these markets, you will need to be able to interpret your comp schedule / polices and then accurately rate the shipment using the applicable tariff. Often this is where the biggest delay occurs in the process. The time it takes to do this rating accurately varies by company – and often even by employee, if more than one person is working in billing. Distractions of other responsibilities and just workload volume all play a role in how timely and accurately an invoice can be created. The good news is that Daycos can help! We offer invoicing services in all of these areas. (You can learn more about that by clicking here or giving us a call!)

Once the invoice is accurately rated and created, you need to know how the TSP/Move Manager/RMC wants you to submit your invoice and supporting documents. Oftentimes, creating the invoice causes enough of a delay for an agent, you don’t want an incomplete billing packet or incorrect submission to exacerbate that issue!

Finally, once all of this work is done and the invoice has been submitted for payment, you’ll want to monitor your accounts receivable for payment. When it is made, it’s a good idea to verify the payment matches the invoiced amount you submitted. If it does not, then it’s time to work through your rating process and application of the comp schedule / policies to the tariff to determine if an error was made or why the amount did not match. You can use this information to update your processes for more accuracy moving forward or to work with the TSP/Move Manager/RMC regarding the discrepancy.

The billing process for each shipment starts long before it’s even accepted. And truly everyone plays a role: agreeing to payment terms, gathering the necessary documents and signatures during the hands-on work, rating the invoice & submitting it for payment, and post-auditing the payment.

When you know what is required ahead of time and have a plan in place to execute it, you are more likely to reap the benefits of a timely and accurate payment for your work.