Accounts Receivable 1/2013
Mission Statement The Accounts Receivables Department is responsible for timely collection of unpaid freight charges for transportation services provided.
Department Structure • Tier One • 1st point of contact • Begins calling on Day 31 • Account Aging/Demand Letter Sent • Tier Two • Problem Resolution • Escalated Issues • 2nd Demand Letter Sent • Revenue Recovery • Uncollectible Monies • 3rd party involvement
Your Responsibilities SECURE SIGNED RATE AGREEMENTS ENTER ACCURATE DATA INTO LEADS KNOW YOUR CUSTOMER’S BILLING REQUIREMENTS PROVIDE REQUIRED DOCUMENTATION COMMUNICATE CUSTOMER REQUIREMENTS TO BCO OR BROKER CARRIER COMMUNICATE WITH A/R MONITOR YOUR AGING
Rate Confirmation Sheet • WRITTEN LOAD CONFIRMATION FROM YOUR CUSTOMER AGREEING TO A SPECIFIC RATE • What else could be included?? • Pallets • Loading/Unloading • TONU & Deadhead • Detention & Layover • Special Equipment • Permits & Escorts • Exclusive Use • Expedited Service/Team Service • Stop Offs/Out of Route Miles • Per Diem
Broker Confirmation Sheet You must notate specifically what the broker is required to provide, how much they will be paid and how much we can deduct for failure to comply. Without this, you and Landstar will be responsible for any charges unpaid by customer
Customer Requirements WHAT ARE THEY? • WHAT YOUR CUSTOMER REQUIRES FROM US TO PAY THE BILL… • I.E. Bill of Lading/Proof of delivery; Customer reference number in BOL field; Lumper Receipt; etc WHY THEY ARE IMPORTANT: • MISSING REQUIREMENTS RESULTING IN NON-PAYMENT CAN RESULT IN AGENCY DEDUCTIONS COMMUNICATION IS KEY!!!!!!!!
Agent Risk WHAT IS IT? • ANY AMOUNT BILLED OVER THE CREDIT LIMIT OR ANY AMOUNT BILLED TO A CUSTOMER WITH NO CREDIT WHY IT IS IMPORTANT: • BILLING LOADS AT AGENT RISK MAKES YOU ULTIMATELY RESPONSIBLE FOR THE FREIGHT CHARGES IF THE CUSTOMER REFUSES TO PAY…. • TAKE SMART, CALCULATED RISKS…
Agent Deductions • CAN AN AGENT BE CHARGED BACK FOR LOADS COVERED UNDER A CREDIT LINE? • YES!!!!! • WHY???? • Agent Billing Mistakes (I.E. billing wrong customer; missing customer requirements) • Unable to Provide Rate Confirmation Sheet • Unable to Meet Terms on Signed Rate Confirmation Sheet (for which customer short-pays the invoice)
What is Revenue Recovery? The Revenue Recovery team works to make every effort in recovering monies owed to Landstar but deemed uncollectible by the Tier 2 analyst.
RR COLLECTION METHODS? 10 Day Demand Letter (10DDL) May Be Sent to Debtor via Certified Mail If No Response to 10DDL, Debtor File Will Be Forwarded to Outside Collection Agency If Outstanding Receivables = Agent Risk at Time Load Was Moved, Agency Deductions Will Be Set Up If Outside Collection Agency Is Able to Collect, The Agent Will Be Reimbursed Any Deductions Minus Collection Fees
Questions? Comments? Phone Number: 800-241-7528 Presentations are customarily updated on a bi-annual basis (information is subject to change).