Per-container vs. bulk accruals

Forwarders typically use one of two different methods for accruing costs for multi-container shipments.

  1. Per-container accruals, which we believe to be best practice, specify separate cost lines for each container. For instance, you may have multiple delivery charges for the same vendor on the same shipment.
  2. Bulk accruals are a single lump-sum amount that you expect to hit against invoices multiple times. The shortcomings of this approach are that it's hard to automate (since the amounts don't match) and difficult to audit.

 

How BravoTran handles per-container accruals

Although we consider the use of per-container accruals to be best practice, there is a known bug in CargoWise that can cause unwanted behavior when they are used. Specifically, this bug leads to accruals to be inadvertently lumped together once the first cost has been posted, effectively reverting a per-accrual costing to a bulk accrual. This situation only arises for accruals with the same charge code, same vendor, and same job, but this bug makes it difficult to compare charges against accruals on a container-by-container basis and impedes automation.

 

To correct for this bug while still allowing forwarders to maintain per-container accruals, BravoTran holds approved invoices until a charge has been received for the final accrual, at which point BravoTran posts all the accruals with the same job/vendor/charge code.

 

You can see information on “Withheld Invoices” in this screen, and you have the option of immediately posting invoices by clicking “Transmit Now.”

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When these invoices post in CargoWise, BravoTran also sends a PDF document to eDocs with full detail on the job accruals and charges.

 

To achieve full automation, even when container accrual amounts are identical, ask your operators to enter their container numbers in the Supplier Cost Reference field in CargoWise when making accruals. This Supplier Cost Reference field is visible from the Cost tab on the Billing screen.



 

How BravoTran handles bulk accruals

Because a bulk accrual covers costs for multiple containers, the initial accrual amount is typically much larger than the invoice amount. As long as the invoice amount is less than the accrual amount by more than your Final Flag threshold, BravoTran does not check the Final Flag in CargoWise and CargoWise will create a carry-forward accrual. Usually the final invoice (which should relate to the final container cost) will use up all or most of the remainder accrual, which should cause the Final Flag to get checked.

 

Example: The Final Flag threshold is set at $100 and an accrual of $1500 is created to cover three $500 drayage moves.

  1. The first invoice for $500 is received and posted. The difference between the invoice amount and the accrual is $1000, which is greater than the $100 threshold. The final flag does not get checked and a remainder accrual of $1000 is created.
  2. The second invoice for $500 is received and posted. The difference between the invoice amount and the accrual is $500, which is greater than $100. The final flag does not get checked and a remainder accrual of $500 is created.
  3. The third and final invoice for $500 is received and posted. The difference between the invoice amount and the accrual is $0, which is less than $100. The final flag   gets checked and no remainder accrual is created.

 

Final Flag

When the Final Flag is not checked in CargoWise, CargoWise creates a carry-forward accrual if the charge is less than the accrual. Conversely, when the Final Flag is checked in CargoWise, CargoWise does not create a remainder accrual.

 

Freight forwarders do not check the final flag when they expect to receive another invoice for the same job/vendor/charge code. This occurs when there are multiple per-container costs that get invoiced separately. This can also occur when the freight forwarder uses the same charge code to cover distinct services provided by a single vendor.

 

During setup we establish a standard Final Flag threshold amount that determines when BravoTran checks the Final Flag. When a charge is posted that is less than the accrual amount by more than this threshold, BravoTran leaves the Final Flag unchecked. In all other cases, BravoTran automatically checks the Final Flag.