What is Freight Audit and Payment (FAP)? | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. 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The core check is a contract or rate audit: confirming that base rates, surcharges, and accessorial charges match negotiated terms and shipment data before an invoice is paid. Why FAP Matters --------------- Freight billing is complex and error-prone. Rates shift by lane, weight, class, and mode, and surcharges change often. Without an audit, errors get paid and refunds go unclaimed. FAP helps shippers prevent overpayment, recover eligible credits, and keep tighter control over transportation costs. Worth Knowing ------------- Many providers use FAP to cover parcel invoices too. Parcel is often discussed separately as [parcel audit](https://www.lojistic.com/blog/parcel-audit), parcel invoice audit, or carrier invoice management. Lojistic's [+PAY](/freight-audit-and-payment) handles parcel and freight in one workflow. What FAP Includes ----------------- ### Invoice Audit Checks every charge against contracted rates and shipment data. ### Refund Recovery Disputes errors and secures eligible credits. ### Carrier Payment Consolidates approved invoices and pays carriers on time. ### Cost Allocation Applies GL codes so costs land in the right accounts. ### Spend Reporting Tracks [freight spend](/shipping-analytics-software) by carrier, mode, and lane. Best Practices for FAP ---------------------- ### Audit before you pay Recovering money after payment is slower and less certain than stopping errors up front. ### Keep contracts current An audit is only as accurate as the rates it checks against. Review agreements regularly and [optimize rates](/rate-optimization-rfps) when terms drift. ### Audit every mode Errors show up in LTL, truckload, ocean, air, rail, and parcel alike. How It Works ------------ A typical FAP workflow moves each invoice from receipt to payment in four steps: 1. Collect: Invoices are pulled from every carrier and mode into one place. 2. Audit: Charges are checked against contracts, rate rules, and shipment data. Errors are flagged before payment. 3. Approve: Your team reviews a consolidated batch of invoices that are ready to be paid and signs off. 4. Pay: Carriers are paid, and costs are coded and recorded for reporting. The result: fewer errors, less manual work, and a clear record of what was paid and why. Common Issues FAP Catches ------------------------- ### Duplicate billing The same shipment invoiced twice, often across different invoice formats. ### Misapplied surcharges Fuel or accessorial charges that don't match contract terms. ### Invalid fees Charges for services that weren't requested or performed. ### Reweighs and reclassifications Weight or freight class changes that raise the bill without valid support. FAP Synonyms ------------ Freight Audit, Freight Bill Audit, Freight Invoice Audit, Freight Payment, Carrier Invoice Management, Transportation Audit and Payment On This Page ------------ - [Overview](#overview) - [Why FAP Matters](#why-it-matters) - [What FAP Includes](#what-includes) - [Best Practices for FAP](#best-practices) - [How It Works](#how-it-works) - [Common Issues FAP Catches](#common-issues) - [FAP Synonyms](#synonyms) - [Related Resources](#related-resources) - [Related Terms](#related-terms) - [FAQs about Freight Audit and Payment (FAP)](#faqs) Tags ---- - [Freight Audit](https://www.lojistic.com/glossary/tags/freight-audit) - [Freight Payment](https://www.lojistic.com/glossary/tags/freight-payment) - [Parcel Audit](https://www.lojistic.com/glossary/tags/parcel-audit) - [Carrier Invoices](https://www.lojistic.com/glossary/tags/carrier-invoices) - [Logistics](https://www.lojistic.com/glossary/tags/logistics) - [Transportation Costs](https://www.lojistic.com/glossary/tags/transportation-costs) - [LTL](https://www.lojistic.com/glossary/tags/ltl) - [Analytics](https://www.lojistic.com/glossary/tags/analytics) Related Resources ----------------- [Shipping Analytics Software](/shipping-analytics-software)Unlock insights with shipping analytics for freight and parcel. Optimize your logistics with our comprehensive data analytics software. Create a free accou... [Continue Reading](/shipping-analytics-software) [Rate Optimization & RFPs](/rate-optimization-rfps)Find out how to get better shipping rates for parcel, LTL, truckload, and international shipments for your business with the tech and software from Lojisti... [Continue Reading](/rate-optimization-rfps) [All Modes. All Carriers. All Currencies.](/carrier-connectors)Simplify multi-carrier shipping with our technology and connect seamlessly with carriers for easy, cost-saving global logistics tracking and solutions from... [Continue Reading](/carrier-connectors) Related Terms ------------- [Freight Forwarder](/glossary/term/freight-forwarder)A freight forwarder arranges international shipments for shippers, coordinating carriers, documentation, and compliance. Learn what they do and how they wo... [Continue Reading](/glossary/term/freight-forwarder) [Parcel Audit and Payment](/glossary/term/parcel-audit-and-payment)Parcel audit and payment reviews UPS, FedEx, and DHL invoices for errors, recovers refunds, and manages payment. Learn what it covers and how it works. [Continue Reading](/glossary/term/parcel-audit-and-payment) [Freight Broker](/glossary/term/freight-broker)A freight broker connects shippers with carriers for domestic truckload and LTL freight. Learn what brokers do, how they're paid, and how to work with one. [Continue Reading](/glossary/term/freight-broker) [FOB Shipping](/glossary/term/fob-shipping)FOB shipping terms define when ownership, risk, and freight costs pass from seller to buyer. Learn the difference between FOB Origin and FOB Destination. [Continue Reading](/glossary/term/fob-shipping) ### FAQs about Freight Audit and Payment (FAP) What's the difference between freight audit and freight payment? Freight audit checks each invoice against contracts and shipment data. Freight payment processes and pays the approved invoices. FAP combines both, so errors are caught before money goes out, and also streamlines the payment process. Who uses freight audit and payment? Shippers that manage complex networks or move high volumes of physical products. It's typically owned by [logistics, procurement, and finance teams](https://www.lojistic.com/roles-most-impacted). How much does freight audit and payment cost? It varies by provider. Many charge a flat fee, a percentage of recovered savings, or a percentage of spend under management. With [+PAY](https://www.lojistic.com/freight-audit-and-payment) by Lojistic, qualified clients get audit, recovery, and carrier payment at no cost. See [pricing](https://www.lojistic.com/pricing) for details. Terms and conditions apply. Still need help? 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