accounts receivable

1

Accounts Receivable

1/2013

Mission Statement

The Accounts Receivables Department is responsible for timely collection of unpaid freight charges for transportation

services provided.

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

Department Structure

• 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

Your Responsibilities

Rate Confirmation Sheet• WRITTEN LOAD CONFIRMATION FROM YOUR

CUSTOMER AGREEING TO A SPECIFIC RATE

• What else could be included??

o Palletso Loading/Unloadingo TONU & Deadheado Detention & Layovero Special Equipmento Permits & Escortso Exclusive Useo Expedited Service/Team Serviceo Stop Offs/Out of Route Mileso Per Diem

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

Broker Confirmation Sheet

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!!!!!!!!

Customer Requirements

WHAT IS IT?ANY AMOUNT BILLED OVER THE CREDIT LIMIT OR ANY AMOUNT BILLED TO A CUSTOMER WITH NO CREDITWHY 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 Risk

• CAN AN AGENT BE CHARGED BACK FOR LOADS COVERED UNDER A CREDIT LINE?

• YES!!!!!• WHY????o Agent Billing Mistakes (I.E. billing wrong customer; missing

customer requirements)o Unable to Provide Rate Confirmation Sheeto Unable to Meet Terms on Signed Rate Confirmation Sheet (for

which customer short-pays the invoice)

Agent Deductions

DO NOT HAUL WITHOUT A CONTRACT OR SIGNED RATE

CONFIRMATION SHEET

DO NOT CONTINUE TO HAUL FOR CUSTOMERS THAT HAVE

EXCEEDED THEIR CREDIT LIMIT

DO NOT HAUL AGENT RISK

DO NOT BILL OUTSIDE OF CONTRACT TERMS

Money Savings Guidelines

The Revenue Recovery team works to make every effort in recovering monies owed to Landstar but

deemed uncollectible by the Tier 2 analyst.

What is Revenue Recovery?

• 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

RR COLLECTION METHODS?

Questions? Comments?

Phone Number: 800-241-7528

Presentations are customarily updated on a bi-annual basis (information is subject to change).