Section 1: Load and Link:
Introduction
Load & Link: Streamlining Freight Accounting
The Load & Link feature is designed to eliminate redundant data entry by directly synchronizing AR/AP invoices with Debit/Credit Notes.
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The Goal: To save Operations (OP) significant time by removing the need to manually key in freight D/C data.
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The Efficiency: Users only need to enter data once (as AR/AP), and the system automatically handles the corresponding entries.
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Use Case: This is specifically optimized for intermediary transactions, such as collecting payments from customers or paying vendors on behalf of an overseas agent.
Definition of AR (Accounts Receivable) Types:
- Our Sales: Revenue generated from my company's own sales.
- Collect for Agent: Payments collected from customers on behalf of an Agent, where the full amount is subsequently remitted to the Agent. → D/C Note type: Credit
- Sales for Agent: Payments collected from customers on behalf of an Agent, where a portion is retained as a margin or commission, and the remaining balance is remitted to the Agent. → D/C Note type: Credit
Definition of AP (Accounts Payable) Types:
- Our Cost: Expenses or costs incurred directly by my company.
- Pay for Agent: Payments made to Vendors on behalf of an Agent, which are then reimbursed by the Agent in full. → D/C Note type: Debit
- Cost for Agent: Payments made to Vendors on behalf of an Agent, which are then recharged to the Agent with an added markup (margin or commission). → D/C Note type: Debit
How to Use the Function of Load and Link?
The Load and Link button is exclusive to the Debit/Credit Note entry page and is greyed out by default.
It is enabled only if the shipment file includes:
- AR types: “Collect for Agent” or “Sales for Agent”
- AP types: “Pay for Agent” or “Cost for Agent”
Follow the step-by-step instructions below to utilize this function:
1. Under HBL Accounting tab, click “Destination Revenue (Invoice/AR)” to create an AR (Bill to Customer); and click “Destination Cost(AP)” to create an AP (Bill to Vendor)
On the AR entry page, select the AR Type:
- Select “Collect for Agent” if you want the full amount to be shown on the Credit Note. When this type is selected, the “Agent Amount” field will not be editable.
- Or select “Sales for Agent” if you would like to retain a portion of the amount as margin or commission. When this type is selected, the “Agent Amount” field will be editable.
For this AR, we select “Collect for Agent”, for example. After saving, the Status will show “Waiting”, which means it’s waiting to be loaded and linked by D/C Note.
On the AP entry, select the AP Type:
- Select “Pay for Agent” if you want the full amount to be shown on the Debit Note. When this type is selected, the “Agent Amount” field will not be editable.
- Or select “Cost for Agent” if you would like to add markup as margin or commission on the Debit Note. When this type is selected, the “Agent Amount” field will not be editable.
For this AP, we select “Cost for Agent”, for example, and add markup amounts in the field “Agent Amount”. ( For instance, the total trucking fee charged by the vendor is $620. After adding the markup in Agent Amount, the total amount charged back to the agent becomes $750.)
2. Under the MBL account tab, click “Origin Revenue/Cost (D/C Note)” to create a D/C Note
On the D/C Note entry page, the “Agent Name” is the must-have information here, which by default will populate the Oversea Agent entered in the shipment.
When you hover the cursor on the button “Load and Link”, it will show the number of items available in AR/AP for Load and Link,e.g, “4 items from AR/AP”.
You may then choose to save it as a draft or click “Save” to issue it as an official D/C Note.
For the AP amounts, since the type is “Cost for Agent” and a markup has been entered in the Agent Amount field, the system will load the Agent Amount only during the Load and Link process. The Agent Amount, rather than the actual AP amount, will be shown on the D/C Note.
Special Notices:
1. HBL Level Linking
- AR/AP created under an HBL can be linked to the D/C Notes of that specific HBL or to the D/C Notes of the parent MBL.
- AR/AP created under an MBL can only be linked to MBL D/C Notes. They cannot be linked to HBL D/C Notes. (Note: Invoices issued to Agents are typically recorded at the MBL level.)
To ensure maximum efficiency and data integrity, follow this standard workflow:
- Entry: Create all AR/AP invoices at the HBL level.
- Agent Settlement: Issue the D/C Notes for the Overseas Agent at the MBL level.
- Synchronization: Use the Load & Link feature on the MBL's D/C Note to pull in and link all relevant HBL data in a single step.
Section 2: Match and No Match
Introduction:
The Match function ensures financial integrity across MBL and HBL, which compares AR/AP totals with DC Credit/Debit totals, to check if transactions are balanced to prevent financial losses.
The objective is to ensure the account does not incur a loss (specifically when issued a wrong amount). This is done by collecting all freight data from the MBL (including the HBL) and categorizing them to calculate profitability.
- Match: Profitable / Breakeven (No loss)
Example:
- Not Match: Loss-making
Example:
Calculation Rules
To determine the status, compare the totals of the following categories:
1. Accounts Receivable (AR) vs. Credit
- Calculation: Sum of all AR vs. Sum of all Credit, for the same freight.
- Result:
- If AR ≧ Credit → Match
- If Credit ≧ AR → Not Match
2. Accounts Payable (AP) vs. Debit
- Calculation: Sum of all AP vs. Sum of all Debit, for the same freight.
- Result:
- If Debit ≧ AP → Match
- If AP ≧ Debit → Not Match
Examples:
In the AP, the Freight Code: OCNFRT, OCEAN FREIGHT, is billed with the amount 2000
In the D/C Note, Freight Code: OCNFRT, OCEAN FREIGHT, is billed with the amount 3000; the Debit amount in total is greater than the AP amount, so it shows the green icon: Match.
However, in the D/C Note, if the Freight Code: OCNFRT, OCEAN FREIGHT, is billed with the amount 1500, the Debit amount in total is smaller than the AP amount, so it shows the red icon: No Match.
