Self-Billing / Self-Invoice

Self-billing – sometimes called self-invoicing – flips the traditional freight billing model. Instead of the carrier submitting an invoice that the shipper then audits, the shipper calculates what's owed based on the shipment data in their system – origin, destination, weight, class, contracted rate – and issues payment proactively. The carrier receives payment with a detailed remittance showing how the amount was calculated.

The appeal of self-billing is control and speed. The shipper already knows the tendered rate and the shipment details, so they have everything needed to calculate the correct charge. By generating the invoice themselves, they eliminate the lag time waiting for carrier billing, avoid the back-and-forth of disputing errors on carrier-generated invoices, and maintain a clean, consistent audit trail from day one.

Self-billing works best in stable, high-volume carrier relationships where rates are well-defined and accessorial charges are predictable. It's less practical for spot market shipments or lanes with frequent accessorials that the shipper might not have full visibility into – like detention or driver wait time that only the carrier can document. In those cases, the carrier's invoice carries information the shipper doesn't have.

Adoption of self-billing requires carrier agreement and strong data discipline on the shipper's side. The shipper's rate tables and shipment records must be accurate and up-to-date, because the carrier loses their ability to catch errors through their own invoicing process. When done well, it accelerates payment cycles and dramatically reduces billing disputes.