GlossaryEN1 min readUpdated: Jun 22, 2026

Freight Audit and Payment

Freight Audit and Payment (FAP) combines invoice validation with the full downstream payment workflow in a single controlled process.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://www.inboundlogistics.com/cms/article/freight-audit-and-payment-101-everything-you-need-to-know-about-freight-bill-auditing/

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Logistics Concept

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Definition & Explanation

Freight Audit and Payment (FAP) combines invoice validation with the full downstream payment workflow in a single controlled process. Carrier invoices are checked against contracted rates, actual service records, and shipment documentation before settlement is authorised; discrepancies such as duplicate charges, incorrect dimensional weight calculations, or unjustified surcharges are flagged for resolution. By closing the loop between audit findings and payment release, FAP gives shippers clear visibility over transportation spend and strengthens accountability with carriers. It is commonly handled by specialised third-party providers or integrated modules within a transport management system (TMS). Unlike standalone freight auditing, FAP does not end at the identification of errors but governs the entire cycle through to final payment.

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Freight Audit and Payment

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