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Settle & Comply
Freight Settlement
Traqo Freight Settlement auto-matches every transporter invoice to its LR, indent, contract rate and proof-of-delivery — flagging only true exceptions for human review. Customers close freight books in the same cycle the shipment moves, cutting settlement TAT from 30–45 days to under 7 days and eliminating ~92% of accruals leakage across multi-currency operations.
Invoice, LR, and POD auto-matched in seconds. Disputes drop. Transporters get paid on time. Everyone wins.
₹2,400 Cr+ freight settled · 92% auto-match rate
DocumentationFreight Settlement→
Settlement · BLR-2841/24
3-way match · Invoice ↔ LR ↔ POD
Reconciling
Invoice
LR
POD
Match
LR Number
BLR-2841/24
BLR-2841/24
BLR-2841/24
—
Amount
₹12,45,000
₹12,45,000
₹12,45,000
—
Cartons
248
248
248
—
Delivery date
12.06.26
12.06.26
12.06.26
—
Match score
0.0%
AUTO
APPROVED
Avg cycle: 8 sec per LR
₹2,400 Cr settled YTD
Before & After
Two ways to run freight settlement.
Without Traqo
Disputed · waiting
14 days openInvoiceINV-8421 · ₹48,200
LRLR-7281 · MUM→CHN
POD240 cartons · signed
3 mismatches · finance ↔ ops loop— escalated —
- —Finance team manually matches invoice ↔ LR ↔ POD
- —Transporter chases payment for weeks
- —Disputes pile up because nobody trusts the paperwork
With Freight Settlement
3-way match
matching…InvoiceINV-8421 · ₹48,200
LRLR-7281 · MUM→CHN
POD240 cartons · signed
Auto-paid · same cycle
92% no-touch- AI auto-matches invoice with LR and POD
- Mismatches surface as exceptions, not as guesswork
- Transporter gets a clear payment timeline, in writing
How it works
Three steps. From your first day.
3-way match · INV-89221 · auto
LR / Indent
TRQ-44192-21
₹46,800
POD
POD-21887-1
OK · signed
Carrier Inv
INV-89221
₹46,800
Match passed · ready to pay
cycle: indent → POD → invoice = 23 minutes
Net payable
₹46,800
Disputes auto-flagged
3.2%
DPD avg
2.4 days
Manual touches
0
1
Step 01Documents flow in
Transporter invoice arrives, LR is on file, POD is digital.
2
Step 02Auto-match runs
AI matches across 24 fields, flags discrepancies.
3
Step 03Approve or dispute
Clean matches paid in cycle. Mismatches sent back with proof.
What's inside
Everything you need. Nothing you don't.
3-way matching
Invoice + LR + POD aligned automatically.
Dispute · INV-89221
Carrier: detention 4h claimed
Shipper: GPS shows 1.5h, attached proof
resolved · ₹2,400 paid
Dispute workflow
Structured back-and-forth, not endless email chains.
Payment timeline · transporter view
POD
Apr 12
Match
Apr 14
Approve
Apr 16
Pay
Apr 25
Payment timeline
Transporters see when they'll get paid, in their portal.
Detention auto-calc
Gate-in14:18
Gate-out19:42
Hours5.4 h
Free2.0 h
Billable3.4 h
claim₹2,720
Detention & detention claims
Auto-calculated from gate-in/out and tracking data.
The number that matters
92%
of freight invoices settle without a human touching them
across customers
Trend · last 12 weeks
+412%
now
W1
W6
W12
Peak W12Avg week-on-week +14.2%
Sourced from active accounts
"We used to close freight a month late. Now it closes in the same cycle. Transporters trust us again."
Godrej Rentrust
Logistics Finance
The result
30-day → same-cycle settlement
Their morning view
92%
auto-matched · zero touch
Same-cycle payouts
Settled
₹14.2 Cr
Open
8
Pairs perfectly with
One module is good. Three is a system.
Part of
12 solutions use Freight Settlement
FAQ
Frequently asked questions about Freight Settlement
- What is freight settlement software?
- Freight settlement software automates the process of verifying, matching, and approving transporter invoices against the original freight records — the Lorry Receipt (LR) and Proof of Delivery (POD). In a manual settlement process, a finance team receives a stack of transporter invoices at month-end and must manually cross-reference each one against trip records, contracted rates, actual distances, and POD status — a process that takes weeks, generates disputes, and delays payment to carriers. Freight settlement software replaces this with an automated matching engine that processes invoices as they arrive, applies contracted rate logic, and either approves them for payment or flags specific discrepancies for human review.
- How does 3-way freight invoice matching work?
- 3-way matching in freight settlement means verifying that three documents are in agreement before approving a payment: the transporter's invoice, the Lorry Receipt (LR) confirming the shipment was made, and the Proof of Delivery (POD) confirming the goods were received. Traqo.ai's matching engine compares the invoice amount against the contracted rate for that lane and vehicle type, verifies the LR number and shipment details, confirms POD is uploaded and valid, and checks for additional charges (detention, toll, fuel surcharge) against your pre-approved charge categories. Matches that pass all checks are approved automatically. Discrepancies are routed to a structured dispute workflow — not email.
- What auto-match rate does Traqo.ai achieve in freight settlement?
- Traqo.ai achieves a 92% auto-match rate — meaning 92 out of every 100 transporter invoices are verified and approved for payment automatically without any human touching them. The remaining 8% contain discrepancies (rate difference, missing POD, disputed detention charge, incorrect distance) and are routed to a structured exception workflow where the finance team reviews only the specific mismatched fields, not the entire invoice. This compares to a typical manual settlement process where 100% of invoices require human review, and the overall settlement cycle stretches to 30–45 days past the delivery date.
- Which documents does Traqo.ai match in the settlement process?
- Traqo.ai's settlement engine matches: transporter tax invoice or debit note, Lorry Receipt (LR) or Consignment Note, digital Proof of Delivery (POD, uploaded via OCR or driver app), e-way bill record (for Indian operations), advance payment records, and any previously agreed additional charges like detention, toll, and fuel surcharge attached to the trip record. For EXIM settlements, the engine also matches against container demurrage and detention records from the EXIM module. All matched documents are stored permanently against the trip record for audit retrieval.
- How does Traqo.ai handle freight invoice disputes?
- When Traqo.ai's matching engine detects a discrepancy, it creates a structured dispute record showing exactly which fields don't match and why — rather than sending a vague rejection email to the transporter. The dispute is routed to a shared workflow where your finance team and the transporter's accounts team can both view the same data, upload supporting documents, and communicate through the platform. This eliminates the back-and-forth email chain that typically extends disputes for weeks. Each dispute has a configurable resolution SLA, and escalation rules ensure overdue disputes surface to management before they age into bad debt.
- How does Traqo.ai's settlement platform benefit transporters?
- Transporters benefit from faster payment cycles and full visibility into when they will be paid. In traditional manual settlement, transporters submit invoices and wait weeks to hear whether there are discrepancies — they have no visibility into the review process and must chase your finance team by phone. In Traqo.ai, transporters have a dedicated portal where they can see the status of every invoice, track which stage of the approval process it is in, view any disputes with the specific discrepancy reason, and upload supporting documents directly. Customers report that after deploying Traqo.ai settlement, transporter satisfaction scores improve significantly and carrier rate negotiations become more productive.
- Can Traqo.ai automatically calculate detention and demurrage claims?
- Yes. Traqo.ai calculates detention charges automatically using gate timestamp data from the Yard Management module and tracking data from the Real-time Tracking module. When a vehicle is detained at your facility beyond the agreed free-time window, the platform calculates the excess hours, applies the contracted detention rate, and either credits the transporter's invoice (if they are owed detention by you) or deducts it from the payable amount (if the detention was caused by the transporter). This eliminates months-long detention disputes that are otherwise very difficult to resolve without timestamped entry and exit records.
- How does Traqo.ai integrate with accounts payable systems for freight payments?
- Traqo.ai integrates with major ERP accounts payable modules — SAP FI, Oracle AP, and Microsoft Dynamics 365 Finance — to push approved invoice records directly into the payment workflow. When Traqo.ai's settlement engine approves an invoice (automatic match or manually approved exception), it creates a payment-ready record in your ERP's AP module with the vendor code, invoice number, amount, tax details, and cost centre coding. Your finance team processes the payment within the ERP as normal — no manual re-entry from the TMS. Payment confirmation is sent back to Traqo.ai and surfaced in the transporter portal.
Your stack →
0 of 14 modules · one platform✓ Freight Settlement active
Get started
See Freight Settlement
in your warehouse.
30-minute walkthrough on your own data. No IT team. No commitment.
Step 1 of 425%
Let's start with your company
Get Started
Talk to a freight expert.
Tell us about your fleet. We'll set up a pilot, walk you through the dashboard, and show you live tracking on your own trucks — no GPS hardware required.
- Pilot on up to 10 trucks, free for 14 days
- Live in under 5 minutes — just the driver's phone
- Direct line to our solutions team
Prefer email? Write to sales.support@traqo.io