What is a Parcel Audit

This YouTube video by Audiopedia discusses the definition of a parcel audit.

What is it?
A parcel audit, also known as a small package or small parcel audit, involves a review of shipping invoices and charges to determine billing inaccuracies.


Video Source

This is regularly performed by shipping companies by FedEx or UPS.

How it’s Done?
Since it’s a time-consuming process, this type of audit is normally handled by an outsourced organization. They tend to execute digital solutions to review invoices that are hundreds of pages long. As these programs work quickly they sometimes miss information. In turn, a company is charged incorrectly by the delivery carrier.

Among the issues are inappropriate charges, duplicate costs, incorrect discount amounts, and phantom accessorial charges. Due to this, carriers provide online forms and other means for customers to report issues.

A parcel audit also takes place when packages are constantly delivered outside of scheduled times. Yet, the carrier overbills them or the services. If the carrier finds that the issue is on their end, then they credit the customer.

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