Overview of how to create Driver Settlements in LoadOps
In this article
- Step 1: Configure the Driver’s Payment Terms
- Payment Per Trip
- Schedule Pay
- Schedule Deduction
- Step 2: Automatic Calculation of Driver Payment for a Load
- Step 3: Create and Finalize the Driver Settlement
- Workflow On How To Configure the Driver’s Payment Terms
- Workflow On How To Create and Finalize the Driver Settlement
Once a load is completed within LoadOps, there is two automations that occur for that load: 1) an invoice is generated and 2) settlement expenses are calculated, which are based on the the entity's associated with the loads payment terms.
We will discuss how to set up a driver’s payment terms, what occurs against the load after it is completed, and how to generate the driver settlement within this article.
Workflow On How To Configure the Driver’s Payment Terms
Please follow the link below to view the workflow on How To Configure the Driver’s Payment Terms: Driver Payment Terms
Create and Finalize the Driver Settlement
Please follow the link below to view the workflow on how to create and finalize the driver settlement: Driver Settlement
Step 1: Configure the Driver’s Payment Terms
Please note, you must be an Admin, Accountant, or Power Dispatcher to modify payment terms.
Each driver can have the same set of terms, or they can be completely different. The choice is yours. We have many options so you can match your business requirements.
There are three payment term sections that you can modify:
- Payment Per Trip
- Most common
- Examples are revenue share of a load, per mile pay, or items found against an invoice
- Schedule Payment
- Helpful if a driver is paid a certain amount per time period
- Examples are a driver’s weekly, or monthly, paycheck
- Schedule Deduction
- Used if a driver is paid a specific deduction per time period
- Examples are cell phone reimbursement, child support, insurance, etc.
You can add as many line items to these sections as needed and LoadOps will use them to calculate the settlement for your driver.
To add a component to any of these sections, click the Plus Icon within that particular section. A popup window will appear, which will allow you to configure and add your line item
For example, let’s add Revenue Share within the Payment Per Trip section:
- Go to the Payment Per Trip section, then click Plus Icon
- Click the Pay Type field and select Revenue Share
- Modify the Rate field and any other fields as needed
Payment Per Trip
Here are the pay types explained.
|Additional stop %||The driver gets paid a percentage share of the additional stop charge on the load|
|Additional stop rate||The driver gets paid based on the additional stops done on the load|
|Detention %||The driver gets paid a percentage share of the detention charge on the load|
|Detention rate||The driver gets paid a detention charge per hour|
|Fuel surcharge||The driver gets paid a percentage share of the fuel surcharge on the load|
|Per duty hour||The driver gets paid per hour for any duty time spent|
|Per empty mile||The driver gets paid based on the empty miles he has driven on the load|
|Per loaded mile||The driver gets paid based on the loaded miles he has driven on the load|
|Per total mile||The driver gets paid based on the total miles he has driven on the load|
|Revenue share||The driver gets paid a percentage share of the load linehaul revenue|
This is used when you need to pay a specific amount on a weekly, biweekly, monthly, or annual basis. To add a line item, click Plus within this section.
Based on your configuration, LoadOps will automatically create the scheduled payment and include it in the pending driver settlement page (explained in Step 3).
This is used when you need to deduct a specific amount from the driver’s pay on a weekly, biweekly, monthly, or annual basis. For example, payment of a lease, insurance, mobile phone, etc.
You can configure these scheduled deductions for your driver by clicking Plus icon within this section.
Based on your configuration, LoadOps will automatically create the scheduled deduction and include it in the pending driver settlement page
Here is an example of a $200 weekly insurance scheduled deduction, that occurs each Monday, starting on 12/26/2022
Learn more about how we automatically calculate a driver’s payment for a load in Step 2.
Step 2: Automatic Calculation of Driver Payment for a Load
Once the load is completed, LoadOps automatically calculates the load settlement expense for the driver based on the configurations in Step 1.
Follow these steps to verify the settlement expense for a given load:
Go to Loads ➡️ select a load ➡️ click the Financials tab and under Trip-1, you can find the Driver Settlement Expenses.
You can always modify the settlement expenses for a load by clicking on the driver and editing any existing pay items or clicking on Add Line Item and adding a new expense item for the driver
You can also modify the invoice line items for the load. If you want to reflect any changes on the invoice after the driver settlement expenses have been calculated, click the Recalculate icon as shown below. This will pull in any new data and recalculate the expenses section for you.
Note: If there are no expenses within this section, it may be because the driver does not have any Payment Terms set up yet. If this is the case, add the Payment Terms for the driver, then go back into the load and click the Recalculate icon. This will pull in the configurations as discussed in Step 1.
To add driver deductions and payments for expenses like tolls, food, etc., click on Add Line Item and select the appropriate pay item as shown below.
Note: You can modify the automatically calculated expenses, or add new expenses, using the Add Line Item option under Settlement Expenses. Clicking on the Recalculate icon will erase your modifications and recalculate your expenses based on the configurations in Step 1.
Step 3: Create and Finalize the Driver Settlement
When you are ready to create a driver settlement, begin by following the steps below:
Click on Finance from the left side of the navigation bar ➡️ Settlements, click on the type, and select Driver from the dropdown.
Click on the Driver Name that will take you to the pending payments for the selected drivers
As shown in the below image.
Add any additional pending reimbursements or deductions for your driver by clicking Plus Item under the Other Payments as shown in the below Image-10 and Image-11
Select the Trips and any pending reimbursements and deductions for the settlement, then click Create New Settlement at the Bottom right of the page.
Select the start and end periods of the settlement and click Create to complete the settlement.
Your settlement will now appear as In Review within the web app, as well as within the driver’s mobile app for them to review.
From here, you have the option to preview, download, or email the settlement to your driver. Please note, once it is created here, the settlement will automatically appear within the driver’s mobile app under the Payments section.
You can also add more items from Pending Payments (the previous screen before this one) or remove specific line items as needed as shown in Image 14 and Image 15
Once the payment to the driver is made, then click on Close Settlement at the Bottom right to close the settlement.
Note: you can find the closed settlements under the Closed section from Settlements.