Overview of how to create Tractor Settlements in LoadOps
In this article
Overview
Once a load is completed within LoadOps, there is two automations that occurs for that load: 1) an invoice is generated and 2) related settlement expenses are calculated, which are based on the entity's associated with the loads payment terms.
We will discuss how to set up a tractor's payment terms, what occurs on the load after it is completed, and how to generate the tractor settlement within this article.
Workflow On How To Create and Finalize the Tractor Settlement
Please follow the link below to view the workflow on How To Create and Finalize the Tractor Settlement: Tractor Settlement
Step 1: Configure the Tractor's Payment Terms
Please note, that you must be an Admin, Accountant, or Power Dispatcher to modify payment terms.
Each tractor 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.
Go to Operations ➡️ Equipment ➡️ Select the tractor and click on the Payment Terms.
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 as line items on 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
- 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 Tractor.
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 Load Rate section:
- Go to the Load Rate section, then click Add Line Item
- Click the Pay Type field and select Revenue Share
- Modify the Rate field and any other fields as needed
- Add!
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The new line item should appear under the Payment Per Trip section as shown below.
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Go ahead and customize the Payment Terms for this tractor and all tractors as needed. Going forward, LoadOps will automatically calculate the tractor payment of a load whenever a load is completed for that tractor.
Please find descriptions of each payment term section below.
Payment Per Trip
Here are the pay types explained.
|
Additional stop % |
Payment is based on a percentage share of the additional stop charge on the load |
|
Additional stop rate |
Payment is based on the additional stops done on the load |
|
Detention % |
Payment is based on a percentage share of the detention charge on the load |
|
Detention rate |
Payment is based on a detention charge per hour |
|
Flat Rate |
Fixed payment on each load |
|
Fuel surcharge |
Payment is based on a percentage share of the fuel surcharge on the load |
|
Per duty hour |
Per hour pay for any duty time spent |
|
Per empty mile |
Payment is based on the empty miles driven on the load |
|
Per loaded mile |
Per-mile pay for any loaded runs performed |
|
Per total mile |
Payment is based on the total miles driven on the load |
|
Revenue share |
Payment based on 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
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Step 2: Automatic Calculation of Tractor Payment for a Load
Once the load is completed, LoadOps automatically calculates the load settlement expense for the tractor 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 Tractor Settlement Expenses.
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You can always modify the settlement expenses for a load by clicking on the Tractor and editing any existing pay items or clicking on Add Line Item and adding a new expense item for the driver
Note: If there are no expenses within this section, it may be because the tractor does not have any Payment Terms set up yet. If this is the case, add the Payment Terms for the tractor, then go back into the load and click the Recalculate icon. This will pull in the configurations as discussed in Step 1.
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: Use the "Share with Driver" feature as shown above to share the tractor settlement expenses info with the driver
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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.
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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 Tractor 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 Tractor from the dropdown.
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Click on the Tractor Name that will take you to the pending payments for the selected drivers
As shown in the below image.
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Add any additional pending reimbursements or deductions for your Tractor by clicking Plus Item under the Other Payments as shown in the below Image
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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.
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Your settlement will now appear as In Review within the web app and from here, you have the option to preview, download, or email the settlement to your tractor owner
Once the payment to the tractor owner is made, then click on Finalize at the Bottom right to close the settlement.
Note: you can find the closed settlements under the Closed section from Settlements.