UPS implemented an Audit Fee for Shipping Charge Corrections on June 4th, 2018.
What Does the UPS Audit Fee Cost?
This adjustment is applied when the average shipping charge correction exceeds $2.00 and is billed at $1.00 per shipment affected or 6% of the total shipping charge corrections, whichever is greater.
It used to be if the average shipping charge correction for all packages was over $5.00, but has since changed to $2.00 in October 2018.
To see if you are being billed an Audit Fee, login to UPS Billing Center and click on Invoice Tab, click a highlighted Invoice Number and scroll down to click the link Adjustments.
UPS Audit Fee EXAMPLE:
UPS Billing Center: Invoice > Invoice Summary > Adjustments section
$1,548.58 / 516 = $3.00
6% = $92.91 So, $516.00 was charged
Why Does UPS Charge an Audit Fee?
UPS has the right to weigh and measure any package that is handled and delivered. If they find any discrepancy they implement a fee outlined within the UPS Rate and Service Guide such as Additional Handling, Over Maximum, Large Package Surcharge, and DIM Weight Adjustment resulting in a change from what was stated as original weight and dimensions by the shipper.
Given the technology and resources available today, UPS is forcing shippers to send packages that have been accurately weighed and measured for correct dimensions.
How Can You Reduce or Eliminate the UPS Audit Fee
You can talk to your UPS Account Executive about getting an increase from $2.00 on average to $5.00 and/or a discount off the per shipment charge of $1.00 and the percentage fee of 6%.
Correcting these charges can be done by weighing and measuring all shipments to insure they go out with proper weight and dimensions so UPS does not have to apply a correction or additional package fees. Insure that all your packages are uploaded and accurate within your shipping software and label printing equipment.
How Can I Get Started?
Working with a reputable logistics auditing company such as Ship Watchers will provide you with insight to your packages to determine which are being charged an Audit Fee so you can work internally to correct the weight and dimensions on future packages either by entering correct information or looking at your packaging to see if there is room to reduce size and weight.
In addition to getting this valuable information to eliminate future UPS Audit Fees, you will have access to other cost savings insight through working with Ship Watchers through our transportation analytics, contract evaluation, and on-going UPS Audit Process.
Ship Watchers is a logistics auditing company that keeps carriers compliant on rates, surcharges, incentives, and incorrect charges found within carrier invoices.
Want to stay on top of carrier increases, rate changes, and benchmark studies while insuring that your invoices are free from errors and incorrect charges? Give us a shout to learn more at oncall@shipwatchers.com or by calling us at 800.550.7217 ext 874.
No term agreements, no additional effort, and no additional fees... Just a small percentage of the savings we bring to your carrier accounts directly through our auditing process.
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