Shiprocket is India’s No 1 shipping aggregator. It provides shipping solutions to companies at the click of a few buttons. Its facilities the delivery of products easily nationwide by connecting over 17 courier partners to the company. But the company doesn’t need to directly deal with multiple courier partners, Shiprocket takes care of that for the companies. Companies use Shiprocket because they can process bulk orders and can track their shipments too. Companies can turn their delivery process hassle free by opting for Shiprocket. As it is reliable, efficient and comparatively cost effective.
However, when companies use an aggregator for delivery the aggregator usually charges a fee on each delivery. It is difficult to say whether the fees charged on each delivery are correct or if the amount is undercharged or overcharged. Especially if bulk deliveries are being processed then the amount overcharged might be huge. So, companies need to verify the fee amount charged on orders.
Here, Cointab’s software can be a great helping hand in your business. As the software checks if the fee amount is correctly charged by doing the necessary calculations for you. It verifies the necessary aspects required for fee calculation. Cointab does this by integrating the Invoice, Pin Zone report, SKU report and the Rate card. Finally, after verifying the amounts and calculating it produces the resultant output in the form of a table.
Required Reports for Shiprocket Invoice Verification Process
Pin Zone Report
It is a record of the pin codes and respective zone of all deliveries.
SKU Report
The weight, dimensions and volumetric weight of each product delivery are recorded in this report.
Rate Card
All the rates and their applicable dates are shown in this report
Shiprocket Invoice
The order ID, weight applied by Shiprocket, Billing zone, Product type which could be forward or RTO, Applied Forward slab, Billing Pincode and the amount charged is in this report.
INVOICE VERIFICATION
The verifications process starts with checking if the basis values i.e. rate, zone, and weight of every product delivery are correct to calculate the fee charged. So let’s understand each of the basis values.
Weight
- To calculate and check the weight the Software uses the data dimensions and the gross weight is mentioned in the SKU report.
- When dimensions are not mentioned, software directly considers gross weight as the expected weight. If dimensions are mentioned then the “Length x Width x Height” formula is used to calculate the volumetric weight.
- The volumetric weight is then divided by the divisor that is usually mentioned in the rate card as 4000 and if not mentioned then we use 5000 as the value for the divisor. This way we arrive at the final weight
- To get the final slab value we round off the final weight.
Zone
- The geographical locations are the zones, the billing pin code mentioned in the Pincode master report is considered the expected zone by the software which the software then uses to verify against the Shiprocket invoice.
- The fees are charged differently for different zone categories i.e A, B and C etc depending on the location hence it is important to verify if the zone used in the Shiprocket invoice is right.
Rate Card
- The rate card consists of the rate charged on each delivery based on the zone and the weight of each product delivery.
- Columns mention rates for all types of deliveries i.e., Forward or RTO
- The software then verifies the “courier”, “zone”, “fwd_wt_fixed” (weight limit on which fixed charge is levied), and “divisor” columns with the Shiprocket invoice to see if the right values are used.
- The start and end dates are the periods between which a rate is applicable, so the software has to verify that delivery falls in this between those specified days.
Charges
Expected forward charges:
Once the final slab is calculated we cross-check it with the “fwd_wt_fixed” column as that is the weight limit on which a certain rate will be charged as shown in the “fwd_fixed” column. The product weight should hence be less or equal to the fwd_wt_fixed which is also equal to the “fwd_wt”. If the product weight is not equal to or lesser than that column that product has excess weight on which a different rate is charged which is shown in the “fwd” column. The formula to calculate the expected forward charge is given below.
Expected_fwd_chg = fwd_fixed + (extra_weight) x fwd
Expected RTO charges:
Once the final slab is calculated we cross-check it with the “rto_wt_fixed” column as that is the weight limit on which a certain rate will be charged as shown in the “rto_wt” column. If the product weight is not equal to or lesser than that column, then that product has excess weight on which a different rate is charged which is shown in the “rto” column. The formula to calculate the expected RTO charge is given below.
Expected_rto_chg = rto_fixed + (extra_weight) x rto
Expected COD charges:
The “cod_fixed” is the rate fixed for COD orders or “cod_rate” % of “item_price can be charged depending on which is higher.
Expected GST:
The GST % is charged on that value arrived at by adding the expected forward charge, the expected RTO charge and the expected COD charges.
Expected Final Amount:
The value is arrived at by adding the expected forward charge, the expected RTO charge and the expected COD charges charge and the expected GST is the final amount.
RESULT
The output below is generated by Cointab’s software after verifying the zone, weight and rate of the product deliveries. The output is created in a way that can be simply understood and analysed by the company’s finance teams.
Order Management System
Found in Unicommerce
Here the orders found in both the Shiprocket invoice and the OMS report are shown. OMS report records the number of order deliveries and their details which let us know the weight of the product which is used by the software to verify the weight.
Not Found in Unicommerce
Here the orders found in the Shiprocket invoice but not in the OMS report are shown. OMS report records the number of order deliveries and their details. It lets us know the weight of the product which is used by the software to verify the weight. Since orders are not found in the OMS report, weight cannot be verified.
Pin Code
Found in Pincode Master
Here the order deliveries found in the Shiprocket invoice and the Pincode Master report are displayed. Since Pincode is found in both reports it can be verified by the software as charges on deliveries are zone-wise.
Not Found in Pincode Master
Here the order deliveries found in the Shiprocket invoice but not in the Pincode Master report are displayed here. Since Pincode is not found in Pincode reports it cannot be verified by the software. It gets highlighted as Pincode is needed to know the zone as charges are applicable zone-wise.
Rate Card
Found in Rate Card
Shiprocket provides a rate card consisting of all charges applicable and orders that are found in it are displayed here. Since the rates are known for these orders, they can be verified by the software and used for further calculations.
Not Found in Rate Card
Shiprocket provides a rate card consisting of all charges applicable and orders that are found in it are displayed here. Since the rates are unknown for these orders they cannot be verified by the software or used for further calculations.
Fee Verification using OMS – Shiprocket
Correctly Charged
The software verifies the basis elements with the OMS and Shiprocket report and all of them i.e., the zone, weight and the rate are seen to be right and it is ultimately seen that amount is charged right too.
Zone Match Weight Match – Overcharged
The software verifies the basis elements with the OMS and Shiprocket report. The orders for which the zone and weight are right but the rate is wrong due to which the fee is overcharged is shown here.
Zone Match Weight Match – Undercharged
The OMS report and the Shiprocket report are used to verify the basis elements. After which it is seen that zone and weight are right for certain order deliveries but the rate given is wrong which in turn causes an undercharge.
Zone Mismatch Weight Match – Overcharged
The OMS report and the Shiprocket report are used to verify the basis elements after which it is seen that the weight and rate are right for certain order deliveries but the zone given is wrong which in turn causes the amount charged to be more than the amount supposed to be charged.
Zone Mismatch Weight Match – Undercharged
The software verifies the basis elements with the OMS and Shiprocket report and the orders where the weight and rate are right but the zone given is wrong which in turn causes the amount charged to be less than the amount supposed to be charged are shown here.
Zone Match Weight Mismatch – Overcharged
The software verifies the basis elements with the OMS and Shiprocket report and the orders where the zone and rate are right but the weight given is wrong due to which fee charged is more than the expected amount.
Zone Match Weight Mismatch – Undercharged
The OMS report and the Shiprocket report are used to verify the basis elements after which it is seen that the zone and rate are right for these order deliveries but the weight given is wrong due to which the fee charged is less than the expected amount.
Zone Mismatch Weight Mismatch – Overcharged
The OMS report and the Shiprocket report are used to verify the basis elements after which it is seen that only the rate is right for these order deliveries but the zone and weight given are wrong due to which the fee charged is more than the expected amount.
Zone Mismatch Weight Mismatch – Undercharged
The OMS report and the Shiprocket report are used to verify the basis elements after which it is seen that only the rate is right for these order deliveries but the zone and weight given are wrong due to which the fee charged is less than the expected amount.
Invoice Verification using weight given by Shiprocket
Correctly Charged (Shiprocket Weight)
Here weight given by Shiprocket is used so the software verifies the other elements and the zone and rate are found to be right too, so the fee amount is ultimately correctly charged.
Zone Match – Overcharged (Shiprocket Weight)
Here weight given by Shiprocket is used so the software verifies the other elements. After which the zone is found to be right but the rate given is wrong which leads to overcharging of the fee.
Zone Match – Undercharged (Shiprocket Weight)
Since we are using the weight given by Shiprocket the software verifies the other elements and the zone is found to be right but the rate given is wrong which leads to undercharging of the fee.
Zone Mismatch – Overcharged (Shiprocket Weight)
Since we are using the weight given by Shiprocket the software verifies the other elements and the rate right but the zone given is wrong which causes the fee to be more than the amount supposed to be charged
Zone Mismatch – Overcharged (Shiprocket Weight)
Since we are using the weight given by Shiprocket the software verifies the other elements and the rate right but the zone given is wrong which causes the fee to be less than the amount supposed to be charged.
All Charges
Total Forward Charges
The total charges on all the forward order deliveries are verified here by the software. The calculations of the expected forward charge and how we arrive at the figure is mentioned above.
Total COD Charges
The total fees charged on all the cash on delivery orders are verified and presented here. The calculations to arrive at the expected COD charge is as discussed above.
Total RTO Charges
The total fees charged on all the orders delivered and then returned are verified by the software and displayed here. The calculations to arrive at the expected RTO rate are as discussed above.
Cointab generates the output, as shown above. The red line items can be rectified if the value from the company end is wrong or not given. As then the company can be contacted for the correct values. After that as and when information is received it can be verified and put in its respective row. In case the issue is from Shiprocket then an invoice can be sent to Shiprocket.
Hence, if your company wants to rid itself of the task of fee amount verifications, checking each and every value and calculating the overcharged or undercharged amount then Cointab’s software will be a great asset to your team!
Click on the below link to View more with Shiprocket
Shiprocket Courier COD Amount Verification
