3PL Billing

What is 3PL Billing?

3PL (Third-Party Logistics) billing is the invoicing system used by third-party logistics providers to charge clients for warehousing, fulfillment and value-added services like packaging and labelling.

What is the Difference Between 3PL Billing and Standard Freight Billing?

Standard freight billing focuses on the movement of goods, while 3PL billing handles the storage, handling and movement of goods. Standard freight billing is usually simple, typically with only one basic invoice issued per trip. 3PL billing aggregates multiple service types into consolidated invoices, typically issued monthly or per transaction depending on the contract structure.

Key Components of 3PL Billing

Key components of 3PL billing include:

  • Storage fees: These are calculated based on pallet positions, cubic footage or square footage occupied.

  • Receiving and putaway charges: These are calculated based on pallet, case or units processed.

  • Order fulfillment fees: These include picking, packing and shipping labor.

  • Value-added services: These include kitting, labeling, returns processing and quality inspections.

  • Accessorial charges: These include special requests, expedited handling, reconsignment and other unforeseen costs.

  • Administrative fees: These include account management, reporting and access to specialist technology and enterprise tools.

How Warehouse Billing Software Handles 3PL Billing

Warehouse management systems use warehouse billing software to automate, capture and manage all charges.

Warehouse billing software automates billing through real-time activity tracking. As warehouse operatives complete tasks, the software:

  • Automatically logs billable activities against client-specific rate cards

  • Calculates charges based on pre-defined rules

  • Applies tiered pricing when volume thresholds are met

  • Generates detailed invoices with line-item breakdowns

When 3PLs manage multiple clients in shared warehouse spaces, the warehouse billing software maintains separate rate structures, tracks inventory by ownership and ensures accurate cost allocation, even when resources are shared across customers.

Warehouse billing software integrates with a variety of different systems. It integrates with accounting systems to streamline the month-end close process and client portals so customers can view charges before invoices are issued.