A lot companies set up deals with their fuel vendors through what is known as “direct billing”. With direct billing you are paying a certain vendor directly at the end of the month or biweekly instead of through your fuel card provider. The benefits of this can be a couple of things such as:
- Setting up discounts with your vendor
- Bypassing transaction fees and other charges
- Avoiding third party
If there are any negatives to direct billing it would be the confusion it may create. I’ve noticed with some of my clients they get confused between their direct billing vendors and their other vendors who they pay through the card provider. With confusion increases the possibilities of mistakes. Something I’ve come across with a client is the AP department paying the incorrect amount on the invoices. There usually is a gross amount and then the net amount on invoices. The gross amount would be what anyone would pay at their site that day. The net amount would be that amount minus whatever discounts you have agreed upon. Without knowing anything about your fuel program your AP department could be posting the gross amount and missing out on the discounts that have been created for your fleet.
Who’s checking your invoices? Call Sokolis Group at 267-482-6155 in order to have our fuel management team help manage your fuel.