Use Direct Cost to Track Load Profitability

Before You Use This Article

• Access needed: this integration or feature enabled on your Load Manager account. If you do not see the option, it may not be enabled for your account.
• Use this article when: your Load Manager account has this integration or feature enabled and you are setting up or troubleshooting that connection. Company paths that commonly use this article: Freight Brokers or Dispatch Services.
• Use a different article when: you do not use this integration or feature; return to the company path that matches your current workflow: Freight Brokers, Carriers, Owner-Operators, and Trucking Companies, or Dispatch Services.

Use Direct Cost when you need to record an expense tied to a specific load that should reduce your internal profit, but should not be billed to the customer or paid to the carrier or driver.

Before you start: This feature must be enabled for your account. Applies to Freight Broker and Dispatch Service accounts.

Common examples include a lumper fee your company absorbs, a flat tire repair, a load-specific administrative cost, or a fuel cost that is not being passed through to the customer or driver.

What Direct Cost Does

A Direct Cost entry affects the load's profit calculation. It does not increase the customer invoice and does not increase the carrier or driver settlement.

Example:

• Customer rate: $2,000
• Carrier rate: $1,600
• Direct Cost: $75
• Net profit: $325 instead of $400

Turn On Direct Cost

If Direct Cost is not available on your load screen, an administrator may need to enable it first.

1. Go to Settings > Configuration Options.
2. Find the Direct Cost option near the bottom of the configuration settings.
3. Select the checkbox to turn it on.
4. Click Save.

Add a Direct Cost to a Load

1. Open the load you want to update.
2. Scroll to the Commodities and Accessorials Table.
3. Add a new row.
4. Choose the Direct Cost type from the Type list.
5. Enter a clear description of the expense.
6. Enter the cost amount.
7. Click Save.

How It Appears on the Load

After the load is saved, the Direct Cost is included in the load's internal profit calculation. It helps your team see the true margin for that load without changing the customer-facing invoice amount or the carrier/driver pay amount.

Use a clear description so anyone reviewing the load later can tell why the cost was entered.

Direct Cost vs. Accessorial Charges

Use an accessorial or commodity row when the amount should be charged to the customer, paid to the carrier or driver, or both.

Use Direct Cost when the amount is an internal cost only and should reduce profit without appearing as a customer charge or carrier/driver charge.

Direct Cost vs. Overhead

Direct Cost is entered on a specific load. Overhead is a separate customer-level or account-level setup when available. Overhead can also affect internal profitability, but it is not the same as a Direct Cost row on an individual load.

If you are not sure whether your account uses overhead, ask your administrator or contact Load Manager Support.

Reporting

Direct Cost can affect profitability and commission-related reporting because it reduces the margin for the load. Review your Sales Summary, Sales Detail, dashboard, and commission reports according to your company's workflow.

Troubleshooting

• You do not see Direct Cost: Ask an administrator to confirm the Direct Cost option is enabled in Configuration Options.
• The amount changed the invoice: Review the row type. A normal commodity or accessorial row can affect customer charges, while Direct Cost is intended for internal cost tracking.
• The profit does not look right: Review customer rate, carrier/driver rate, commodities, accessorials, direct costs, and any overhead settings that apply.
• You are unsure which type to use: Use Direct Cost only for expenses your company absorbs internally.

Related Articles

• All Loads > Commodity Type Overview
• Load Screen Overview
• How is the commission calculated?
• Reports > Dashboard Overview