Welcome to Article 4 in the Organization Master Data Series, where we focus on one of the most deceptively simple—but operationally powerful—fields in CargoWise: the Account Classification.
You’ve seen the dropdown:
- Customer
- Vendor
- Carrier
- Agent
- …and more.
But this single field determines how CargoWise treats each organization across finance, operations, reporting, compliance, and integrations. When the classification is incorrect, it can wreak havoc across your systems—and your teams.
🧾 What Are the Account Classification Types in CargoWise?
Here’s a breakdown of common classifications and what each one does:
🔹 Customer
An organization that is billed for services.
Used for:
- AR invoicing
- Customer statements
- Revenue reporting
Incorrect usage may result in failed postings or misclassification in financial reports.
🔹 Vendor
A company you pay for services (e.g., trucking, warehousing, customs).
Used for:
- Supplier invoices
- AP processing
- Vendor spend analysis
If misclassified, AP bills might not post or could be billed to the wrong GL accounts.
🔹 Carrier
An entity that physically moves freight by air, ocean, rail, or truck.
Used for:
- Routing options
- Schedule integration
- Tracking and rate visibility
Missing this flag can prevent your users from assigning carriers to shipments or pulling rates.
🔹 Agent
A logistics partner handling shipments on your behalf—often in another region or country.
Used for:
- Cost/revenue sharing
- Operational hand-offs
- Agent settlements
Incorrect use can disrupt agent accounting and shipment visibility.
🔹 Other Role-Based Flags
Such as Shipper, Consignee, Notify Party—used primarily for documentation, customs, and compliance purposes.
🧩 How to Know What Boxes to Tick
Many organizations wear multiple hats. So how do you decide what roles to assign in CargoWise?
✅ Ask: What is our relationship with this organization?
- They pay us → Tick Customer
- We pay them → Tick Vendor
- They move freight → Tick Carrier
- They represent us in another region → Tick Agent
✅ Consider how they’ll be used:
- AR Invoicing → Customer
- AP Billing → Vendor
- Routing/Scheduling → Carrier
- EDI Partner or System Integration → Network Partner
- Shipment Execution Assistance → Agent
✅ Look for role-specific system needs:
- Carrier: Routing, rates, and tracking
- Customer: Credit limits, statements, sales reports
- Vendor: Cost controls, AP matching
- Agent: Operational handoffs and inter-company workflows
💡 Pro Tip: If a company legitimately fits more than one role, you can (and should) select multiple boxes to avoid duplicating the organization.
🚨 What Happens When Classifications Go Wrong?
- ❌ Billing Failures: Trying to bill a vendor through AR? It won’t work.
- ❌ Routing Issues: A missing carrier flag blocks schedules and tracking.
- ❌ Reporting Confusion: Vendors show up in customer revenue reports.
- ❌ Duplicated Records: Users create a second record because the first was misclassified.
- ❌ Compliance Risk: Improper classification can disrupt denied party screening or regulatory logic.
📊 Classifications Drive System Behavior
These fields are not just labels—they trigger critical logic throughout CargoWise:
- Document templates
- Billing workflows
- Routing options
- Permissions
- Partner integrations
- Compliance validations
That’s why governance matters.
🔐 Who Should Be Allowed to Change Classifications?
Not everyone should have access to change classifications. Without governance, users may:
- Default everything to “Customer”
- Edit classification mid-shipment
- Misclassify based on short-term usage instead of long-term relationship
Recommended Controls:
- Restrict edits to trained users or data stewards
- Require documentation or justification for changes
- Train teams on multi-class usage
- Audit organization records regularly
🧠 The Takeaway
The Account Classification field may look like a simple dropdown, but it’s one of the most influential data fields in CargoWise.
It impacts:
- Billing accuracy
- Operational execution
- Financial reporting
- Denied party screening
- Workflow automation
- User confidence in the data
Get it right, and everything works better. Get it wrong, and everything breaks.
ALL2S CONSULTING LLC 