Understand Invoice Statement Document Result (ISDR) for Freight Audit

An Invoice Statement Document result (hereinafter referred to as “ISDR”) is a PDF document that contains the amount approved in a particular Invoice Statement Document (hereinafter referred to as “ISD”) and instructions on how to create an invoice, it serves as a billing instruction for carrier.

This file contains all the necessary information for issuing a valid, errorless freight invoice. An ISDR includes invoice entity name, invoice entity address, Value Added Tax (hereinafter referred to as “VAT”) number of the invoice entity, total amount to invoice, currency, reference numbers, etc.

The ultimate purpose of an ISDR is to ensure that the carrier submits a 100% correct invoice.

Other goals of the ISDR are as follows:

●       providing easy tracking of closed/non-closed billing periods;

●       speeding up the payment process;

●       decreasing the amount of incorrect final invoices and as a result the time spent for making corrections.

There are three ISDR statuses available in the Freight Rate Exchange Database (hereinafter referred to as “FRED”) system. Below you will find a detailed overview of each ISDR status:

In process status - an ISDR was created in the system, but not yet sent to the carrier/shipper due to open issues, additional clarifications, etc.

Wait for invoice status - an ISDR was sent to the carrier/shipper. A carrier must submit and provide an invoice according to the agreed procedure and requirements..

Invoice received status - an invoice for this particular ISDR was received, approved and sent to the shipper for payment. End of the audit process

If a carrier agrees with the ISDR data, an invoice should be issued immediately. If a carrier disagrees with the ISDR data (e.g. discrepancies were found), an Issue Resolution (hereinafter referred to as “IR”) process has to be initiated in the FRED system. Clarifications regarding incorrect, missing or excess costs, incorrect shipment data should all be settled via IR tool.

For more information on how to search for an ISDR please log in to FRED and navigate to the Documentation section located in the FRED top menu bar. Appendix_B_ISDR is available under User guides folder.