How to Dispute a Retailer Deduction
Start with the remittance line: read the deduction code and amount, then match it to the invoice it was taken against and the purchase order behind that invoice. The code names the deduction type. The invoice and PO show whether the retailer's claim matches what you actually shipped and billed. Don't recognize a code or term? Check the deduction code library and the glossary.
How do you identify a retailer deduction before you can dispute it?
Start with the remittance line: read the deduction code and amount, then match it to the invoice it was taken against and the purchase order behind that invoice. The code names the deduction type. The invoice and PO show whether the retailer's claim matches what you actually shipped and billed. Don't recognize a code or term? Check the deduction code library and the glossary.
How do you classify the deduction? (shortage, compliance, pricing, allowance)
Every deduction code sorts into one of four categories: shortage, compliance, pricing, or allowance. Here's where each one points:
Read more: Shortage deduction disputes, Deduction code library, Dispute letter template, Allowance and markdown deductions.
Is the deduction valid, or is it disputable?
A deduction is disputable when your own records (invoice, PO, bill of lading, proof of delivery, or the program's timeline) contradict the retailer's claim, and valid when they confirm it. That's the whole test: does your evidence agree with the retailer's claim or not. Same comparison every time, no matter the retailer or the code.
Which documents answer each type of deduction?
Each category is answered by a specific document, not a generic cover letter. Here's the lookup:
These match the evidence rules already published on the shortage guide and the dispute letter template; use those for the full requirements rather than re-deriving them here.
Roy matches each deduction to the documents that answer it and prepares the dispute for review.
When and where do you file, before the window closes?
Every retailer sets its own filing window and its own starting event, so check the current vendor manual before filing. Burlington's manual (May 2026, p.25) gives shortage disputes six months from the check remittance date, filed by email to Vendor Relations with the Shortage Dispute Form. Macy's 2023 Vendor Standards (p.28) gives 60 days from the deduction date, filed through macysnet AP Forms.
This is also when to confirm you're dealing with a retailer deduction and not a card-network chargeback; see retailer deductions vs. credit card chargebacks if you're not sure which process applies.
What do you do after filing, including if the retailer denies it?
After filing, confirm the retailer received it and track the case against their published response timeline, if they have one. If they deny it, review the denial against your original evidence. Still contradicts the claim, and the window's still open? Re-file with whatever the first submission lacked. Otherwise, accept the deduction.
Frequently asked questions
What happens after you file a retailer deduction dispute?
- The retailer reviews the filing against your evidence, then reverses the deduction, upholds it, or asks for more documentation. Track it against the retailer's published response timeline if one exists. If not, follow up in writing after a reasonable interval.
What if a retailer denies my dispute?
- Review the denial against the evidence you originally submitted. If your records still contradict the claim and the window's still open, re-file with whatever was missing the first time. If the window's closed, or your own records confirm the deduction, accept it.
Does every retailer use the same dispute deadline?
- No. Each retailer sets its own filing window and starting event in its own vendor manual, some count from the check remittance date, others from the deduction date. Always check the current vendor manual for that retailer; don't assume one retailer's window applies to another.
Where do I send a retailer deduction dispute?
- Through the channel that retailer's own vendor manual specifies: a dedicated email address, an AP forms portal, or a vendor portal upload. There's no universal dispute address. The right channel is always the one published in that retailer's current vendor guide.
Not sure where your deductions stand?
Get a quick assessment of your open deductions.