How do I check whether a pricing deduction is accurate?

Compare the PO cost (EDI 850, from the retailer) against your invoiced cost (EDI 810, from you), confirm carton versus unit pricing, then confirm the price change's effective date.

Is a cost-difference deduction disputable?

Yes, when your invoiced cost matches the retailer's PO cost. It generally holds up when the PO cost genuinely differs. Routing varies: Macy's cost-difference code goes to its merchant, not a standard dispute form.

How is a price-difference deduction different from an allowance or markdown deduction?

A price difference compares two costs on one transaction, PO versus invoice. An allowance or markdown is a separate, negotiated term outside that transaction; see the allowance and markdown deductions guide.

Pricing and cost-difference deductions

Pricing and Cost-Difference Deductions

What a pricing or cost-difference deduction is, how to verify it against your PO and invoice, and when it holds up to dispute.

What is a pricing or cost-difference deduction?

A pricing or cost-difference deduction is what a retailer takes when the cost it pays doesn't match what you invoiced. It pays what it believes is correct and deducts the rest. The retailer pays and deducts; you're the one who sent the invoice. Burlington, Bealls and Macy's each name it differently:

Retailer, how it names the mechanism, and source.
Retailer	How it names the mechanism	Source
Burlington	A DMC debit: price difference, discount, or substitution	Burlington Domestic Vendor Partnership Manual (May 2026)
Bealls	Code 903: a cost difference on the invoice, compared to the PO	Bealls Inc. Chargeback Policy
Macy's	Code 501, DM-COSTDIF	Macy's Vendor Standards (2023)

Burlington: a DMC debit, price difference, discount, or substitution (Burlington Domestic Vendor Partnership Manual). Bealls: code 903, a cost difference on the invoice, compared to the PO (Bealls Inc. Chargeback Policy). Macy's: code 501, DM-COSTDIF (Macy's Vendor Standards).

How to check a pricing deduction against your own records

Compare the retailer's purchase order cost (EDI 850, sent by the retailer) against your invoiced cost (EDI 810, sent by you, on which the retailer then pays or deducts). Confirm whether pricing runs at the carton level or the unit level first, since the same dollar gap can be valid on one basis and wrong on the other. Then confirm when any negotiated price change took effect.

Check and what it tells you.
Check	What it tells you
PO cost (EDI 850, sent by the retailer)	The cost the retailer actually agreed to pay when it placed the order
Invoiced cost (EDI 810, sent by you)	The cost you billed; a mismatch here is the whole basis of the deduction
Carton cost vs unit cost	The same dollar difference can be valid on one pricing basis and wrong on the other
Price-change effective date	Which negotiated cost applied on the date the goods shipped

PO cost (EDI 850, sent by the retailer): the cost the retailer actually agreed to pay when it placed the order. Invoiced cost (EDI 810, sent by you): the cost you billed; a mismatch here is the whole basis of the deduction. Carton cost vs unit cost: the same dollar difference can be valid on one pricing basis and wrong on the other. Price-change effective date: which negotiated cost applied on the date the goods shipped.

When a pricing deduction is disputable, and what is valid

A pricing deduction is disputable when your invoiced cost actually matches the retailer's own PO cost: there's no real difference to deduct. It generally holds up when the PO cost genuinely differs from what you invoiced. Confirm each retailer's own channel before filing, since Macy's code 501 routes automatically to the Macy's merchant, per its own Vendor Standards, rather than to a standard dispute form.

Likely disputable, and likely valid or routed elsewhere.
Likely disputable	Likely valid or routed elsewhere
Your invoiced cost matches the retailer's own PO cost	The retailer's PO cost genuinely differs from what you invoiced
Bealls code 903, invoiced cost matches PO cost	Macy's code 501, cost difference: the response sits with the retailer's own merchant, not a standard dispute form
No documented price change was in effect on the shipment date claimed	A written, dated price change was in effect before that shipment

Likely disputable: your invoiced cost matches the retailer's own PO cost; Bealls code 903, invoiced cost matches PO cost; no documented price change was in effect on the shipment date claimed. Likely valid or routed elsewhere: the retailer's PO cost genuinely differs from what you invoiced; Macy's code 501, cost difference (the response sits with the retailer's own merchant, not a standard dispute form); a written, dated price change was in effect before that shipment.

What to attach when disputing a pricing deduction

At minimum, attach the purchase order (EDI 850) showing the cost the retailer agreed to, and the invoice (EDI 810) showing the cost you billed. Ross pairs a pricing dispute with the Invoice Adjustment Notification (IAN) it issued, plus a copy of the PO; check Ross's current vendor terms for the filing window, since this page doesn't state one. For Macy's replenishment vendors, Macy's Vendor Standards call for pricing changes to be communicated in writing at least two months before the effective date; attach that written notice.

Purchase order (EDI 850, agreed cost)
Invoice (EDI 810, billed cost)
The retailer's own pricing notice or code (Burlington's DMC, Bealls 903, Ross's IAN, Macy's 501)
Any written price-change notice and its effective date, when one exists

Purchase order (EDI 850, agreed cost), then invoice (EDI 810, billed cost), then the retailer's own pricing notice or code (Burlington's DMC, Bealls 903, Ross's IAN, Macy's 501), then any written price-change notice and its effective date, when one exists.

Allowances are a separate, negotiated mechanism outside this comparison; see allowance and markdown deductions. For filing mechanics, see how to dispute a retailer deduction and the proof and documentation checklist. Retailer detail: Burlington, Bealls, Macy's, Ross. Definitions: EDI 850, EDI 810. Full list: /codes.

Roy matches each deduction to the documents that answer it and prepares the dispute for review. Want to know where your own pricing deductions stand? Get a free deduction assessment.

Questions

Frequently asked questions

What is a pricing or cost-difference deduction?: A deduction taken when the cost a retailer pays doesn't match what you invoiced. The retailer pays and deducts; you're the one who sent the invoice.
How do I check whether a pricing deduction is accurate?: Compare the PO cost (EDI 850, from the retailer) against your invoiced cost (EDI 810, from you), confirm carton versus unit pricing, then confirm the price change's effective date.
Is a cost-difference deduction disputable?: Yes, when your invoiced cost matches the retailer's PO cost. It generally holds up when the PO cost genuinely differs. Routing varies: Macy's cost-difference code goes to its merchant, not a standard dispute form.
How is a price-difference deduction different from an allowance or markdown deduction?: A price difference compares two costs on one transaction, PO versus invoice. An allowance or markdown is a separate, negotiated term outside that transaction; see the allowance and markdown deductions guide.

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