KeHE deduction type
Manufacturer chargebacks (MCB)
Promotional discounts KeHE extends to retailers and passes back to you — plus a processing fee that has been 8% of the MCB amount (minimum $65 per DC).
OverDeduct Deduction Recovery Team · Deduction recovery specialists working with emerging & mid-market CPG brands
Last reviewed: August 4, 2026
Educational content — not legal, tax, or accounting advice. Verify deadlines and fee details against your current distributor agreement before disputing.
What is a manufacturer chargebacks (mcb)?
A manufacturer chargeback (MCB) is a discount KeHE gives one of its retailer partners and then bills back to you, the manufacturer. On top of the passed-through discount, KeHE applies a processing fee.
Extra Performance (EP) fees are a related promotional charge for programs and placements KeHE runs on your behalf, invoiced on a separate EP statement.
Why does it happen?
- You approved a promotion or MCB program and the discount is being passed through as agreed.
- A deal was keyed incorrectly, applied to the wrong SKUs or dates, or billed twice.
- An MCB is claimed with no matching authorization on file — an unauthorized deduction.
Is it disputable?
Partly. Valid, authorized MCBs are legitimate — they're a negotiated cost of doing promotions through KeHE. But a meaningful share are duplicates, applied outside the agreed window, or claimed without authorization — and those are recoverable. The key is matching every MCB to an approved deal with SKUs, dates, and rates on file.
KeHE specifics: fees and timing
KeHE's MCB processing fee has been 8% of the MCB amount (quantity sold × MCB amount × 8%), with a minimum of about $65 per distribution center, processed on a bi-weekly cycle — up from 5% in KeHE's 2015 vendor policy. Confirm the current rate in your KeHE agreement, since fee schedules are private.
Backup you'll need to win it
- The signed promotion / MCB authorization with SKUs, dates and rates
- Your deal sheet or trade calendar for the period
- Remittance lines showing the MCB and the 8% fee
You dispute KeHE deductions in K-Solve, inside the KeHE CONNECT supplier portal. See the step-by-step dispute guide and check the KeHE dispute window before you file — miss it and even a valid claim is lost.
See how many mcb charges are in your actual file: upload a KeHE remittance to the free deduction recovery analyzer and it will flag the disputable lines and estimate what's recoverable.
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Analyze your KeHE remittance →Frequently asked questions
What is KeHE's MCB processing fee?
KeHE has applied a processing fee of 8% of the MCB amount, with a minimum of about $65 per distribution center, processed bi-weekly. The fee was 5% under KeHE's 2015 policy, so confirm the current rate in your agreement.
When is a KeHE MCB deduction invalid?
An MCB is invalid — and recoverable — when it's billed twice, applied outside the agreed dates or to the wrong SKUs, or claimed with no matching authorization on file.
How do I get KeHE MCB backup to verify a charge?
Match each MCB line on your remittance to a signed promotion authorization showing SKUs, dates, and rates. If you don't have the authorization, request backup from KeHE before paying the charge.
Related KeHE deductions
- KeHE promotional deductionsPre-agreed promotional expenses KeHE passes through — scans, TPRs, ad allowances and category fees — billed on billback statements.
- KeHE pricing deductionsShort-pays where KeHE paid a different price than you invoiced, or applied a deal you didn't agree to — among the most recoverable deduction types.
- KeHE shortage deductionsMoney KeHE withholds because its distribution center recorded receiving fewer cases or units than you invoiced — the most recoverable KeHE deduction type.