Retailer pass-through deductions

What is a retailer pass-through deductions?

Retailers often bill KeHE for programs tied to your products: scans, advertising, demos, placement and slotting, reclamation, resets, retailer spoils and fines. KeHE's Supplier Policies say it passes all of these through to you, "regardless of the timing", plus a processing fee from the Fee Schedule (§7.5, §8). KeHE describes itself as acting like a bank: the retailer deducts from KeHE first, and KeHE then deducts from you.

On a K-Solve export, the prefix often names the retailer: SPROU for Sprouts, HP and FTN for Fresh Thyme, KD and KN for Kroger programs, GP for Publix reclamation, BB for Brookshire Brothers. See the KeHE deduction key for the full list.

Why does it happen?

• A promotion, ad or scan program you or your broker agreed with the retailer, billed through KeHE.
• A retailer reclamation program, reset or spoils charge that KeHE is obliged to pass on.
• A retailer audit claim: KeHE says it can charge retailer claims back beyond its usual two-year audit window (§4.9).

Is it disputable?

Yes, but the retailer decides. KeHE's policy says that when a deduction error came from the retailer, KeHE repays you only when and if the retailer repays KeHE (§4.4). So the case is built on the retailer's backup: the retailer invoice behind the charge, the program you agreed, its dates and rate. Check that the program was yours, ran in the dates charged, at the agreed rate, on your items, and wasn't billed twice; and that KeHE's fee on top matches your Fee Schedule.

KeHE specifics: fees and timing

KeHE adds an administrative fee to pass-throughs ("Extra Performance", §7.5); the published rate is 8% with a $35 minimum, but your agreement's Fee Schedule governs. Request repayment in K-Solve within 180 days (§4.4), and expect the answer to wait on the retailer.

Backup you'll need to win it

• The retailer's invoice to KeHE behind the charge (KeHE's View Backup download in K-Solve)
• Your agreement with the retailer or broker: program, dates, rate and items
• Scan or sales data for the program period, for scan-based charges
• Your Fee Schedule, to check KeHE's processing 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 pass-through charges are in your actual file: upload a KeHE remittance to the free KeHE KSolve deduction analyzer and it will flag the disputable lines and estimate what's recoverable.