Every CPG deduction type, explained

A charge for units the buyer says it didn't receive against your invoice — one of the most recoverable deduction types because it turns on delivery documentation.

A promotional discount a distributor gives a retailer and bills back to the manufacturer — often with a processing fee on top.

Short-pays where the buyer paid a different price than invoiced, or applied a deal you didn't agree to — among the most recoverable deduction types.

A penalty for shipping fewer units than were ordered — distinct from a shortage at receiving, and typically a percentage of the shorted value.

A deduction taken to recover advertising or marketing spend the buyer claims to have run on your behalf — recoverable when the spend wasn't approved, documented, or was billed twice.

A deduction for product the buyer returned — unsold, damaged, or non-conforming. Usually legitimate; recoverable mainly when the return wasn't authorized or was double-counted.

The same deduction taken more than once — on one invoice, across invoices, or as both a chargeback and a short-pay. Highly recoverable because it's a pure paperwork error.

Charges raised by an auditor reviewing past invoices — often months after the transaction. Recoverable when the audit's claim is wrong, undocumented, or falls outside the dispute window.

A prompt-payment (terms) discount the buyer took without actually earning it — paying late but still deducting the discount, or taking a rate it wasn't entitled to. Among the most recoverable deductions.

Deductions that recover promotional discounts — billbacks, scan-downs, off-invoice and temporary price reductions. Recoverable when unauthorized, mis-keyed to the wrong dates or SKUs, or billed more than once.

Fees charged to place a new item — slotting, new-item, placement, and free-fill (free initial cases). Often contractual, but recoverable when duplicated, charged beyond the agreement, or taken for items never stocked.

Deductions for damaged, expired, or unsellable product — spoilage, swell, and unsaleables. Usually valid within an agreed allowance; recoverable when they exceed the allowance, aren't documented, or are duplicated.

Shipping-related deductions — backhaul allowances, detention, lumper fees, fuel, and freight-audit charges. Recoverable when applied on the wrong freight terms, at the wrong rate, or duplicated.