Deduction type
Slotting / new-item / free-fill deductions
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.
Mihir Naik · Founder, OverDeduct — deduction recovery for 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.
A slotting deduction is a fee a retailer or distributor charges to give a new item shelf or warehouse space. It comes in related forms: slotting or placement fees (paying for the slot), new-item fees (an administrative charge to set up the SKU), and free-fill (the first cases provided free to stock the shelf). These are usually negotiated up front as part of getting listed.
Because slotting is typically contractual, it's less disputable than a shortage or pricing error — you agreed to it to get on the shelf. The recoverable cases are narrower: fees charged beyond what the agreement specified, the same slotting or free-fill billed more than once, fees taken for items that were never actually set up or stocked, and free-fill quantities that exceed the agreed number of cases.
The documentation that decides these is the new-item authorization or listing agreement — the amounts, the SKUs, and the free-fill quantity you signed off on. Matching each slotting or free-fill deduction back to that agreement is what surfaces the over-charges hiding inside an otherwise legitimate program.
Wondering how many slotting / new-item / free-fill deductions you're actually being charged? Run a real remittance through the free deduction recovery analyzer to see every line categorized and what's realistically recoverable.
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Use the free deduction recovery analyzer →Frequently asked questions
What is a slotting fee?
A slotting fee is what a retailer or distributor charges to give a new item shelf or warehouse space. Related fees include new-item setup charges, placement fees, and free-fill — the first cases provided free to stock the shelf.
Are slotting deductions disputable?
Usually they're contractual and valid. They're recoverable when charged beyond the agreement, billed more than once, taken for items never stocked, or when free-fill exceeds the agreed number of cases.
What proof do I need to dispute a slotting deduction?
The new-item authorization or listing agreement showing the agreed amounts, SKUs, and free-fill quantity — then match each deduction to it. Anything charged beyond what you signed off on is recoverable.
Other deduction types
- Shortage deductionsA 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.
- Manufacturer chargebacks (MCB)A promotional discount a distributor gives a retailer and bills back to the manufacturer — often with a processing fee on top.
- Pricing & deal discrepanciesShort-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.
- Fill-rate / service-level penaltiesA penalty for shipping fewer units than were ordered — distinct from a shortage at receiving, and typically a percentage of the shorted value.
- Co-op advertising (co-op) deductionsA 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.
- Returns / RTV deductionsA 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.
- Duplicate deductionsThe 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.
- Post-audit deductionsCharges 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.
- Unearned / unauthorized cash discount deductionsA 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.
- Promotional billback / scan-down deductionsDeductions 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.
- Spoilage / swell / unsaleables deductionsDeductions 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.
- Freight / backhaul / detention deductionsShipping-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.