Deductions 101
Valid vs. invalid deductions
Not every deduction is worth fighting — but far more are recoverable than most brands assume. Here's how to tell them apart so you spend your time where the money is.
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.
"Valid" means the buyer was entitled to the money; "invalid" means they weren't — and you can get it back with the right proof, filed in time. Estimates of the invalid, duplicated, or preventable share range from ~5% to ~60% depending on category and retailer, with a commonly cited mid-range of 10–40%.
Signs a deduction is likely recoverable
- You have a signed BOL or proof of delivery that contradicts a shortage claim.
- The price paid doesn't match your PO or cost sheet.
- An MCB or promo has no matching authorization on file.
- The same reference or program was billed twice.
- A fill-rate penalty was calculated on a PO the buyer later cut.
Signs a deduction is probably valid
- Genuine spoilage or damage of product inside the DC.
- A promotion you approved, billed at the agreed rate and window.
- A real short-ship you can't document as an amended order.
Where to focus your dispute time
Prioritize the high-recovery categories — shortages and pricing — because they turn on documents you likely already have. Then work the "needs review" pile, where duplicates and unauthorized charges hide. Leave clearly valid spoils and authorized promos alone. And remember: even a recoverable deduction is lost if you miss the dispute deadline — KeHE allows 180 days, UNFI recommends 60 (up to 12 months), and some partners give as little as two weeks.
See how much of your deductions you can recover
Upload a remittance from KeHE, UNFI, or any retailer and get a categorized, recoverable-dollar estimate in seconds. Free, no signup — your file never leaves your browser.
Use the free deduction recovery analyzerFrequently asked questions
What percentage of deductions are invalid?
Published estimates of the invalid, duplicated, or preventable share range from roughly 5% to 60% depending on category and retailer — there's no industry consensus. A commonly cited mid-range is 10–40%. The share you can actually recover depends on your documentation and dispute windows.
What makes a deduction valid?
A deduction is valid when the buyer was entitled to the money — a promotion you approved billed at the agreed rate, genuine spoilage, or a real short-ship you can't document as amended. Valid deductions aren't worth disputing.
Which deductions are most worth disputing?
Shortages and pricing discrepancies are the highest-recovery categories because they turn on documents you likely already have — a signed BOL/POD for shortages, a PO for pricing. Then work the 'needs review' pile where duplicates and unauthorized charges hide.
Can a valid deduction become unrecoverable?
Yes — even a clearly recoverable deduction is lost if you miss the buyer's dispute window. KeHE gives 180 days, UNFI recommends 60 days (up to 12 months), and some distributors give as little as two weeks. File early.