KeHE
KeHE deductions: the complete guide
Every deduction type you'll see on a KeHE remittance, whether it's recoverable, and how to fight it in K-Solve — with the 180-day dispute window you must not miss.
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.
KeHE is one of the two dominant natural & specialty distributors in the US (alongside UNFI) — the largest pure-play natural/specialty distributor, with roughly 19 distribution centers serving 30,000+ retail stores. It pays you the net of your invoice after subtracting shortages, promotional billbacks, spoils, compliance charges and fees. Those subtractions are deductions, and they land on your remittance with a code, a reference number and an amount — often with little explanation.
Published estimates of invalid, duplicated, or preventable deductions range from ~5% to ~60% across the industry. The catch: KeHE won't reverse them automatically — you have to identify each one, attach the right backup, and file a dispute in K-Solve within 180 days of the deduction date.
KeHE deduction types
Shortage / OS&D deductions
Highly disputableMoney KeHE withholds because its distribution center recorded receiving fewer cases or units than you invoiced — the most recoverable KeHE deduction type.
Manufacturer chargebacks (MCB)
Often disputablePromotional 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).
Spoils & warehouse damage
Usually validCharges for product deemed unsellable in KeHE's DC — plus a per-unit disposition processing fee documented at about $0.29 per unit.
Fill-rate / service-level penalties
Often disputableA penalty when you ship less than KeHE ordered — 3% of the shorted product value when fill rate falls below KeHE's 98% threshold.
Pricing & deal discrepancies
Highly disputableShort-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.
Promotional billbacks & scan-downs
Often disputablePre-agreed promotional expenses KeHE passes through — scans, TPRs, ad allowances and category fees — billed on billback statements.
See how much of your deductions you can recover
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