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Shortage Deductions Validity

Learn more about validity judgments for shortage-related deductions in SupplyPike's Target application.

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Written by Abby Mandel
Updated this week

Overview

At SupplyPike, we understand the importance of having confidence when disputing deductions. With the introduction of Validity Judgments for Target shortage deductions, you can now have that assurance. Use validity judgments to confidently fight invalid deductions and analyze valid deductions to identify areas for improvement to prevent deductions before they occur.

How It Works

The SupplyPike Deductions app collects and analyzes your ASN, Invoice, Purchase Order (for Fill Rate Original), and Target's receiving data to evaluate whether each item included on the deduction is likely valid, likely invalid, or validity unclear. We will apply an overall validity judgment to the deduction based on the validity judgment for each item on the deduction.

For Invoice Match:

  • ASN Data: We check the ASN data versus (1) the invoiced quantity and (2) the the chargeback document to see if the ASN quantity supports the shortage or not.

  • Target's Receiving Data: We check Target's internal receiving data versus (1) the invoiced quantity and (2) the chargeback document to see if the data supports the shortage or not.

For Fill Rate Original Compliance Fines:

  • ASN Data: We check the ASN data to see if the ASN indicated a shortage or not.

  • Receiving Data: We check if Target's internal receiving data supports the shortage or not.

  • Invoice Data: We check the invoice data to see if the invoice indicated the item was shipped short.

How are the Validity judgments defined?

SupplyPike's Target Deduction application will assess the validity of shortage-related deductions at the item level. If any of the items are found to be likely invalid, the entire deduction will be flagged as likely invalid. Conversely, to be flagged as likely valid, all deducted items must have been found to be likely valid.

Likely Valid: After analyzing the data, we found that it looks like the item was shipped short, and the shortage quantity matches what Target had indicated. We also found that the quantity Target shows on the chargeback document matches Target's own receiving data and your invoice and ASN data.

Likely Invalid: After analyzing the data, we found that it does not look like the item was shipped short, or at least the shortage quantity does not match what Target had indicated. We see support in Target's own receiving data, your invoice, or the ASN to indicate that you shipped Target more of the item than Target has given you credit for.

Validity Unclear: There is insufficient data to make a definitive judgment.

Which shortage codes have validity judgments?

  • A030

  • A032

  • A034

  • A176-Carton Shortage

  • Fill Rate Original

Can I filter by Validity judgment?

Yes! Use the Validity filter on the List View to see all deductions by validity judgment.

Can I adjust my auto-dispute settings based on Validity judgments?

Yes! For the codes that have validity judgments, you can adjust your auto-dispute settings to also consider validity when disputing.

If the deduction code does not have validity judgments available to consider while auto-disputing, the option will be greyed out in Auto Disputing settings.

Why It Matters

Understanding the validity of deductions helps you:

  • Dispute with Assurance: Confidently dispute Likely Valid deductions.

  • Identify & Optimize: Track trends in Likely Valid deductions to spot improvement areas and prevent future deductions before they occur.

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