Shortage Codes:
SPS Commerce categorizes the following codes as shortages based on information provided by Kroger and how we see suppliers disputing these deductions with Kroger.
4 - Shortage/Damage/Do Not Stock (shortage)
6 - Item invoiced/Not received (shortage)
8 - Net total dollar difference (packs vs sleeves usually)
04D - Short/Damage/Do Not Pick - Debit Memo
DG - Damage Deduction
II - Invalid Item
RR - Refused & Returned Product
SD - Shorted Deals
SH - Shortage Deduction
Blank
Description:
Kroger imposes a shortage deduction when they receive fewer cases than what they were billed for. Some of these codes indicate the shortage was caused by different factors, for example DG - Damage Deduction, but should still be disputed as a shortage deduction with Kroger.
Note: While Code 8s could be a shortage or cost difference deduction, SPS's research has found these are Shortage deductions a majority of the time, so we will automatically map to be disputed as a shortage with Kroger.
How to Prevent:
Ensure that the number of units billed to Kroger for each item matches the number of units shipped to Kroger.
Ensure that you are billing for the correct unit type (ie: packs vs sleeves)
Ensure that the items you are billing for are the same items that you are shipping. The same product may have multiple UPCs depending on how it’s packaged, so be sure that your invoice UPCs match your actual shipped UPCs.
If the Code 8 deduction is pricing related, ensure that your are providing Kroger with enough advanced notice of any cost changes, and that you have submitted these cost changes via EDI before the effective date.
How to Dispute:
Default Dispute Type: SH - Shortage
Required Backup Documentation:
Invoice
Signed Proof Of Delivery (POD) or Signed Bill of Lading (BOL)
If you are a Prepaid shipper, then a signed POD at the Kroger warehouse will be required.
If you are a Collect shipper with Kroger picking the product up at your facility, then a signed BOL will be necessary to successfully dispute.
Recommended Backup Documentation:
A packing list document if it’s not already on the POD or BOL
Kroger's signed documentation may either note any shortages or overages on the document, or they may sign with a “Received Subject to Count” stamp. If this kind of stamp is on your signed document, then you should still dispute if you believe you shipped in full. They will either confirm that they received in full or follow up with a document stating a shortage or overage that they later found.