Pickup Allowance Codes:
SPS Commerce categorizes the following codes as pickup allowance deductions based on information provided by Kroger and how we see suppliers disputing these deductions with Kroger.
9 - Pickup Allowance (freight/logistics)
FA - FREIGHT ALLOWANCE DEDUCTION
FU - BACKHAUL DEDUCTION
Description
Pickup allowance deductions are taken for freight charges for POs picked up by Kroger carriers, i.e., Collect or Backhaul shipments from Kroger trucks.
How to Prevent
Kroger generally charges for shipping your goods from your facilities to their divisions. One way to avoid this allowance is to switch to Prepaid and arrange your own transportation rather than rely on Kroger’s trucks.
How to Dispute
Default Dispute Type: PU - Pickup Allowance
Recommended Backup Documentation
Signed Proof of Delivery (POD)
Policies or agreements related to not charging for pickup
Invoice
Kroger has sometimes taken invalid pickup allowance deductions for POs that they did not in fact pickup. If this is the case, attaching a shipping document from your carrier with the PO number would be useful to refute the deduction.
Kroger may also pick up multiple POs in one shipment, and if so, should only take the deduction once for the entire shipment. If the deduction is taken on each PO in the same pickup, then attaching the shipping documentation as well as a copy of the deduction taken on the invoice of the other PO would help fight this deduction.