Contractual Deductions at Target
Contractual deductions are part of the Target Vendor Income (TVI) agreements, which incentivize Target to promote a supplier’s products and enhance Target’s margins. These agreements are formal contracts signed by both parties that specify the terms, including:
Items involved
Timeframes for tracked activities
Vehicles for the trade
Calculations for sales or promotional activities
Relevant stores or outlets, if applicable
The "contract vehicle" refers to the primary functional activity the contract is designed to monitor. In SupplyPike, this is represented by a code.
Suppliers wishing to dispute deductions must first obtain buyer approval and submit the dispute within 18 months of the deduction being applied. Since many deductions are pre-approved, SupplyPike validates each one and only recommends disputing deductions likely to be invalid. For these invalid deductions, SupplyPike:
Customizes the dispute amount
Provides a tailored explanation
Attaches relevant supporting documentation
Deductions deemed valid or uncertain are automatically archived and accessible in the "All" bucket.
Identifying Contractual Deductions to Dispute:
1. Log in to SupplyPike.
2. In the Target Deductions app, find the Deductions List view page.
3. Select the “New” bucket.
4. In the Filters, click the “Code” filter and select “Contractual.”
5. Click on the first deduction in the list of filtered deductions. Review the deduction dispute amount and dispute explanation to understand what pieces of the contractual deduction SupplyPike found to be invalid.
If you agree the deduction should be disputed, download the proof documentation attached to the deduction.
If you don’t agree the deduction needs to be disputed, you can archive the deduction.
Email Your Buyer for Approval
1. Once you have reviewed the deductions you want to dispute and have the proof documentation downloaded, you will need to email your buyer to get approval for the payback before you can submit a dispute to Target.
2. Return to the “New” bucket filtered to Contractual deductions to export the invalid deductions that have not been archived.
Export the deductions to reference these key data points:
Document #
Document Date
Invalid Amount
Deduction Total Amount
3. Email your buyer, and be sure to include:
Document # and invalid amount you would like to dispute
The relevant proof documentation
A brief explanation of why you are disputing each deduction
Clear ask for approval of the payback
Dispute!
Once you have approval from the buyer:
Navigate to the “New” bucket and click “Search” and select “Search Multiple” to use the multi-search function to find all the deductions the buyer has approved for repayment.
Bulk attach the buyer’s approval and submit the disputes:
Bulk Actions → Add Attachment → Attach the email of the buyer’s approval
After attaching the emails, you can also find which deductions are ready to dispute by filtering to:
Code → Contractual
Files → With Email Approval
When you are ready to dispute, use Bulk Actions → Submit Disputes
More Questions?
For more guidance, contact your Customer Success Manager or support@supplypike.com.