Code 21s are for concealed shortages that are not visible when the shipment is first received. Concealed shortages are defined in three ways: Inner Ctn.Shortages / Inner Pallet Shortages / Part Supplier Pack.
How to Prevent Valid Code 21s
- Ship in full per the PO
- Make sure your packaging/labeling for different items is distinct so that it is clear to the receiver which items were shipped. Code 21s are sometimes filed when the receiver mistakenly identifies the items received.
Can it be Disputed?
Code 21s are usually not disputable. If you can prove that the shipment was in full then it may be worth filing a claim.
How to Dispute Invalid Code 21s
- Purchase Order (EDI 850) showing requested quantities
- Proof of Delivery showing items received. Be sure the PO# is clearly listed on the POD.