Code 5s are deductions typically related to EDI noncompliance, especially regarding invoice submission to Kroger. This deduction will either be $250 or 1% of the total invoice amount, whichever is greater.

Suppliers that accept Purchase Orders from Kroger will have 90 days to become compliant on being able to receive Purchase Orders via EDI as well as transmit invoices to Kroger via EDI. Ensure that your invoices are being sent via EDI to avoid this deduction.

It is uncommon to dispute code 5 deductions. If Kroger has to process a manually uploaded invoice not sent through EDI, then this charge is taken.