This deduction is taken when there is a net total dollar difference between what Kroger expected to pay and what they were billed. Kroger automatically attempts to determine if this difference is unit-based (ie: shortage deduction) or cost-based (ie: list cost deduction), but if it cannot automatically determine the reason for the discrepancy, then a code 8 deduction is taken.
How to Prevent Valid Code 8s
It is helpful to determine first if the deduction was related to costing or related to units billed vs shipped. Sometimes, it could be a difference in the units that Kroger was billed vs the units they expected to pay, ie: packs vs sleeves.
If the issue is related to incorrect units, be sure that you are billing for the units that Kroger includes on the Purchase Order.
If the issue is shortage related, be sure that you are shipping the same UPCs that you are billing Kroger for, and the same number of units that you billed Kroger for.
If the issue is cost related, be sure that you are providing Kroger with enough advanced written notice of any cost changes, and that you have submitted these cost changes via EDI before the effective date.
How to Dispute Invalid Code 8s
Recommended Claim Type: SH - Shortage or LC - List Cost
Recommended Backup Documentation:
If the issue is shortage related: Signed Proof of Delivery or Signed Bill of Lading
If the issue is cost related: Approval from Category Manager and Director of repayment of deduction
Once you have determined the reason for the discrepancy, then proceed with including the proof that refutes the specific issue.
If the deduction was shortage related, then shipping documents are helpful.
If the deduction is cost related, then you’ll need approval from the Category Manager and Director to repay the POs specific deduction.