Just like other retailers, Home Depot will deduct from your check and label them with different codes. In this article we'll break down the difference between chargebacks (AP Deductions) and offsets (AR Deductions) at Home Depot.

Deductions where the retailer withholds money from a check are referred to as Accounts Payable (AP) deductions. When Home Depot pays its supplier less than the expected invoice amount in their terminology this is referred to as a "chargeback".

Accounts Receivable deductions are typically in the form of an invoice sent by the retailer to the supplier for compliance related fines. Home Depot is unlike other retailers in that majority of compliance fines are also withheld from a check.

Both chargebacks and offsets can be disputed within Supplier Hub. Chargebacks are disputed through the Merchandise Payables (MP-SSP) application while offsets are disputed through the Supplier Performance Management (SPM) application in Supplier Hub.

When looking at a remittance at Home Depot, it can sometimes be overwhelming seeing a long list of different codes. Chargebacks, luckily, are fairly straight forward. These codes can be found in the Reason Code column if looking at the Merchandise Payables remittance download. The main three occurrences being, *SHORTAGE, *PRICING DISCREPANCY, and *TRADE DISCOUNT.

Offsets on the other hand, can be a little trickier to decipher. Codes for these will show up in the invoice number and/or reason code columns in the Merchandise Payables remittance download. An easy way to quickly navigate to your compliance offsets in the Merchandise Payables remittance is to filter the doc type column by code "SA". From there, you will see a mix of marketing/contractual deductions as well as compliance offsets. Below is a list of common compliance offsets with a brief description:

Taking it a step further, these codes generally follow a similar pattern to identify the month or quarter and year that the offset is correlated to. Most will show the identify the month with the first two digits, followed by a two or four digit year.