Like all retailers, CVS deducts from your invoices whenever they find that you are not meeting on of their rules, didn't ship what they expected, or had some other agreement in place. Keeping track of all these different scenarios and charges can be hard to manage but this article should help explain the difference.
For an exhaustive list of what different Invoice #'s mean when they are deducted -
Deduction Types
All of the following types can be found within the SAP Vendor Portal in both the Invoices and Payments tab. They will only exist in the Payments tab when officially transacted but also exist in the Invoices tab under an Open status before transacted.
The various types of deductions fit into the following buckets:
AP Deductions (Warehouse Payables)
Compliance
Returns
Co-Ops
Profit Recovery
AP Deductions
Usually denoted by a W, X, or V on the end of the original invoice number.
Ex: You invoice for payment on Invoice #: 123456, if CVS doesn't think you shipped everything, they will deduct what is missing on a new invoice labeled 123456W.
The above example would likely be a shortage but all the types of AP Deds. are:
Shortage
Pricing
Allowance
Casepack
Other (Cash Discounts, Fees, Taxes)
These can all be disputed through the SAP Vendor Portal
Compliance
These charges are denoted by the following on the beginning of the invoice:
AI - Appointment Integrity
B- Missing BOL
LOG- LOG Expense
P- Missing Packing List
SCP - Supply Chain Performance (Disputed through Traverse)
These invoices will end with:
AS - ASN
OT - On Time and In Full
SP - Small Parcel
Ex: SCP123456OT
All the charges from above that do no start with SCP, can be disputed or inquired about further by emailing supplychainperformance@cvshealth.com
Returns
These are deductions CVS has enabled in order to recover costs on anything that was returned to the store. They break down into the following three groups:
Unsaleable Merchandise - expired, short dated, damaged, end of a promotion, or high risk of a customer return.
Product Withdrawal - Anything that is overstocked, discontinued, otherwise unsellable to protect CVS's Brand, reputation, or customer goodwill.
Product Recall - Voluntary or Involuntary removal of merchandise due to potential hazard or defect, or failure to comply with FDA, EPA, and other agreed open regulations.
Post Audits
This type of charge comes from a review of all invoices paid within the current year and three years prior. These audits are performed on a monthly basis looking for quantity or pricing discrepancies.
These can occur for a variety of reasons and require individual review to validate.
Co-Ops
These can either be advertising or coupon based and all have to reviewed individually as well to validate. Usually related to promotions or other agreements with CVS that need to be reviewed.
The categories these breakdown into are:
Front store
Pharmacy
Hawaii specific rules
Navarro and Puerto Rico
Diabetic Test Strips
Front Store, store brands
CVS WorkSmart Program