Target: Managing Deductions and Disputes for CPG Brands

Target has over 250 reason codes to describe and categorize deductions. We’ll go over the most common reason codes, what they mean, and how to find them. By understanding the reasons behind deductions, finance and operations teams can work together to improve margins and operate more efficiently.

Shipping Related

A030 - Short-ship, when the supplier ships fewer cartons than were originally ordered

A135/147 - Short Ships, when the supplier ships goods in error that were not originally ordered

A034 - Short-ship, when the supplier ships fewer units or case packs than were originally ordered

A036 - Pricing Variance, deduction for the difference in invoice and receipt due to pricing difference

A038 - Freight Non-Compliance, deduction due to an item substitution

A176 - Freight Non-Compliance, any combination of shortage, substitutions, which cause a difference between the invoice and receipt


A004 - Returns / Spoils, returned goods via the Return Policy agreement

A135 - Returns / Spoils, damaged item returned by a Target Distribution Center

A032 - Returns / Spoils, when the supplier ships items that are damaged or spoiled

A035 - Overship, when supplier ships too many items that are returned by a Target Distribution Center

Oftentimes, Returns / Spoils deductions may not have a Reason Code, and will instead be found in the header. Example below.

Disputing invalid deductions

It’s best practice to dispute as soon as your team recognizes the invalid deduction, but Target will allow brands to dispute up to 18 months back.

To kick off a dispute, click “Dispute” under the drop down for “Create a New Case” in Synergy.

  1. Enter the document number of the case you are disputing
  2. Select the reason for disputingsome text
    1. Carton Shortage
    2.  Damaged or Defective goods
    3. Casepack or Masterpack issue
    4. Cost difference
    5. Substitution
    6. Unit or Internal Shortage
  3. Add any additional context needed for why you are disputing
  4. Add dispute amount and receipt number
  5. Attach proof documentation (POD, BOL, etc)
  6. Wait!

Disputing through Confido

Confido has built native deductions and dispute workflows to streamline the process. First, Confido will automatically pull Target invoices daily into the portal, attach the backup with the appropriate payment, and code the deductions. The accounting team can push checks into the General Ledger directly from Confido.

Afterwards, Confido will flag high-likelihood disputes, and provide a single interface for CPG brands to dispute and track communications. No more logging into disparate portals and manual tracking.

Frequently Asked Questions

1. What documents are required to dispute?

For shortages, a chargeback copy, invoice copy, packing slip, signed POS/POD, and documentation supporting correct case pack are needed.

For returns, provide an AP Credit / Debit Memo and chargeback copy.

2. How long does it take for Target to respond to my dispute?

It takes around 25-30 days for Target to respond after submission.

3. What do the dispute statuses mean?

After submitting the claim, you will see the following statuses:

New: Target has not examine yet

In Progress: Target is currently examining

Awaiting Info: Dispute requires new or updated information

Resolved: A certain amount has been agreed upon to be paid back

Closed: Amount has been paid back or the dispute has been proven to be illegitimate

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