If you’re a retail supplier, you know deductions and chargebacks are part of doing business with big retailers. But do you understand the difference between retailer deductions and post-audit claims—and why both can quietly drain your revenue?
Many brands assume these are just the cost of doing business. That assumption could be costing you millions.
Let’s break it down to protect your margins before it’s too late.
Retailer Deductions: The Immediate Hit
Retailer deductions are the real-time claims retailers make against your invoices. They’re usually tied to things like:
Shortages – Retailers claim they received less product than you invoiced for.
Compliance Issues – Packaging, labeling, or shipping discrepancies.
Pricing Discrepancies – Retailers claim they were billed at the wrong price.
Trade Promotions – Promotional discounts retailers deduct automatically.
These deductions show up right away—often within weeks of invoicing. The good news?
They’re recoverable if you catch them fast. The bad news? Most brands either don’t have the time or don’t realize how much money is slipping away.
Post-Audit Claims: The Surprise Punch Years Later
Post-audit claims, on the other hand, are retroactive deductions. Retailers review past transactions (sometimes up to 3 years later!) and look for reasons to claw money back.
Common post-audit claims include:
Duplicate Payments – Retailers claim they paid you twice.
Pricing Errors – They say they were overcharged long after the fact.
Allowance Disputes – Retailers argue about promotional funding or past agreements.
These claims hit your books long after the sale is closed, leaving brands scrambling to defend invoices they don’t even remember.
Why Should You Care?
Because this money is yours. If you don’t fight for it, you’re giving away significant revenue that could be reinvested into your business.
Here’s the reality: Retailers are aggressive about recovering money, but most suppliers don’t push back enough. They assume the retailer must be right or that the amount isn’t worth disputing, which is what some retailers may count on.
How to Protect Your Profits
To stop leaving money on the table, suppliers should:
Monitor deductions closely – Don’t let them pile up. Small amounts add up to big losses.
Fight invalid claims – If you have proof, dispute every deduction you can.
Work with a recovery expert. Most teams don’t have the bandwidth to track this in-house, so experts like HRG can help.
The bottom line? Deductions and post-audit claims are games you need to play to win. If you don’t have a strategy, you’re handing over hard-earned revenue without a fight.