AutoZone Accounts Payable: Adjustment Memos, Commercial Accounts, and Vendor Portal Access

In this article, learn about: 

• AutoZone payment processes 

• Allowances, chargebacks, and deductions 

• AutoZone vendor portal reports 

• Best practices to maintain compliance 

AutoZone is the leading retailer and distributor of automotive parts and accessories in both North and South America. With more than $18.5B in annual sales, AutoZone’s supplier relationships run on tight Accounts Payable (AP) processes. Understanding invoices, payments, and adjustment memos is essential to staying compliant and getting paid on time.  

AutoZone Invoice Submission and Auto-Matching 

AutoZone requires all invoices to be submitted through Electronic Data Interchange (EDI). Paper invoices are only allowed in rare exceptions, such as when a new vendor is newly onboarding.  

With EDI, invoices can automatically be matched against AutoZone’s receiving records. This process is called auto-match, and it’s the fastest route to payment.  

AutoZone's Auto-Match 

For an invoice to auto-match successfully, three things must line up: 

• Item Numbers—they must match exactly with the purchase order (PO) 

• Cost—the invoiced cost must equal the PO cost 

• Quantity—what you ship must equal what is listed on the PO 

For Vendor Direct Purchase (VDP) auto-match, there’s one more additional box to check.  

• FedEx delivery receipt—the tracking number must appear on the EDI invoice exactly as AutoZone requires 

When this information aligns, the system moves your invoice into fully processed status. When information fails to meet this criteria, the system flags it, leading to penalties and delays. 

Related Reading: Common EDI Document Types for the Retail Industry 

Penalties for Errors 

When invoices do not align, AutoZone flags them and issues an adjustment memo. Each adjustment memo comes with a $25 penalty. For VDP invoices, missing or incorrect FedEx tracking numbers also trigger penalties and fees. 

Suppliers should always double-check invoice dates, as VDP invoices must be transmitted within 60 days of the PO date. Miss that window, and your payment will be delayed.  

Understanding AutoZone Payments 

AutoZone prefers electronic funds transfer (EFT) because it is fast, reliable, and secure. Other options include checks or the Supplier Confirmed Receivables (SCR) program. 

• EFT—deposited on the due date 

• Checks—mailed on the due date (possible postal delays) 

• SCR—early payment through a partnering bank in exchange for a discount 

Many suppliers also use an AutoZone commercial account for streamlined payment tracking. 

Due Dates and Timing 

AutoZone calculates due dates based on the Receipt of Goods (ROG) date and the payment terms within the supplier agreement. Payments are made on the due date if the balance is positive. If deductions exceed payments, then no payment is issued. 

Beyond standard payments, AutoZone also offers suppliers a financing option through its Supplier Confirmed Receivables program.  

Supplier Confirmed Receivables (SCR) 

The Supplier Confirmed Receivable (SCR) Program gives vendors a way to accelerate cash flow. AutoZone confirms the payable amount with a bank, the bank pays the supplier early (with a discount), and then AutoZone pays the bank on the due date. 

The program can be a useful tool for suppliers needing liquidity without changing payment terms. 

Related Reading: Vendor Compliance Checklist 

Adjustment Memos 

Adjustment memos are AutoZone’s way of correcting invoice errors. Each memo includes the invoice number and PO number along with a correction code.  

Each memo has a unique ID starting with A and carries a $25 penalty fee. AutoZone will list the original invoice and PO number along with the correction code. Categories include: 

• Cost 

• Quantity 

• Allowances 

• VDP non-match 

AutoZone does not accept credit memos from suppliers to resolve adjustment memos. Instead, all corrections must flow through the established AutoZone process.  

Disputing Adjustment Memos 

Disputes must be submitted within these time limits: 

• Invoices—Disputes must be filled within 18 months of the invoice date. 

• Returns—Disputes must be filed within 9 months of the deduction date.  

Suppliers disputing within the approved time periods may submit information requests and disputes to:  merch.payable@autozone.com. 

The Dispute Template 

Disputes must be submitted via AutoZone’s Excel dispute template. Key fields include:  

• Supplier Number (APV) 

• Adjustment memo and invoice number 

• PO number 

• Invoice date 

• Disputed amount 

• Research type (i.e., pricing adjustment, shortage adjustment, VPD non-match) 

• Detailed comments  

Backup Documentation 

Depending on the dispute, you may need to provide: 

• Cost disputes—Approval from the category manager 

• Quantity disputes—DC inventory adjustment report (AutoZone looks back 120 days) 

• Allowance disputes—Copies of the vendor agreement 

• Cancelled PO disputes—Proof of delivery showing AutoZone received the product 

Related Reading: The Difference Between AP and AR Deductions 

What Happens Next? 

Once submitted, AutoZone Accounts Payable will research the claim, sometimes involving merchandising managers. Resolutions may result in: 

• Full repayment 

• Partial repayment 

• Denial 

Management approval is required for all dispute settlements.  

AutoZone Chargebacks, Allowances and Other Deductions  

While POs, invoices and payments are the heart of AP, vendors need to know about AutoZone’s deduction landscape. 

Chargebacks 

In each standard Supplier Agreement, it states that AutoZone can return merchandise to suppliers. The document used to initiate that return is called a chargeback.  

The deduction equals the current cost of the returned items. Chargebacks move fast—deductions are typically taken immediately.  

Billbacks and Allowances 

These are deductions tied to Supplier Agreements, such as: 

• Advertising Allowance 

• Promotional support 

• Freight cost sharing 

• Fill rate or late PO penalties 

Billbacks are automatically deducted; suppliers should not issue credit memos or checks. Suppliers will notice the billback numbers are 10 characters in length. The first 2 characters identify the type. The last eight digits are sequentially assigned.  

Example: Invoice # A900002424 is an advertising allowance. 

Related Reading: Trade Deductions and Chargebacks 

AutoZone Vendor Portal 

The AutoZone vendor portal houses key data that helps suppliers monitor invoices, payments, and deductions.  

Reports you can find within the portal include: 

• AP Open Invoice Detail–-Fully processed invoices still waiting for payment 

• AP Paid Invoices—a report of all invoices that have been paid by AutoZone 

• Adjustment Memos—a report of corrections and penalties 

• Chargeback Detail—Line-item details on merchandise items 

• Error Reports—for invoices stuck in limbo due to EDI mistakes 

Monitoring these reports regularly helps suppliers spot issues early before they snowball into disputes.  

Best Practices for Suppliers Working with AutoZone 

Aim for 100% auto-match. Make sure invoices line up perfectly with POs, ASNs, and delivery receipts.  

Use EFT. It is faster, safer, and preferred by AutoZone. 

Submit disputes on time. Respect the 18-month (general) and 9-month (returns) deadlines.  

Keep agreements handy. Many disputes hinge on having the original supplier agreement or category manager approval.  

Monitor the Vendor Portal. Use reports to catch errors before they turn into big problems.  

Avoid late and incomplete shipments. Fill rate and late PO penalties add up quickly.  

Working with AutoZone requires precision. From invoice auto-match to managing adjustment memos and deductions, success comes down to clean documentation, on-time submissions, and active monitoring of the vendor portal. Suppliers who stay proactive—aligning invoices with POs, disputing within deadlines, and researching chargebacks—set themselves up for consistent and timely payments. 

Looking for More? 

At times, keeping up with deduction management across retailers can become overwhelming. SupplyPike offers cutting edge software that simplifies this process, accelerates cash flow, and uncovers insights suppliers need to stay in the zone with AutoZone—and every other retailer they work with!