What is Deduction Code 11?
Code 11s are generated when cost differences occur for specific items, such as item cost differences between the invoice and the purchase order.
How to Prevent Valid Code 11s
- It is a best practice to keep a table of all pricing changes and their effective dates so that you can quickly identify invalid code 11s
- Deductions are based on the PO price, so if the pricing on the purchase order (EDI 850) is incorrect do not ship the product and contact your buyer immediately. The buyer will need to make changes on a purchase order and either send an updated EDI 850 or cancel and send a new EDI 850. The buyer must authorize payback of pricing discrepancies in written form.
- Confirm that invoices are being generated correctly (check your EDI 810s)
Can Code 11s be Disputed?
You can dispute Code 11s in the Accounts Payable Disputes Portal (APDP) in Retail Link if you can prove that the PO price was incorrect. If the dispute is denied, then you should still contact your buyer directly to request a payback.
How to Dispute Invalid Code 11s
- Written documentation (emails, etc.) with buyer showing any changes/custom pricing agreements for the time frame
- Invoice (EDI 810) showing correct cost and allowances