Code 5: Do not stock
What is Deduction Code 5?
Code 5s are deductions typically related to EDI noncompliance, especially regarding invoice submission to Kroger. This deduction will either be $250 or 1% of the total invoice amount, whichever is greater.
How to Prevent Valid Code 5s
Suppliers that accept Purchase Orders from Kroger will have 90 days to become compliant on being able to receive Purchase Orders via EDI as well as transmit invoices to Kroger via EDI. Ensure that your invoices are being sent via EDI to avoid this deduction.
How to Dispute Invalid Code 5s
It is uncommon to dispute code 5 deductions. If Kroger has to process a manually uploaded invoice not sent through EDI, then this charge is taken.
Related Resources
Written by The SupplyPike Team
About The SupplyPike Team
SupplyPike builds software to help retail suppliers fight deductions, meet compliance standards, and dig down to root cause issues in their supply chain.
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