Code 50s are given when an invoice is missing an advertising allowance specified on the supplier agreement. Verify all information and terms on your purchase order prior to fulfilling order. You sales representative should have written correspondence for any “special” PO Deals. Suppliers should review POs before accepting them.
Yes, code 50s can be disputed with your buyer if you can prove that the allowance was actually given on the invoice.
The common scenario for invalid code 50s is that your Supplier Agreement states that an allowance is supposed to be given off-invoice, but your EDI provider is actually giving the allowance off-line-item. In this scenario, the correct dollar amount is being withheld from the invoice, just from the wrong place. Disputing with your buyer and showing that the correct amount was already withheld can often overturn the deduction.
With your buyer.
**Allowances are negotiated terms included in the supplier agreement or purchase order and will not be reviewed for repayment through the dispute portal. These deductions must be initiated with supporting documentation and approved by your buyer.
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