How Conventional Suppliers Dispute UNFI Deductions

In this article, learn about:  

• What deductions are and how they impact UNFI suppliers 

• The types of deductions Conventional suppliers may encounter 

• How to dispute UNFI deductions 

• How to avoid deductions through proper invoicing and documentation 

______________________________________________________________________________ 

UNFI, which caters to thousands of retail locations throughout North America, organizes its suppliers into two main categories: Natural and Conventional. This classification mainly hinges on the type of products, the customer demographics, and the internal systems that help manage these suppliers. 

Natural suppliers typically work with UNFI’s core natural and organic retail customers, such as Whole Foods Market, Sprouts Farmers Market, and independent health food stores. These suppliers tend to focus on natural, specialty, and wellness-focused products. Their transactions are usually managed through different divisions of UNFI, which may include separate buyer relationships, deduction codes, portals, and compliance guides.  

Related Reading: How Natural Suppliers Dispute UNFI Deductions 

Conventional suppliers, on the other hand, support UNFI’s larger grocery and mass retail business. This includes supplying products to national and regional grocers like Cub Foods, Shoppers, etc. Because the scale and delivery expectations are different, Conventional suppliers often deal with a different set of processes than Natural suppliers.  

While the two supplier categories may overlap in certain backend processes, the systems to track, dispute, and resolve deductions vary. This article specifically focuses on Conventional suppliers — their deduction codes, how to use UNFI’s platform, and the best ways to avoid errors that trigger deductions in the first place. 

The Different Types of Conventional UNFI Deductions  

For suppliers working with UNFI, deductions are an inevitable part of doing business, but they don’t have to be a mystery. A deduction happens when a buyer, like UNFI, holds back a portion of a supplier's payment, usually because of issues related to pricing, promotional compliance, shipping, or invoice accuracy. Each deduction from UNFI is accompanied by a three-letter code that helps identify its general category. 

Deduction Codes for Conventional Suppliers 

How to Dispute UNFI Conventional Deductions 

Conventional suppliers manage disputes using UNFI’s Partner Accounting self-service platform, ePASS. UNFI does not use the language of ‘initiating a dispute’ instead they say, ‘opening a pass.’  

Before opening a pass in ePASS, the first step is figuring out whether the deduction is valid or worth disputing. In order to do this, start by reviewing the deduction code and checking the amount and date against your internal records. Look at any related promotions, freight terms, or pricing agreements to see if the deduction matches what was agreed upon. If the invoice was submitted correctly, the shipment was accurate, and there’s no clear reason for the deduction—or if it looks like the charge was duplicated—then it may be worth challenging.  

Disputing the Deduction aka ‘Opening a Pass’  

To submit a dispute through ePASS, suppliers must first have access to the SV Harbor portal. 

If access hasn’t been set up yet, new suppliers or brokers can reach out to MerchandisingServices@unfi.com to get started. After gaining access, each company must appoint an Administrator to oversee user permissions. It’s important to note that supplier and broker accounts should be kept completely separate, and user credentials should not be shared between the two.  

Once inside the platform, suppliers can use the Document Search feature in ePASS to locate specific deductions using document numbers.  

If a deduction doesn’t show up in the search results, a pass can still be created manually under “Create PASS#”. When filling out a pass, suppliers should include a clear explanation of the deduction in question, upload any relevant backup files (up to 5MB), and make sure to include the corresponding deduction code. 

UNFI suggests that you submit any disputes within 60 days of the original deduction. However, if you send them in sooner, you might get a quicker response; typically, most passes are reviewed and resolved in about 30 to 45 days. Suppliers have up to 12 months to dispute a pass after it’s been issued. 

How to Avoid UNFI Conventional Deductions 

While challenging deductions can certainly help bring back some lost revenue, the best approach is to steer clear of them in the first place. A lot of deductions stem from minor, avoidable errors—usually related to how invoices are set up, how charges are presented, or how orders are processed. 

Best Practices for Invoice Formatting and Submission 

Invoices submitted to UNFI should match the details outlined in the purchase order (PO). Suppliers should only send one invoice per PO, and it should be submitted after the order has shipped.  

Each invoice needs to clearly show: 

• A unique invoice number 

• The corresponding PO number 

• Any relevant allowances or additional charges 

Keep in mind that invoices aren't the right place to settle disputes or ask for adjustments. Each line item should accurately reflect how the order was placed—whether by the case or master case—and the total on the invoice must correctly represent the sum of all products and charges listed. 

Handling Off-Invoice Discounts (OIs) 

For promotional discounts (e.g., ad placements or flyer promotions), be sure to show the discount at the line level. Each discounted line should include: 

• The original item subtotal 

• The name and amount of the discount (e.g., “Ad Promo – 10%”) 

• The final, discounted price 

This level of transparency helps avoid confusion and ensures that both UNFI and the supplier are aligned on price expectations. 

EDI Invoicing Best Practices 

When submitting invoices through EDI, formatting errors can trigger rejections or deductions. To stay compliant: 

• Include both the UPC and UNFI item number 

• Keep the item order consistent with the original PO 

• Use PO flip functionality (if available) to streamline data entry 

• Ensure totals match exactly,including line items, discounts, and charges 

Related Reading: What is EDI (Electronic Data Interchange)?  

Stay in the Loop with SupplierWiki 

Create a free SupplierWiki account to unlock more in-depth guides, expert insights, and practical tools—plus the ability to save your progress and favorite resources for easy access anytime.