In this article, learn about:
What deductions are and how they impact UNFI Natural suppliers
The types of deductions Natural suppliers may encounter
How to dispute UNFI deductions
How to avoid UNFI deductions
______________________________________________________________________________
UNFI (United Natural Foods, Inc) is one of the largest food distributors in North America, supplying everything from organic snacks to specialty supplements across a vast amount of retail locations. To manage such a wide range of products and partners, UNFI suppliers are divided into two groups: Conventional and Natural. Conventional suppliers work with mainstream grocers like Shoppers and Cubs, while Natural suppliers serve wellness focused retailers like Whole Foods and Sprouts.
Related Reading: How Conventional Suppliers Dispute UNFI Deductions
Each supplier group operates in its own framework, for example they have different portals, different teams, and importantly, different deduction codes. In this guide, we will break down what these deductions mean, where they typically occur, and what steps Natural suppliers can take to prevent and recover revenue from chargebacks.
What Are UNFI Deductions?
UNFI deductions are payment adjustments made when there’s a breakdown in the fulfillment process —whether that’s a mismatch between invoice and PO, a pallet that didn’t meet standards, or an order that arrived late to a distribution center. Each deduction is logged using a specific code, which can be traced back to a category like freight, pricing, or compliance.
Natural and conventional suppliers can find these codes in UNFI’s Supplier Deduction Key 01.14.2025.xlsx spreadsheet, which contains hundreds of unique deductions. While many are customer specific, most fall into a few common buckets as seen below.
Deduction Code | Description |
ERSLSBYS(mmyy)0(Remit#) | Sales Velocity Report by State Fee for reporting sales performance by dollar and case volume across states and distribution centers. |
29CM / PCM / FNCM | Recall Disposal Fees Charged when recalled items remain in UNFI warehouses and require destruction or removal. |
(Invoice#)(Company Code) | Third-Party Customer Charges Retailer-incurred costs passed through to the supplier by UNFI. |
(Invoice#)-111 | Quantity or Pricing Discrepancy Occurs when invoice, PO, and receiving data do not match. |
(Invoice#)CV | ClearVue Program Deduction Deducted when the ClearVue allowance isn’t reflected on the invoice. |
(Invoice#)SP | Spoilage Allowance Omission Issued when spoilage credits are left off the invoice. |
PB / DM (Suffixes) | Deduction Repayment Indicator Denotes repayment or correction of a previously disputed deduction. |
LCBC(PO#) | Barcode Non-Compliance Fee Charged when barcodes are missing or not scannable on cartons or pallets. |
LCP(PO#) | Pallet Labeling Non-Compliance Fee for missing or incorrect pallet placards or required PO labels. |
WRSLOFE(mmyy) | Slotting Fee for New Items Charged when new items, pack changes, or reactivations require warehouse slot setup. |
LCF(PO#) | Load Securement Failure Product was not properly secured, leading to movement or damage during transit. |
LCPV(PO#) | Pallet Construction Violation Pallet fails one or more standards (e.g., overhang, damage, poor stacking). |
LCBOL(PO#) | Incomplete Shipping Docs Missing or incorrect BOL or packing slips on delivery. |
AVL(PO#) | Late Delivery Penalty Applies when shipments arrive over 30 minutes past scheduled appointments. |
AVNCNS(PO#) | No-Show Delivery Fee Charged when a supplier misses a delivery appointment without notice. |
AVR(PO#) | Last-Minute Rescheduling Fee Applies when a delivery is rescheduled with less than 24 hours’ notice. |
LCO(PO#) | Missing or Unreadable UPCs UPC barcodes are either not included or cannot be scanned on the product. |
CMQ(mmyy)0(Remit#) | Quality-Based Manufacturer Chargeback Related to damaged goods, recalls, shelf wear, or product complaints. |
CMQUNB(Invoice#) | Unbilled Quality Recall Chargeback Used when a recall or withdrawal wasn’t previously captured under standard quality deductions. |
Compliance Fees to Watch For
In addition to those deductions, Natural suppliers are also subject to operational compliance fees. These often go unnoticed until the deduction appears, but they’re directly tied to how well suppliers meet UNFI’s fulfillment expectations.
Fill Rate
UNFI expects a 95% fill rate on all POs. If suppliers fall below that threshold, they may face financial penalties—or even delisting if the issue persists. And if product becomes available after the order window has closed, it can’t be shipped without written approval. Sending product without approval—or after the customer has moved on—can result in further deductions.
If fill rate issues continue for more than two weeks, UNFI expects suppliers to submit a corrective action plan. Failure to act can result in ongoing deductions or delisting of the product altogether.
Overages and Missed Shipments
Sending more product than what was ordered or shipping the wrong item can lead to extra fees. UNFI might accept the extra product and charge a per-order overage fee, or it might reject the product entirely and bill back storage or disposal costs.
Suppliers have 14 days to make arrangements for the product once notified. After that, UNFI can dispose of the product and charge the full landed cost, plus additional handling fees. They won’t store overages indefinitely.
Receiving and Delivery Violations
Missed or late appointments can cause delays across UNFI’s supply chain. The company takes scheduling seriously, and late or unscheduled arrivals are billed accordingly:
Late (30+ minutes): $250
No appointment / unscheduled: $300
Rescheduled <24 hours: $300
No-show / no-call: $500
Additional deductions may apply for incorrect quantities, damaged shipments, or missing paperwork—all of which are recorded at receiving and deducted off-invoice.
How to Dispute a UNFI Deduction
If you believe a deduction was made in error or you have documentation to support a correction, you can file a dispute with UNFI. Natural suppliers are required to use the UNFI Natural Supplier Dispute Form 01012024.xlsb and submissions must be sent in Excel format (not PDF or screenshot).
Here’s what you’ll need:
Subject line: Dispute: [Brand Name], [Check #], [Deduction Invoice #], [Dispute Amount]
Excel file: Fully completed Dispute Form
Backup: Any supporting materials (BOL, invoice, contracts, emails, photos, etc.)
Once you have all the relevant documentation completed and ready to go, send it to Deductions@unfi.com to submit the dispute.
UNFI typically responds with a tracking number within two business days. From there, most disputes are resolved within 30–45 days, depending on documentation and internal review.
Once submitted, each dispute will be assigned a status to indicate where it is in the process:
Received – Form acknowledged, pending review
In Process – Under research by UNFI
Repayment Pending – Approved and awaiting final confirmation
New Invoice Requested – Documentation incomplete; supplier must resubmit
Denied – Repayment not approved
UNPAID on Account – Approved but not released
CK#: Zero Check – Deduction credited internally but requires A/P inquiry for payment
These statuses are updated weekly and sent automatically via email.
Common Deduction Scenarios and How to Respond
Issue | Recommended Action |
Deduction appears invalid | Submit Dispute Form with supporting documents. |
Shortage deducted, overage reported | Dispute deduction with Supplier Deduction Dispute management team, not via invoice. |
Overages shown, no deduction issued | Submit invoice and request to AP Research. |
Invoice submitted with an incorrect off-invoice allowance | Dispute and note “OI outside valid period.” |
Incorrect invoice pricing | Dispute with Supplier Deduction Dispute Management Team and explain discrepancy in the Dispute Form. |
Terms discount incorrect | Send research request to AP Research team (UNFI AP Natural Research Contact List July 2025.xlsx ) to dispute possible error. This may also be called, ‘early pay discount, % discount off invoice for terms’ etc. |
For any unpaid, past due, or cash discount issues, submit your inquiries to unfinaturalresearch@unfi.com for help.
How to Avoid UNFI Deductions in the First Place
The best way to minimize deductions is to get ahead of them. Most chargebacks trace back to preventable issues—especially with documentation, timing, and shipment setup.
Scheduling Best Practices
Request appointments early: 1 day for Natural DCs, 3 days for Conventional
Use the correct portal or email for appointment setup
Make sure all POs on the truck are listed in the confirmation
Late or unscheduled deliveries may be delayed—or denied—at the dock
Invoicing Accuracy
Submit one invoice per PO
Ensure invoice details match PO (quantities, price, item format)
List all allowances and charges clearly in the header
Do not use invoices to dispute deductions; use the designated dispute form
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.