How to Dispute Deductions at Walgreens
By Parker Johnson, Associate Product Manager
Last Updated February 12, 2025
In this article, learn about:
Types of Walgreens deductions
How to dispute Walgreens deductions
The documents needed to dispute deductions
Disputing deductions at Walgreens can be challenging – especially since every dispute must be handled via email. Unlike some retailers that use highly detailed deduction codes and platforms, Walgreens sorts deductions into broad categories, meaning suppliers need to work within a general framework when disputing charges.
This article breaks down the key types of deductions, how to dispute them, and the necessary documentation for a successful resolution.
Understanding Walgreens Deduction Types
Suppliers can find a complete list of these deduction types in the Walgreens Excel Download from the VAIS portal. Below is a breakdown of each deduction type and what it means:
1. Shortages (Quantity Debit Note): A shortage occurs when Walgreens reports that they received fewer units than what was originally invoiced.
2. Pricing Deductions: These occur when the amount on the invoice differs from the agreed-upon price. Misunderstandings in pricing agreements, mistakes in the creation of invoices, or delays in implementing price adjustments can all lead to pricing deductions.
3. Damages/Defectives: This category applies when Walgreens receives items that are damaged, defective, or otherwise unsellable. These deductions usually relate to manufacturing flaws, physical damage, or quality issues found at the time of receipt.
4. Compliance (Cost Recovery): Occurs when suppliers fail to fulfill Walgreens' operating standards, such as mislabeled products, improperly packaged goods, late deliveries, or other logistical infractions.
5. Post Audits: Walgreens makes post audit deductions after reviewing transactions in the past to find anomalies like overpayments, unused allowances, or unclaimed discounts. These audits make sure that all financial transactions follow the terms and circumstances that have been agreed upon.
6. Allowances: Allowances refer to agreed-upon financial incentives or discounts provided by suppliers to Walgreens. Most suppliers seem to avoid calculating these charges on their own when invoicing and instead let the retailer take the deduction under the assumption that the majority will be valid and expected.
7. Returns: This deduction relates to goods that Walgreens sends back to the supplier, frequently as a result of product recalls, overstock, or expired goods. The cost of these returned goods is covered by the related deductions, which may also include extra handling or processing charges.
Disputing Walgreen Deductions
When it comes to disputing deductions at Walgreens, all disputes are done through email.
For the Below Section, we will assume all are being disputed based on DC Delivery.
Shortages
When disputing shortage deductions at Walgreens, all discrepancies fall under a single broad category called "Quantity Debit Note." Walgreens does not differentiate between types of shortages, so all claims must be addressed within this general classification.
These deductions are disputed through DanvilleVendor.Relations@Walgreens.com
What's Required:
Walgreens only mentions needing a Proof of Delivery (POD) in official documentation.
While Walgreens officially requires a POD for such disputes, suppliers have found success by submitting a Bill of Lading (BOL) when a POD isn't available.
A copy of the original invoice and an Excel file of the deduction from the VAIS (3S) portal can strengthen your case.
For the most efficient review process, include the invoice number, PO number, deduction $ amount, and deduction type in the email body. Providing these details upfront helps Walgreens quickly assess and process the dispute.
Pricing
These deductions are disputed through DanvilleVendor.Relations@Walgreens.com
What's Required:
Walgreens only mentions needing a POD in official documentation.
Other files that help include a copy of the original Invoice, BOL, an excel file of the deduction from the VAIS (3S) portal, and any pricing agreements that may back up the price you are disputing.
For the most efficient review process, include the invoice number, PO number, deduction $ amount, and deduction type in the email body. Providing these details upfront helps Walgreens quickly assess and process the dispute.
Damages/ Defectives
These deductions are disputed through DanvilleVendor.Relations@Walgreens.com
What's Required:
No official documentation is required, but any relevant communication or agreements outlining the terms for damaged or defective items may help support the dispute.
For the best chance of resolution, include the invoice #, deduction $ amount, and deduction type, along with an explanation of why this deduction is incorrect.
Compliance (Cost Recovery)
These deductions are disputed through SupplyChain.Compliance@Walgreens.com
What's Required:
Walgreens requires a vendor_dispute_form.xlsx to be sent with the following:
Case ID, PO #, Reason for Dispute, and any supporting photos or documents attached in separate tabs.
Forward the original violation notification email from Walgreens as part of your dispute.
If you do not have access to these violation emails, you may need to work with your Walgreens admin to get included in these communications.
Walgreens considers these valid reasons for disputing compliance:
Shipped in Full/Delivery Misinformation: Provide a signed and stamped POD or appointment confirmation.
STIBO Issues/Discontinued Item: Provide email correspondence with Walgreens documenting the issue.
Post Audits
These deductions are disputed through DanvilleVendor.Relations@Walgreens.com. Alternatively, PostAudit@Walgreens.com is mentioned as an option on other documentation.
What's Required:
No official documentation is required, but any relevant communication or documents detailing the agreed terms for returns may help support the dispute.
For the best chance of resolution, include the invoice #, deduction $ amount, and deduction type, along with an explanation of why this deduction is incorrect.
Allowances
These deductions are disputed through DanvilleVendor.Relations@Walgreens.com.
What's Required:
Provide an explanation as to why this allowance is not agreed upon, or calculated incorrectly.
This can be proven through any formal allowance agreements.
In the email, it is best practice to include the invoice number, deduction $ amount, and deduction type, along with an explanation of why this deduction is incorrect.
Allowances also typically have a Deal Contents Report Number which is worth including.
Your Sales Contact will be able to help with further assistance if needed.
Returns
These deductions are disputed through VendorRelations.Returns@Walgreens.com.
What's Required:
No official documentation is required, but any relevant communication or documents detailing the agreed terms for returns may help support the dispute.
For the best chance of resolution, include the invoice #, deduction $ amount, and deduction type, along with an explanation of why this deduction is incorrect.
Best Practices for Disputing Walgreens Deductions
Clarity and consistency are crucial when contesting deductions at Walgreens. In the event of a dispute, keep the subject line the same across all emails. Although Walgreens frequently replies in separate threads, this keeps everything organized. Keep communication clear and direct because dispute reviews are outsourced; the more succinct and thoroughly documented your email, the better.
The email body should contain the invoice number, PO number, deduction amount, and deduction type. Walgreens can find and handle your dispute more quickly if you include vendor numbers or document IDs. By following these best practices, suppliers can cut through the noise, keep disputes moving, and recover lost revenue faster.
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