Macy's and Bloomingdale’s Accounts Payable Disputing and Deductions Types

In this article, learn about: 

• General accounts payable standards for Macy’s and Bloomingdale’s 

• The types of deductions at Macy’s and Bloomingdale’s 

• How to dispute by deduction type 

Understanding Macy’s accounts payable (AP) processes is essential for suppliers wanting to maintain a healthy relationship with the retailer. With more than 94,000 employees and an annual revenue of $25.3 billion as of 2023, Macy’s is the largest department store by retail sales in the United States, and as a result, preserving a good relationship could make or break a vendor’s bottom line. 

This article dissects the general AP standards that Macy’s uses for its suppliers, the common deduction types Macy’s uses, and how to successfully dispute them.  

General Accounts Payable Standards 

Macy’s requires vendors to manage all accounts-payable activity through Macysnet and to keep their company and shipping information current. The guidelines below outline how to access AP resources, where to direct questions, and what documentation vendors must provide when updating their profiles or disputing deductions. 

• Account activities can be managed through the Macysnet portal. You can register for an account on Macysnet here. 

• The details of most deductions are available via email for registered Macysnet users.  
  • The Expense Offset and Invoice Chargeback Descriptions document, which is available for Macysnet users, provides explanations for all expense offsets and invoice deductions, as well as which documents to submit for disputing deductions.  

• If you have questions, Macy’s operates a phone line called Ask an Analyst, which can be contacted between 1 and 4 PM EST, Monday to Friday at 513-782-1401. Questions can also be directed to vendorstandards@macys.com. 

• Any changes to a vendor’s shipping information, shipping locations, or any updates related to mergers, acquisitions, bankruptcy filings, company closings, or licensing agreements must be communicated via email to hvendor@macys.com at least 30 days before the effective date.  
  • Macy’s requires its vendors to confirm this information and send any follow-ups on official vendor company letterhead, signed by an authorized senior employee, to: 
    • Macy’s Accounts Payable 
      Attn: Vendor Masterfile Control Office 
      P.O. Box 8251 
      Mason, OH 45040 
  • The following information must be included in the updates: 
    • Parent company name 
    • Company name 
    • Macy’s account number 
    • Macy’s entities affected by the updates 
    • Company address 
    • Description of change 
    • Effective dates 

Any mergers, splits, and/or acquisitions also require copies of all supporting legal documentation, including a validation from GS1 for purchased company’s GS1 company prefixes 

Types of Deductions at Macy’s and Bloomingdale’s 

There are a few different types of deductions that suppliers can expect to encounter from Macy’s.  

Negotiated/Expected 

These deductions stem from terms in contracts and standing allowances and are typically taken by design. These can include: 

• Freight allowances 

• Logistics handling allowances for Puerto Rico, Hawaii, or Guam shipments 

• Excise taxes 

• Any standard purchase order (PO) level discounts 

Invoice Deductions 

Invoice deductions consist of mismatches or administrative errors on the invoices or receipts. These can include: 

• Shortages (carton/unit) 

• Cost differences on the invoice versus the PO 

• Duplicate invoices 

• Quantity discrepancies between the invoices and the Advance Shipping Notice (ASN) 

• Proof-of-delivery holds 

Compliance Fines 

Fines for compliance-related issues occur when a supplier breaks an operational rule of Macy’s. These deductions can stem from: 

• Late or unusable ASNs 

• Missing or incorrectly placed GS1-128 barcodes 

• Problems with the Universal Product Codes (UPCs) or price tickets 

• Issues with hangars, size strips, or set tags 

• Failure to consolidate ASNs or shipments 

• Shipments sent to the wrong facility 

Audits and Returns 

Deductions for audits or returns happen in situations when Macy’s deems the goods unacceptable or when an audit or inspection is triggered. These situations can include: 

• Dock refusal of goods 

• Multiple invoices with the same PO or BOL 

• Hidden item substitutions rejected at the point of service 

• Unordered merchandise or overages 

Freight and Transportation Claims 

Freight and transportation claims result from transportation charges that do not affect the invoice. These can include: 

• Deadhead miles 

• Layovers 

• Trucks Ordered Not Used (TONU) charges 

• Prepaid vendors shipping collect 

• Failure to consolidate loads on consecutive or same-day moves 

• The use of unauthorized air carriers 

Disputing Chargebacks at Macy’s 

Macy’s AP expense offsets and invoice deductions have code-specific documentation rules. As a rule of thumb, anything tied to quantities/receipts needs the invoice plus a stamped POD; price/cost disputes need buyer authorization; routing or late-ASN issues sometimes ask for a signed BOL; and many floor-ready/labeling violations list no attachments in the AP form at all. Certain allowances are non-disputable by location.  

All deduction disputes must be submitted to Macy’s via the accounts payable forms on Macysnet. Supporting documentation must be attached to the accounts payable form inquiry. All supporting documentation and inquiries must be submitted within 60 days of the deduction date. 

Macy’s does not reimburse any incurred freight charges by the vendor. Any invoices submitted to Macy’s that include freight charges will be paid net of freight, with the freight charge removed when paying.  

Macy’s will issue a deduction if receipts cannot be verified for invoices. In that case, a deduction with a description of DM-POD REQ will appear on the vendor’s Macysnet account, which serves as a notification for the vendor to submit the required Invoice Non-Payment/POD Dispute accounts payables form. Along with this form, vendors should also submit a copy of the invoice and POD, including the street address, to dispute this deduction. A valid POD for invoice shortages and/or non-payment must include a signed bill of lading (BOL) or a small package tracking confirmation, along with the full delivery address. 

All other types of disputing outside of invoice shortages should be submitted as a spreadsheet, sectioned by Macy’s division and dispute type, and attached in a single inquiry. The dispute forms for cost difference deductions and markdown allowance deductions are automatically routed to the appropriate Macy’s merchant, who will then respond to the inquiry themselves. 

Related Reading: What Is Deductions Management? 

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