Just like any other major retailer, Lowe’s has an established process for deductions. Deductions are dollar amounts that are withheld from checks to suppliers because of some failure or perceived failure related to shipping/ordered quantities and compliance.
There are a variety of ways to understand deductions in the Vendor Inquiry app. The table below breaks it down by the Invoice # in the Invoice tab’s list, the Deductions tab’s list, and the Deduction #, as well as the tracking code.
Invoice # (Invoice List) | Invoice # (Deduction List) | Deduction # | Tracking Code | Description |
Invoice # | AD + [6 digits] | DT | Shortage | |
Invoice # | AD + [6 digits] | PRC | Cost Difference | |
CA + [6 digits] + P | CA + [6 digits] | CAP | CAP | Freight on Returned Merchandise |
CC + [6 digits] | DM + [6 digits] | CC + [6 digits] | CAP | Other |
CF + [5 digits] | DM + [6 digits] | CF + [5 digits] | CAP | CAP Freight Violation |
DM + [4 digits] + AL | DM + [4 digits] + AL | RTM | Return | |
DM + [4 digits] + DA | DM + [4 digits] + DA | RTM | Return | |
DM + [5 digits] | DM + [5 digits] | RTM | Return | |
DM + [5 digits] | DM + [5 digits] | DM + [5 digits] | FPD | Routing Guide Violation |
DM + [6 digits] | DM + [6 digits] | DM + [6 digits] | FPD | Routing Guide Violation |
Invoice # | DM + [6 digits] | DST | Labor Charges | |
DM + [6 digits] | DISC5 (?) | DM + [6 digits] | PMT | Discount Discrepancy |
DM + [6 digits] | DM + [6 digits] | DM + [6 digits] | STI | Legal |
DM + [6 digits] | DM + [6 digits] + P | DM + [6 digits] | 6NO | 6NO Allowance |
DM + [6 digits] | DM + [6 digits] + P | DM + [6 digits] | AWY | AWY Allowance |
DM + [6 digits] | DM + [6 digits] + P | DM + [6 digits] | CPG | CPG Allowance |
DM + [6 digits] | DM + [6 digits] + P | DM + [6 digits] | M20 | M20 Allowance |
DM + [6 digits] | DM + [6 digits] + P | DM + [6 digits] | PAC | PAC Allowance |
DM + [6 digits] | DM + [6 digits] + P | DM + [6 digits] | REC | REC Allowance |
Invoice # | DMH + [5 digits] | DT | SOS (Special Order Sale) Deduction | |
Invoice # | DM + [6 digits] | DT | SOS Deduction | |
DML + [5 digits] | DML + [5 digits] + P | DML + [5 digits] | VLS | Compliance Deduction |
Invoice # | DN + [6 digits] | DT | Auto-Shortage | |
Invoice # | DN + [6 digits] | PRC | Auto-Cost Difference | |
Invoice # | DN + [6 digits] | SOS | Auto-Deduction | |
Invoice # | EC + [6 digits] | SOS | Auto-Deduction | |
F + [5 digits] | DM + [5 digits] | F + [5 digits] | AUD | Audit Claim |
FR + [5 digits] | DM + [5 digits] | FR + [5 digits] | AUD | Audit Claim |
F + [6 digits] | DM + [6 digits] | F + [6 digits] | AUD | Audit Claim |
TR + [6 digits] | DM + [6 digits] | TR + [6 digits] | TRF | TRF Freight Violation |
Shortage Codes
Shortage vs. SOS Shortage:
Lowe's has two main ordering methods: Stock Purchase Orders and Special Order Stock
Purchase Orders or SOS Purchase Orders. Lowe's delineates between the two when it comes to deductions, however, there is not necessarily a difference in how they are deducted, or how a supplier would dispute.
Freight Charge/Violation
Unrelated to Compliance Fines that are deducted, Lowe's will also impose different freight charges for different infractions in the shipping process. This would also include Labor Charges.
Auto Deduction Codes
These deductions are enacted by the "Transactional Accounting" team, and primarily seem to be electronically/automatically deducted. This might also include deductions related to any electronically ordered PO's.
Compliance Deductions
Lowe's gives suppliers the opportunity to dispute fines prior to them being deducted. Once actually deducted, suppliers will typically see one lump deduction for that month. It can be disputed, but not often won back.
Allowance
Lowe's has several different Marketing/Infrastructure allowance programs. Unfortunately, you cannot see the line items on the deduction itself; most suppliers request specific details via Lowe's' ticketing process.