Target Disputing Best Practices for 2025

In this article, learn about: 

• Target’s updating redispute practices for suppliers in 2025 

• Which shipping documents are most relevant for disputing Target’s AP deductions 

• Strategic best practices for disputing Target deductions in 2025 

In the high-stakes world of retail supplier relations, managing deductions is crucial for protecting profit margins. Target, like any major retailer, employs a system of deductions that, while necessary for operational efficiency, often requires diligent attention and, at times, robust dispute filing and organization from its suppliers.  

As the volume of disputes increases, Target is tightening its rules, making adherence to best practices—and submitting a solid case the first time—more critical than ever. 

This article outlines the best strategies for disputing Target deductions, focusing on critical document requirements, submission limits, and nuances of the process. 

Disputing, Redisputing, and Dispute Limits at Target 

Suppliers at Target should treat each dispute as their best attempt to win it. Whereas some suppliers would dispute immediately and repeatedly, Target’s new point of emphasis is to avoid excessive disputing.  

There is the possibility that fines could result from excessive redisputing and, for some departments, the third dispute and beyond go to an AP analyst for review, meaning that there is likely to be limited traction on top of the possibility of fines after the third dispute.  

It is possible that Target will consider disputes after that number, but planning for disputes beyond three is not advisable. Each dispute should have an intended purpose, with the first one including all the supporting documents that Target would need to understand the disputed amount. 

The fourth attempt should be reserved as a last effort if you remain confident the deduction is invalid. Target has indicated they will begin charging fines for any deduction disputed for a fifth time or more.  

This impending policy shift means submitting incomplete or poorly documented cases could become a financial liability on top of already being wasted effort. Focus your energy and documentation on making the initial attempts successful, thereby preserving your limited "shots" and avoiding potential penalties. 

Which Documents Should I Use to Submit a Target Dispute? 

A dispute is only as strong as its supporting documentation. The cornerstone of the best practice is simple: Only submit disputes that have all recommended documents attached. 

Target’s platform is designed to guide suppliers through this process. All disputes required supporting documentation. 

Deduction Types and Recommended Documents for Target Disputes 

Different deduction codes require specific combinations of documents to prove a claim. The following table outlines the essential documents required for some of the most common deduction codes and types: 

Document Deep Dive: Understanding Nuances and Limitations  

To properly prepare your dispute, you must understand the specific requirements and limitations of the primary documents, particularly the Proof of Shipment (POS) and Proof of Delivery (POD). 

Accounts Payable Dispute POS/POD Considerations 

The specific supporting documentation required depends heavily on the method of shipment. 

1. Prepaid Shipment 

Prepaid shipments (where the vendor pays for/arranges shipping) require valid Proof of Delivery (POD). This consists of both the signed Bill of Lading (BOL) and the Delivery Receipt (DR), which is documentation Target has signed for the cartons received. 

Valid POD includes: 

• Carrier Signed Bill of Lading (BOL): This document must include the Ship From Location, Complete Delivery Street Address, Shipping Date, Department, Purchase Order, Location, and Carton/Pallet Quantity. 

• Target's Delivery Receipt (DR): This document is created at Target's Distribution Centers (DCs) and reports the amount of product scheduled to be delivered versus the amount actually received. The actual amount received is subject to adjustment by the DC's shipment receipt reconciliation process. Adjustments to the DR can be made until this reconciliation process is complete. This DR constitutes the legal Delivery Receipt for the shipment. Your carrier partner is the primary source for the Target DR, but it may also be requested via "Request a Copy" in Synergy if available. 

2. Collect Shipment 

Collect shipments (where Target pays for/arranges shipping) require valid Proof of Shipment (POS), which is documentation in which the carrier signed for the quantity received. 

Valid POS includes: 

• Complete Driver Signed BOL/Master BOL (MBOL): If product was shipped through a consolidator, you must provide the MBOL and all Supplemental BOL(s) associated with the Target load. 

• The information from the BOL/MBOL documents needs to tie to the invoice. 

• The MBOL/BOL is the document used to determine shortage liability. 

• For temperature-controlled product, a temperature monitoring record is required, including the associated Purchase Order (PO) and the recorded temperature at the time the product is loaded. 

3. Small Package Shipment (UPS & FedEx Ground) 

For Small Package shipments, the vendor is responsible for providing valid POD, as all relevant data is maintained by the shipper's account number. This responsibility applies regardless of freight payment terms (Prepaid or Collect) or the terms of sale. 

Valid POD includes one of the following: 

• Delivery Notification: Proof of Delivery (POD) from carrier's website. This must include the Ship From Location, Delivery Date, Valid Target Employee Signature, Complete Delivery Street Address (city and state alone are insufficient), Tracking Number, and Carton Quantity. 

• There needs to be a unique identifier on the delivery notification and/or invoice tying the two documents together (e.g., invoice # or tracking #). 

• Target's Delivery Receipt (DR) showing the received quantity. 

4. Direct to Store Shipment 

Drivers are required to wait until the shipment is fully checked in and POD has been provided. Drivers who choose to leave before this process is completed must accept any shortages noted by Target. 

Valid POD includes one of the following: 

• Store Sticker with Delivery Details. 

• Detailed Store Stamp with Delivery Details. 

Note: A blank store stamp or a valid Target employee signature alone is not considered valid POD. 

Procedural and Strategic Best Practices 

Beyond documentation, adhering to procedural rules and adopting a strategic approach are essential for success. 

1. General AP Synergy Guidelines 

When submitting any Accounts Payable dispute in Synergy, observe these strict rules: 

• Timeline Restrictions: Target will not research claims dated more than 18 months from the document date (the date shown on the check remittance, not the document post date). 

• Collect Shipments Deadline: Disputes for collect shipments MUST be submitted within 9 months of the shipping date to meet claim filing deadlines with Target's carriers. 

• Single Dispute per Document: Submit one claim and upload supporting documentation for each dispute; only one document number may be disputed per case. Submitting one dispute for multiple documents will result in a denied case. 

• Unpaid Invoices: All unpaid invoices must be researched in Partners Online (POL) prior to submitting a dispute. 

• Documentation Deadline: If proper supporting documents are not included, your case will be assigned back to you as "awaiting information from vendor status," and you will have 5 business days to add the necessary documents and assign the case back to Target. Failure to do so will result in the case being denied. 

• Processing Time: Allow a minimum of 30 days from the date received by Target for a response. 

• Penalties: A per document charge may be assessed for excessive requests or if invoices are found to have already been paid by Target. 

2. Strategic Dispute Focus 

• Dispute Limits: Only dispute the same deduction three (3) times. Save the fourth time as a last effort, as Target has indicated they will start charging fines after the fourth time (i.e., the fifth dispute and beyond). 

• Documentation Completeness: Only submit disputes that have all recommended documents. Use the "Ready" filter to ensure a dispute has all the recommended documents for disputing. 

• Chargeback Document: It is not advised to dispute anything with just the Chargeback Document. It is rarely enough proof to win back the dispute, as it only shows Target's support for why they took the deduction. 

• Return & Contractual Deductions: We recommend focusing on those that are called out as Likely Invalid. If a supplier feels confident other deductions are invalid, they should reach out to their buyer for approval before disputing. This avoids aggravating the supplier's relationship with Target. 

Recover Revenue Faster with SPS Commerce 

Effective deduction management is not merely a reactive process; it is a critical, proactive element of protecting your bottom line. Success in the Target dispute environment now hinges on two core principles: quality document retrieval and timely disputing.  

Suppliers can use SPS Commerce Revenue Recovery to stay compliant with Target’s AP dispute practices, saving time with strategic shipping document aggregation and auto-disputing.  

Get a free audit today to see if Revenue Recovery with SPS is right for your Target business.