Walter, we need to make more educational content.

Hey Vendorville,

SupplierWiki is cooking up some new content from the drug channel. At any retailer, there’s a plethora of deduction codes that can trip up suppliers when beginning the dispute process.

Understanding the meaning behind each code can help build out the context needed to understand and take action on retailer deductions.

At CVS, AP deductions are often referred to as Warehouse Payables. At CVS there are five major types of Warehouse Payables:

Allowance Deductions
Pricing Deductions
Shortages
Case Pack Deductions
Other: Cash Discounts, Taxes, and Fees

These buckets of deduction types have different codes for specific issues within them. Each specific code has both special prefixes and unique paths for disputing.

For example, if an invoice begins with the code OTIF, this deduction will specifically deal with On Time and In Full Supply Chain Performance. For this particular code, CVS points suppliers to email supplychainperformance@cvshealth.com for disputing.

If you are looking to dispute different codes at CVS, check out this article for a list of invoice codes and contact information.

Disputing in CVS’s Vendor Portal

Deductions that are disputable in the CVS Vendor Portal will have invoice numbers ending in V, W, or X.

The "W" at the end is meant to signify all AP deductions, and it can therefore be any of the above Warehouse Payables

SupplierWiki has an article outlining the dispute process at CVS. Here’s the TL;DR version of the best tips when fighting deductions at CVS:

Codes can be confusing. Know what you are disputing before you start. Each retailer has its own unique set of codes and rules.
The outcome lies with the documentation. With each deduction type, there’s a winning combo of documentation. For example, shortage deductions are more likely to be paid back when a copy of the debit memo(s) and the CVS signed POD of shipment(s) for each deduction being disputed are attached to the deductions.
Dispute, Review, Repeat. If at first you don’t succeed, figure out why. CVS has common reasons why they will deny a dispute. Create a workflow to review denied claims, apply learnings, and redispute.

Want more supplier education from the Drug Channel? Join our waitlist for CVS-specific content and more!

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Rick’s Tips 💘

“Target Suppliers Take Note! No more emails to merchants for Cost approvals.

There’s a central place for both supplier and buyer to see costs per item per location: the Item Maintenance (IMN) app in POL."

Let’s Circle Back 🌀

Y’all loved the supplier-coded version of Connections a couple of newsletters ago so we made you another one. This one is slightly harder, if you choose to accept a challenge. 😈

We highly recommend making one for the jargon your team uses every day. Unlike OTI, at least then you’ll get a 100%. Just kidding. 😉

❤️ Sincerely, Your Friends in Vendorville

SupplierWiki

If education’s the drug, then we’re the supplier