Reference
Deduction reason codes explained
Every deduction comes with a reason code — the buyer's shorthand for why they withheld money. Decoding it is the first step to knowing whether it's disputable.
Ledger Deduction Recovery Team · Deduction recovery specialists working with emerging & mid-market CPG brands
Last reviewed: August 4, 2026
Educational content — not legal, tax, or accounting advice. Verify deadlines and fee details against your current distributor agreement before disputing.
A reason code (or deduction code) is the identifier a retailer or distributor attaches to each deduction. Retailers lean on large numbered systems — Walmart has 100+ codes, Target 250+ — while distributors like KeHE and UNFI use named categories such as shortage, MCB, spoils and fill-rate.
Codes matter because they map to a dispute path. A shortage code points you to your BOL and proof of delivery; a pricing code points you to your PO; an MCB points you to the deal sheet. Learn the code and you know what evidence wins.
Want to look up a specific charge?
Use the deduction reason-code lookup →KeHE deduction categories
UNFI deduction categories
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Analyze my deductions — freeFrequently asked questions
What is a deduction reason code?
A reason code (or deduction code) is the identifier a retailer or distributor attaches to each deduction. Retailers use large numbered systems — Walmart has 100+ codes, Target 250+ — while distributors like KeHE and UNFI use named categories such as shortage, MCB, spoils and fill-rate.
Why do deduction codes matter?
Codes map to a dispute path. A shortage code points you to your BOL and proof of delivery; a pricing code points you to your PO; an MCB points you to the deal sheet. Learn the code and you know what evidence wins.
How do I look up a deduction code?
Use the free reason-code lookup tool to search any KeHE or UNFI charge — 'spoils', 'MCB', 'fill rate', 'slotting' — and see what it means, whether it's disputable, and how to fight it.