Deduction type
Manufacturer chargebacks (MCB)
A promotional discount a distributor gives a retailer and bills back to the manufacturer — often with a processing fee on top.
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 manufacturer chargeback (MCB) is a discount a distributor extends to one of its retailer customers and then bills back to you, the manufacturer. Distributors frequently add a processing fee on top of the passed-through discount — KeHE, for example, has applied an 8% MCB fee with a $65-per-DC minimum.
Valid, authorized MCBs are a legitimate cost of doing promotions. The recoverable ones are duplicates, MCBs applied outside the agreed dates or SKUs, and MCBs claimed with no authorization on file.
Controlling MCBs comes down to matching every chargeback to an approved deal — which is exactly the reconciliation most brands don't have time to do line by line.
Selling through KeHE? See how manufacturer chargebacks (mcb) work at KeHE, including the specifics and how to dispute them in K-Solve.
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Analyze my deductions — freeFrequently asked questions
What does MCB stand for?
Manufacturer chargeback — a promotional discount a distributor gives a retailer and then bills back to the manufacturer, typically with a processing fee. (In pharma, MCB means managed care billing — a different context.)
When is an MCB invalid and recoverable?
When it's billed twice, applied outside the agreed dates or to the wrong SKUs, or claimed with no authorization on file. Matching every MCB to an approved deal is how you find these.
Other deduction types
- Shortage deductionsA charge for units the buyer says it didn't receive against your invoice — one of the most recoverable deduction types because it turns on delivery documentation.
- Pricing & deal discrepanciesShort-pays where the buyer paid a different price than invoiced, or applied a deal you didn't agree to — among the most recoverable deduction types.
- Fill-rate / service-level penaltiesA penalty for shipping fewer units than were ordered — distinct from a shortage at receiving, and typically a percentage of the shorted value.