UNFI deduction type
Unsaleables (damage & spoilage)
Chargebacks for product damaged or spoiled while in UNFI's possession, plus percentage-based allowances baked into your agreement.
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.
What is a unsaleables (damage & spoilage)?
An unsaleables chargeback applies when product is delivered intact but later found damaged or spoiled while in UNFI's possession — cases crushed in the warehouse, or perishables that spoil before sale — and UNFI deducts the cost.
Related to this are percentage-based allowances UNFI applies for spoilage, returns and merchandising — often called Fair Share or swell allowances — that are typically baked into your agreement as a flat percentage of purchases.
Why does it happen?
- Genuine damage or spoilage of your product inside the warehouse.
- Contractual Fair Share / swell allowances applied as a flat percentage of purchases.
- Product with too little remaining shelf life on receipt.
Is it disputable?
Often valid, so recovery rates are lower. Fair Share and swell allowances are usually non-negotiable and hard to reverse. Watch for unsaleables billed twice, quantities above what you shipped, or damage claims on product with valid delivery condition.
Backup you'll need to win it
- Shipment records and quantities
- Shelf-life / code-date documentation on receipt
- Your agreement terms for any Fair Share / swell allowance
You dispute UNFI deductions in the UNFI Dispute Center, inside the UNFI supplier portal. See the step-by-step dispute guide and check the UNFI dispute window before you file — miss it and even a valid claim is lost.
Find every disputable unsaleables deduction in your file
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Analyze my deductions — freeFrequently asked questions
What is a UNFI Fair Share allowance?
Fair Share (or swell) allowances are percentage-based deductions UNFI applies for spoilage, returns and merchandising, typically set in your supplier agreement as a flat percentage of purchases. They're usually non-negotiable.
When is a UNFI unsaleables chargeback disputable?
When it's billed twice, when quantities exceed what you shipped, or when damage is claimed on product received in valid condition. Valid spoilage itself is a genuine cost of distribution.
Related UNFI deductions
- UNFI shortage deductionsUNFI deducts for units it says it never received, or received against the wrong PO — a factual dispute that makes shortages the most recoverable UNFI deduction type.
- UNFI mcb deductionsPromotional discounts and trade programs UNFI funds and bills back to you — MCBs and off-invoice deals, verified against MCB backup you can request by email.
- UNFI new-item fees deductionsLaunch fees charged per SKU for each new distribution center — about $500 per SKU per DC (or ~$1,200 without UNFI's advertising agreement) — plus free-fill requirements.