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TARGET DEDUCTION CODES EXPLAINED: A COMPLETE OVERVIEW
By : iNymbus
| October 1, 2024
| Target Deduction ,
Target Partners Online ,
Target Deduction Codes
Target Corporation, one of the largest retailers in the United States, uses a
detailed system of deduction codes to effectively manage deductions from vendor
payments. These codes address issues such as vendor errors, non-compliance, and
other discrepancies, helping maintain efficiency and accountability in its
supply chain operations.
For vendors working with Target, understanding these deduction codes is
important to effectively manage disputes and reduce financial impact. This guide
provides an overview of Target's deduction codes, their categories, common
reasons, and dispute instructions.
WHAT ARE TARGET DEDUCTION CODES?
Target deduction codes, also known as reason codes, are specific identifiers
that Target uses to categorize financial adjustments made against a vendor's
payment. These deductions can result from non-compliance with Target's policies,
shipping errors, or other contractually agreed-upon terms. The purpose of these
codes is to provide clear communication about the reason for the deduction,
allowing vendors to address and resolve any disputes.
CATEGORIES OF TARGET DEDUCTION CODES
INVOICE MATCH DEDUCTIONS:
Deductions related to discrepancies between what was invoiced and what Target
received. Common reasons include carton shortages, damage or defective goods,
unit shortages, cost differences, and unauthorized substitutions.
These deductions, also known as accounts payable deductions, are the most common
types of deductions that are issued by the Target.
DEDUCTION CODES:
* A030 - Carton Shortage: Deduction for invoice-receipt difference due to
carton shortage.
* A032 - Damage/Defective: Deduction for invoice-receipt difference due to
damaged/defective products.
* A034 - Unit/Internal Shortage/Casepk: Deduction for invoice-receipt
difference due to unit shortage or case pack issues.
* A036 - Cost Difference: Deduction for invoice-receipt difference due to cost
discrepancies.
* A038 - Substitution: Deduction for invoice-receipt difference due to item
substitution.
* A176 - Auto Chargeback: System-generated deduction for invoice-receipt
differences (Shortage, Cost, Substitution, Case Pack).
VENDOR PERFORMANCE DEDUCTIONS:
Deductions focused on the vendor’s performance, including on-time shipments,
fill rates, and ASN (Advanced Shipping Notice) availability. These ensure
vendors adhere to Target's supply chain performance expectations.
DEDUCTION CODES:
* On Time Ship - Collect: Deduction for late pickup availability.
* On Time Ship - Prepaid: Deduction for late delivery to Target Distribution
Center.
* Fill Rate/SIFR - Original: Deduction for receipt mismatch with original order
quantity.
* Fill Rate/SIFR - Revised: Deduction for receipt mismatch with revised order
quantity.
* EDI 856 Availability: Deduction for late or erroneous ASN.
FREIGHT DEDUCTIONS:
Deductions related to non-compliance with Target's freight and shipping
policies. These include using unauthorized carriers, incorrect shipping weights,
expedited freight charges without approval, and shipping delays.
DEDUCTION CODES:
* TR08 - Backorder: Unapproved multiple shipments for PO/location.
* TR09 - Assessorial Charges: Failure to pay origin assessorial charges.
* TR11 - Expedited Freight: Vendor payment for expedited freight charges.
* TR14 - Freight on Returns: Vendor payment for return merchandise freight.
* TR15 - Domestic Sort and Seg: Improper PO shipment to Consolidator.
VENDOR INCOME (VI) & PROMOTIONAL DEDUCTIONS:
Deductions that occur due to vendor income agreements or promotional activities,
such as Target Circle offers or allowances linked to sales-based contracts.
These are governed by Target's income systems.
DEDUCTION CODES:
* VCNA - Vendor Income Funding: TVI contract accepted by vendor and Target.
* VCPN - Target Circle Offers (In-store): Redeemed Target Circle Offers in
store.
* VIAP - Vendor Income Funding (Sales Based): Specific Sales Based Contracts
deductions.
* VONL - Target Coupon Deductions: Manual online process for Target coupons.
* VSUP - Target Circle Offers (Online): Redeemed Target Circle Offers online.
AUDIT DEDUCTIONS (THIRD-PARTY AUDITORS):
Deductions that are managed by third-party audit firms like PRGX and Cotiviti.
These deductions focus on compliance with merchandising, pricing, and freight
practices as per Target’s contractual obligations.
DEDUCTION CODES:
* 90C - Cotiviti Non-Vendor Income: Merchandise chargebacks by Cotiviti.
* 90SF/90SG/94S/94SG/94SS PRGX Audit: Various PRGX merchandise and statement
chargebacks.
RESPONSIBLE SOURCING & ETHICAL COMPLIANCE DEDUCTIONS:
Deductions related to violations of Target's Responsible Sourcing and
Sustainability (RS&S) guidelines. These involve issues such as unauthorized
subcontracting, production in non-compliant factories, and denied audits.
DEDUCTION CODES:
* Denied Audit: RS&S auditor or third party representative is denied access to
conduct a compliance audit at a factory.
* Unauthorized Subcontracting: A production factory/location in scope of the
RS&S program was not disclosed to and/or approved by Target before production
began.
* Production in a Non-compliant Factory: Production in scope of the RS&S
program occurred in a Non-Compliant factory.
MISCELLANEOUS DEDUCTIONS:
This category covers deductions that do not fit into the other specific
categories. It includes unique or less common reasons, special cases, or fees
that are not easily categorized.
HOW TO DISPUTE TARGET DEDUCTIONS
Disputing a deduction with Target involves specific steps depending on the
category of the deduction. Vendors are required to follow a standardized process
to ensure their dispute is reviewed and processed correctly:
1. Review the Deduction: Carefully examine the deduction notice and supporting
documentation provided by Target. Understand the reason for the deduction
and check against your records to identify any discrepancies.
2. Open a Dispute Case in Synergy: Target utilizes the "Synergy" from Target's
Partners Online platform for managing deduction disputes. Vendors must open
a dispute case in this system, providing all necessary documentation,
including proof of compliance, approvals, and any correspondence that
supports their claim.
3. Contact the Relevant Target Team: Depending on the deduction category,
contact the appropriate Target team via email for further assistance. For
instance:
* For invoice-match or accounts payable deductions, use the "Synergy".
* For freight-related prgx deductions, email prgx.target@prgx.com.
* For Responsible Sourcing chargebacks, review the information in
Inspectorio and contact Responsible.Sourcing@target.com.
4. Request Additional Backup Documentation: If necessary, submit a "REQUEST FOR
COPY/INFO" case in Synergy and select the appropriate request type, such as
"Proof of Return" for return-related deductions.
INYMBUS FOR TARGET DEDUCTIONS:
iNymbus is designed to streamline Target deductions by automating time-consuming
and error-prone processes. By leveraging Robotic Process Automation (RPA),
iNymbus automates each step of the Target workflow, including claim initiation,
validation, and resolution along with payment reconciliation.
WHY CHOOSE INYMBUS:
30x Faster Dispute Processing: From writing descriptions to fetching all
required documents and uploading them to retailer portal, iNymbus automates the
process of filing the claim, making it up to 30x faster.
40+ Retailer Support: iNymbus supports 40+ retailers and has built-in knowledge
of retailer-specific deduction and dispute processes. This ensures that all your
deduction management needs are met.
Scalability and Flexibility: We offer scalability and flexibility to meet your
unique business needs. This allows businesses to tailor the solution to their
specific needs.
Advanced-Data Analysis: iNymbus provides in-depth data analysis to identify
trends and root causes, empowering proactive deduction management strategies.
TAGS:
deduction management software Target Deduction Target Shortages Target Claim
Target Deduction Target Partners Online Target Bot Token
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TARGET’S LATEST INITIATIVE TO SUPPORT AUTOMATION- INTRODUCES “TARGET’S BOT
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TARGET DEDUCTIONS: EVERYTHING YOU NEED TO KNOW- INYMBUS
Welcome to our comprehensive guide on understanding and managing Target
Deductions. As a vendor, comprehending the significance of these deductions
FREE DEDUCTIONS/CHARGEBACK ANALYSIS
Ready to learn more about how iNymbus uses cloud robotic automation to resolve
and dispute various retailer and shipper claims? Get a complimentary
Deductions/Chargeback Audit which will include an overall ROI for implementation
of DeductionsXchange. No risk or obligation.
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