Types of Kroger Deductions: Everything You Need to Know

Who Is This For?

Kroger suppliers who want to understand:

• What are the main types of Kroger deductions, and what causes them

• Which deduction types can be disputed through the Lavante portal, and which cannot

• Where to send claims depending on the deduction type

• How to resolve each deduction type faster and avoid repeat chargebacks

If Kroger has ever reduced a payment without a clear explanation, you are not alone. Kroger uses a structured deduction system to reduce invoice payments for issues ranging from promotional allowance mismatches to shipping shortages to post-audit recoveries.

The problem is that each deduction type has its own codes, its own contact, and its own resolution process. Without a clear map of how the system works, suppliers end up chasing the wrong portal or emailing the wrong team entirely.

This guide breaks down every major type of Kroger deduction, what triggers it, and exactly what to do about it.

What Are the Main Types of Kroger Deductions?

Kroger deductions fall into several distinct categories. Each type has a different root cause, a different set of codes on your remittance, and a different path to resolution.

What Are Promotional Allowance Deductions?

Deduction codes: OI (Off Invoice), NA (New Store Allowance), KSD, KSI, KSP, KSR (KATS Promotional Errors), PC, PSD, PSI, PSP, PSR (Scan or Coupon Errors)

Promotional allowance deductions are among the most common types Kroger suppliers encounter. They occur when there is a mismatch between the promotional terms the supplier agreed to and what Kroger's system has on record.

Common triggers include incorrect promotional rates entered in Kroger's system, item setup errors, promotions running outside of approved dates, or performance that does not meet the agreed-upon criteria.

Example cases:

• DEAL123456-2024-04-01: Promotion rate was input incorrectly in Kroger's system, triggering a deduction for over-allowance

• 092-A1245-01256: Scan allowance rejected because the promotion ran outside the approved dates

What Are Shortage, Damage, and Overage Deductions?

Deduction codes: SH (Shortage), RT (Return Issues), OV (Overage)

This deduction type reflects Kroger's claim that items received were either missing, damaged, or exceeded what was ordered. Shortage deductions are the most frequent subset and occur when Kroger's receiving count does not match the supplier's invoice.

Example cases:

• INV12345-CM: Invoice was submitted for 100 units, but Kroger recorded receipt of only 92, triggering a deduction for the 8 missing units

• RCX12333-125365: Kroger store flagged cases as damaged and initiated a return deduction

What Are Item or Invoice Not Received Deductions?

Deduction codes: EC (EDI Non-Compliance), WV (Wrong Vendor), MR (Medturn Returns)

These deductions occur when Kroger's system does not receive your invoice or item information due to technical errors, misrouted data, or system mismatches. EDI non-compliance is a particularly common trigger and happens when an EDI 810 invoice fails due to formatting errors and gets rejected before it ever enters Kroger's payables system.

Example cases:

• AUTO-DM-INV12345: An EDI 810 invoice failed due to a formatting error and was rejected entirely

• mpd09019538: A return was handled under Medturn but not properly linked, leading to an item not received claim

What Are Net or Total Dollar Difference Deductions?

Deduction codes: CD (Cash Discount), LC (List Cost), SP (Stop Payment)

These deductions appear when Kroger applies unexpected cash discounts or pricing adjustments that reduce the total payable invoice amount below what the supplier expected. Cash discount deductions are especially common when early payment terms are in play but were not factored into the supplier's accounts receivable expectations.

Example cases:

• A $10,000 invoice was reduced to $9,800 due to a 2% early payment discount coded as CD that the supplier did not anticipate

• A pricing mismatch between the invoice and the agreed list cost triggers an LC adjustment

What Are Post Audit Deductions?

Deduction codes: H series (Cotiviti), R series (PRGX), V series (Internal Kroger or PRGX)

Post audit deductions are backward-looking recoveries where Kroger or its third-party audit firms review historical invoices and payments to identify overpayments, pricing errors, or missed allowances. Kroger uses two primary third-party audit partners for this purpose: Cotiviti and PRGX.

What Are Reclamation and Return Deductions?

Deduction codes: RCX series, DMQAUTH, V series, DDD-PS-######, ddd-F####

Return and reclamation deductions cover a range of scenarios, including product removed from a fulfillment center or DC and billed back to the supplier, store-level returns, and Form 40 returns. The invoice format on your remittance is the clearest signal of which type you are dealing with.

What Are Coupon Deductions?

Deduction codes: RC series, C series, 060-C series, 200 series, 5########_######

Coupon deductions represent Kroger's recovery of coupon redemption costs from suppliers. These come through several different invoice formats depending on whether they originate from electronic coupons, NCH coupons, or Kroger's internal system.

Which Deduction Types Can Be Disputed Through Lavante?

The Lavante portal is Kroger's primary platform for deduction claims and backup requests, but not every deduction type is accepted there. Submitting the wrong claim type through Lavante results in automatic closure.

Accepted on the Lavante platform:

• Peyton and warehouse payables for 5-digit POs

• Unpaid invoices for Peyton and warehouse POs

• ORAD late ship and case fill invoices

• FT Peyton freight claims

• 701 series claim,s including non-compliance invoices

• Fred Meyer non-food 8-digit POs

• DSD payables for non-PO shipments

• Manufacturing plant payables that are non-COUPA

Not accepted on Lavante, and where to send them instead:

Stop Letting Kroger Deductions Drain Your Revenue

Kroger deductions add up fast, and the complexity is by design. Each deduction type has a different contact, a different portal, and a different resolution process. Sending a post-audit claim to Lavante when it belongs with PRGX results in automatic closure. Missing a dispute window means the deduction stands, no matter how invalid it was.

Without a clear internal process for identifying codes, pulling backup documents, and routing claims correctly, revenue leaks quietly through your remittances every single month.

That is exactly the problem iNymbus solves. iNymbus connects directly with Lavante, PRGX, and the Partner Portal to pull deductions automatically, match backup documents to each claim, and file disputes through the right channel without any manual work from your team.

Ready to stop chasing Kroger deductions across portals? Schedule a free demo with the iNymbus team today.