While UNFI’s deduction codes can number in the dozens, most fall into a few broad categories. Here are the common deduction types that suppliers often encounter:

• Early Payment Discount: UNFI offers standard payment terms that include a discount for quick payment. A typical term is 2% 10, Net 30 – meaning if UNFI pays an invoice within 10 days, they take a 2% discount; otherwise full payment is due in 30 days. Almost always, UNFI will take that 2% discount on whatever invoices. This appears as a deduction (often labeled “Cash Discount” or similar) on your remittance. It’s an expected deduction – essentially the cost of getting paid quickly. Suppliers usually account for this in their pricing up front. There is generally no disputing this type of deduction, since it’s part of the agreed payment terms, but it’s important to be aware of it and factor it into your revenue calculations.
  
  

• Shortage Deductions (Short-Shipped Product): If UNFI receives less product than was invoiced (for example, you invoiced 100 cases but the distribution center only counted 95 on arrival), they will deduct the cost of the missing units. This is often labeled as “Shortage”  on the deduction backup. Essentially, UNFI is not going to pay for product they didn’t receive. To manage this, ensure your shipments are accurate and that you retain proof of delivery. If you believe the product was in fact delivered, you’ll need that documentation to dispute the deduction. Sometimes shortages occur due to damage in transit or receiving errors at the warehouse – those can potentially be recovered if you have evidence. Always compare the quantity UNFI received (per their receiving documents) to what you shipped, back-date and verify all shortages as an easily disputed source of revenue recovery.
  
  

• Delivery Non-Compliance Fees (Late/No-Show Fees): UNFI expects suppliers to deliver shipments on time and according to their scheduling requirements. If a truck arrives past the appointment window or misses the appointment, UNFI may charge a late delivery fee. These fees often operate on a sliding scale – the later the delivery, the higher the fee. Additionally, if a delivery is not properly coordinated (e.g. no appointment booked when required), there could be a “no-show” or unscheduled arrival fee. To avoid these, try and follow UNFI’s routing guides and appointment scheduling procedures. If a genuine external issue (like a weather event) caused a delay, communicate with UNFI’s receiving team immediately; they might waive or reduce the fee in some cases. However, once a late fee deduction is taken, you’ll typically need strong justification to dispute it successfully. A BOL or POD when documented properly can be a good source of this justification.
  
  

• Damages and Spoils (Unsaleables): This category of deduction occurs when product is delivered intact but later is found damaged or becomes unsaleable while in UNFI’s possession. For instance, if cases are crushed in the warehouse or perishable items spoil before they can be sold to retailers, UNFI will deduct the cost of that inventory as an “unsaleables” chargeback. In some cases, UNFI may inform you and give the option to pick up the damaged goods instead of them taking a deduction (especially for high-value items or those close to expiration). Many suppliers have an unsaleables allowance agreement with UNFI – for example, UNFI might automatically deduct a small percentage (say 1% of sales) to account for expected spoilage and damage. If actual damages exceed the allowance, you may see additional charges; if damages are lower, UNFI typically still retains the full allowance. The best way to manage this category is to ensure good packaging and sufficient shelf life on products, and to monitor the deduction reports. If you see an unusually large deduction for damages, ask UNFI for the backup documentation (they have a process for you to request detailed backup for each deduction). On receiving the backup, you can verify if the claim is legitimate or if, for example, the timeline suggests the product spoiled due to an unusually long hold time at their warehouse (which you might be able to dispute).
  
  

• Freight and Shipping Allowances: If your arrangement with UNFI involves them handling freight (for instance, UNFI picks up product from your facility), they often require a freight allowance – essentially a discount or deduction to cover their associated costs. This might be a fixed percentage or amount per pallet. It will show up as a deduction like “Freight Allowance” on invoices. This is typically pre-negotiated, so it shouldn’t come as a surprise. However, if you see a freight-related deduction that you didn’t expect – such as UNFI back-charging you for using their carriers without an agreed allowance – that’s something to investigate. Always clarify freight terms in your supplier agreement. If you ship FOB (free on board) meaning you cover freight, ensure you’re using UNFI’s preferred carriers or delivery windows; failure to do so could result in unexpected freight chargebacks if UNFI steps in to expedite a shipment.
  
  

• Administrative Fees (Compliance Charges): UNFI, like most distributors, has a list of compliance requirements (packaging, labeling, documentation, etc.). If you fall short on these, they may issue a fee. Common examples include: missing pallet labels, incorrect case pack configuration, late submission of a new item form, or other policy violations. These fees might be labeled generally as “Compliance Fee” or specifically (e.g. “Missing Label Fee”). Under the new SSA program, many of these are waived if you’re enrolled; but if you’re not in SSA (or the issue isn’t covered by SSA waivers), you’ll see them. Always review UNFI’s supplier policies (they publish a Supplier Policies document or fee schedule annually) to be aware of these potential charges. Prevention is key – if you know the rules, you can usually avoid infractions. When a compliance deduction does occur and you believe it’s in error (say, UNFI charged a fee for missing paperwork but you have proof you provided it), prepare that evidence for a dispute.
  
  

• Marketing and Program Deductions: These include a variety of deductions related to optional programs you participate in. For example, if you agree to an annual advertising program with UNFI (for placement in their promotions or catalogs), the fees for that program might be deducted quarterly from your invoices rather than invoiced separately. You might see a deduction labeled “UNFI Marketing Program” or a specific campaign name. Similarly, new store discounts or “intro allowances” (where you fund a discount to retailers on initial orders) could be deducted as a lump sum. Scan deductions are another – if you agreed to reimburse a retailer promotion that goes through at checkout (scan deal), UNFI fronts that discount to retailers and then deducts the amount from you. These types of deductions are usually part of doing business and agreed upon in advance, but it’s important to track them. Always reconcile that the deduction amount matches your expectation (for instance, if you agreed to $1,000 promo, make sure $1,000 is what was deducted, not more). If a marketing deduction doesn’t match an agreement, you may need to raise it with your UNFI supplier manager. Keeping detailed records of all trade promotions and deals you sign up for will help you verify these charges.
  
  

• Periodic True-Ups or Adjustments: Occasionally, you might see a deduction that is a catch-all adjustment. For example, “MCB” (Manufacturer ChargeBack) is a term UNFI uses for certain distributor deals with retailers – essentially, UNFI gave a discount to a retailer on your product (to drive sales) and is now passing that cost back to you. These often come periodically (e.g., monthly) and cover many transactions in one sum. UNFI provides backup documentation (often via email or an online portal) for these, since they encompass multiple stores and dates. If you sign up for UNFI’s MCB documentation service (by contacting their deductions management team), you can receive weekly or monthly files detailing each chargeback included in the MCB deduction. It’s wise to do so, because it gives transparency into whether those discounts were valid (e.g., were they for authorized promotions, correct amounts, etc.). With the backup in hand, you can decide if any portion was taken in error and should be disputed.