Here’s a slightly uncomfortable truth: retailers are already benchmarking you. They benchmark your on-time performance, your fill rates, your chargebacks, your defectives, and your responsiveness when something goes wrong. Programs like On-Time In Full (OTIF) can assess penalties of around 3% of the cost of goods for shipments that are late, early, or incomplete. Some retailers’ chargebacks range from 1–5% of gross invoice when suppliers don’t follow routing guides. 

On paper, your deduction report looks clean. You see totals by retailer, maybe a breakdown by code or reason. Someone tells you, “We’re running at about 2% of sales in deductions—pretty typical.” You nod, move on to the next slide, and feel reasonably at peace.

If you’re a chief financial officer (CFO), you probably have a sixth sense for where money hides. You can sniff out bloated trade spend, slow-moving inventory, and overhead creep from a mile away. But there’s one place even sharp finance leaders quietly overlook: the deduction line.

Holiday returns are here—and how you classify them decides whether you pay for them later. You must separate true defective  products from shipping damage  or policy abuse  (like “used once, then returned”) before retailers reset your “excessive defectives” rates. What’s at stake:  the wrong label today can lock in higher return allowances or additional chargebacks for months. Fictional example (for illustration):  A home electronics brand treated all returns as “defective.”

Promotions move product. They also generate deductions if your math or your proof is fuzzy. The goal: make promotional allowance deductions match the plan—no more, no less—and be ready to win the audit later.

Cyber Monday is a rocket booster for sales—and a magnet for deductions. When orders surge, small disconnects in marketplace fee math, split shipments, or “porch piracy” claims can snowball into accounts payable (AP) headaches and post-audit chargebacks.

Black Friday moves fast. Price files, promotions, and point-of-sale (POS) syncs don’t always move with it. When they don’t, you get price claims and invoice debits.

Short week. Fewer people. Same (or more) shipments. This is when small misses become expensive. Fictional example (for illustration):  A candy supplier shipped on Thursday with no “owner backup.” A Friday receiving window moved; no one was watching. The truck missed, and On-Time In-Full (OTIF)  penalties landed. A two-minute handoff would have prevented it. Your preflight before you log off Shipment holds & gates:  Reconfirm receiving hours and blackout dates for all active p

Advance Ship Notice ( ASN ), Uniform Code Council-128 ( UCC-128 ) carton labels, and distribution center ( DC ) mix decisions decide whether your loads glide through—or get hit with negative acknowledgments ( NAKs ) and compliance chargebacks. Why it spikes in Q4.  More promotions. More split purchase orders ( POs ). More DC reassignments. More ways your plan breaks. Fictional example (for illustration):  A home goods supplier shipped on time, but their ASN posted after gate-

Black Friday doesn’t just test your demand plan—it stress-tests your price files, order flow, and shipping logic at the same time. Miss one sync or let a small error ride, and you can trigger a mass event: hundreds of price claims, a wave of canceled purchase orders (POs), and split shipments that later look like shortages.

Black Friday can make—or quietly drain—your year. Not because shoppers didn’t show. Because your price files, promo proofs, and terms confirmations didn’t lock before the doors opened, when they’re off, you don’t get a few invoice issues—you get a mass event: price variances across every store, on every unit, all weekend long. That’s how great promotions turn into invoice claims on Monday.

If you’re staring at December 31 and thinking, “We’ll clean up deductions after the holidays,” here’s the friendly nudge: don’t. A slow dispute now becomes a write-off later.

Peak inbound season is a gift to sales—and a stress test for your operation. When docks are stacked and teams are sprinting, shortage deductions  climb. Not because your product vanished, but because counts, paperwork, or scans didn’t line up under pressure. Let’s keep your December revenue from becoming January deductions. Here’s how to tighten counts, Proof of Delivery (POD) , and research packages so you can prevent  shortages—and win  disputes when they pop. What’s at sta

Holiday promotions should lift velocity and win new households. Too often, they lift deductions  instead. The difference usually isn’t intent—it’s structure. When limited-time offers (LTOs)  aren’t framed cleanly, co-operative advertising (co-op) , market development funds (MDF) , and scan allowances  can boomerang months later as retail chargebacks  and post-audit recovery  headaches. Let’s keep your promo dollars working for  you—not against you. What’s really at stake Marg

January is busy for returns. The debits don’t always arrive in January, though—that’s the trap. Post-audit claims can surface months (even years) after the original transaction, when AP audit teams and third-party firms comb through pricing, allowances, and returns policies. Scale matters: retailers expect $849.9B  in returns this year, with online return rates significantly higher than in-store. Some reports peg online returns around 19%+  in 2025; other analyses show mid-20

Black Friday moves fast—and so do deductions. High-velocity sales amplify tiny setup mistakes into thousands of small, painful hits on your remittance.

Promotions drive trial. They also drive split shipments, display kits, and hurry-up orders. That’s the perfect storm for “shortages” that weren’t actually short. Shortage deductions ramp during peak because receiving teams are processing more cartons in less time. Accurate ASNs  and carton labels meaningfully reduce those errors by matching what arrives to what was ordered—before it hits the dock. Multiple sources show ASNs cut receiving errors and costs by aligning contents,

Holiday sales feel great. Holiday returns don’t. The weeks after Black Friday through January generate a tidal wave of merchandise returns—and with it, a spike in excessive defectives, RTVs, price-variance disputes, OTIF-related claims, and post-audit deductions that quietly erode supplier margins.

Black Friday is a sales rocket… and a chargeback magnet. When promo calendars compress, orders surge, and fulfillment windows shrink, even well-run suppliers see OTIF, shortage, labeling, and promo-settlement deductions pile up fast.

Q4 is loud. Promotions stack, shipment windows tighten, and returns surge. That’s when “little” problems—late trucks, label mismatches, muddled price files—turn into OTIF penalties, SQEP/operational chargebacks, price-variance disputes, and post-audit claims that erode your profit just as you’re trying to close the year.