When UNFI and KeHE pay your invoices, they rarely pay in full. Instead, you get a remittance that's short, along with a list of codes your team has to decode: shortage claims, MCBs, spoils, compliance hits. Some of those are valid. A lot of them aren't, and every invalid one you catch is revenue recognized straight to the top line. It's cash in the bank faster, and hours back for a finance team that would otherwise spend the day chasing portal logins. Knowing which deductions are worth disputing, and acting before the window closes, is how recovery becomes a repeatable lever on revenue, bandwidth, and cash flow.
Key Takeaways
- UNFI and KeHE pay suppliers after subtracting fees and charges (called deductions) from the invoice total, and some of those deductions are invalid and fully recoverable.
- UNFI runs a 12-month dispute window and in 2026 moved dispute submission into its new Dispute Center in myUNFI, which replaced email-based submissions and surfaces deduction detail faster.
- KeHE enforces a firm 180-day (6-month) dispute window through K-Solve in the KeHE CONNECT portal and waives the dispute permanently once that window closes.
- Sub-threshold write-offs compound into six figures of recoverable revenue per year when left unaddressed across a full brand portfolio.
- Glimpse disputes UNFI and KeHE deductions as a fully managed service, delivering an average 4.3x increase in dispute volume without added headcount (Glimpse customer data).
What Are UNFI and KeHE, and Why Do They Matter for Deduction Recovery?
UNFI (United Natural Foods, Inc.) and KeHE are the two dominant distributors in the natural and specialty food channel. Both deduct fees and charges from supplier payments before remitting funds, and some of those deductions are invalid and recoverable. For CPG brands, knowing which deductions are which, and disputing them before the window closes, is how recoverable revenue stays on the P&L. Together, they supply Whole Foods, Sprouts, Natural Grocers, independent co-ops, regional natural channel chains, and thousands of specialty retailers across the country.
For a CPG brand trying to reach those shelves, the path almost always runs through one of them. Brands sell to UNFI or KeHE, who then distribute to their retail network, turning one distributor relationship into access across hundreds of retail doors.
That structure also means brands don't receive clean invoice payments. They get a check with deductions already applied: promotional allowances, compliance fees, shortages, and more. Understanding those deductions, where they come from and which ones are worth disputing, is what the rest of this guide covers.
What Are Distributor Deductions?
Distributor deductions are charges UNFI or KeHE subtract from your invoice total before paying you. Some are valid: agreed promotional allowances, freight program costs baked into your payment terms. Some are invalid: shortage claims that don't match your shipping records, compliance chargebacks issued without documentation, or duplicate fees. Only invalid deductions are recoverable, and disputing them is how brands close the gap between what they're owed and what they receive.
Some deductions are expected. You agreed to fund a promotional allowance, so KeHE takes it off your check. UNFI runs a freight program, and that cost is baked into the payment terms. These are valid deductions, and disputing them wastes everyone's time.
The deductions worth disputing are the invalid ones: shortage claims that don't match your shipping records, compliance chargebacks issued without documentation, duplicate fees, and promotional deductions taken outside the agreed date window. Because they are invalid, they are also recoverable.
That gap, between what you legitimately owe and what you're incorrectly charged, is where most brands lose money. Every dollar in that gap is disputable.
What Are the Main UNFI Deduction Categories?
UNFI identifies each deduction by an invoice suffix instead of a simple reason number. The full list runs to 446 codes across 55 categories in UNFI's Supplier Deduction Key (updated January 2025, available on the Supplier Support Center in myUNFI), but they cluster into a handful of families worth knowing. The suffix tells you what happened, and for warehouse charges, where.
Shortages
A short-ship posts as UNFI's quantity/pricing chargeback: the -111 suffix on the invoice number (for example, [Invoice#]-111), which fires when the PO, receipt, and invoice don't line up. Shortages are among the most frequently invalid deduction types in the natural channel, and a signed BOL with proof of delivery is usually enough to dispute them.
Advertising and Promotional
These cover MCB (manufacturer chargeback) and promotional billbacks. In the East, an off-invoice promotional audit posts as UOI(mmyy), UNFI's billback for promotional activity beyond what was agreed to support your promo. In the West, customer-specific deals post as MCB(yyyymmdd), tagged by type: A for ad promotions, C for price promos, and E for EDLP (Every Day Low Price). They're valid when tied to a signed deal and disputable when UNFI bills against a promotion you never authorized, which is why a complete promo calendar is the prerequisite for disputing any of them.
Pricing Discrepancies
A price mismatch posts under the same -111 quantity/pricing chargeback as a shortage, triggered when UNFI's system price doesn't match your invoice price. The backup is what distinguishes the two: it's usually a data-entry issue on either side, resolved with the PO and the signed deal sheet or price confirmation.
Unsaleables and Damages
Warehouse-level damage posts as a concealed-damage charge in the format [DC#]CNDM(mmmyy), prefixed by the distribution center that found it: 01CNDM at Rocklin, 02CNDM at Seattle, 05CNDM at Denver, and so on. Disputing requires proof of disposal or a return authorization. Worth noting: those leading digits point to a warehouse, not a reason, so the same concealed-damage charge shows up under several different numeric prefixes.
Compliance and Logistics Fees
Most of UNFI's compliance fees share an LC prefix and hit for operational misses: LCPV(PO#) for a pallet that fails UNFI's build standard (overhang, restacking, an unacceptable pallet), LCP(PO#) for a pallet-placard or PO-labeling miss, and LCBOL(PO#) for an incomplete or inaccurate BOL or packing slip. A late delivery is coded separately as AVL(PO#), for loads that miss their scheduled appointment by more than 30 minutes. These are largely avoidable with clean operational execution, and worth auditing for errors when they do appear.
What Changed With UNFI's SSA Process and Dispute Center in 2026?
UNFI made two structural changes to its deduction handling in 2026: it consolidated SSA fees into a single monthly charge, and it launched a dedicated Dispute Center that replaced email-based submissions. Both changes affect how you should think about dispute timing.
What the SSA Consolidation Means for Cash Flow
For enrolled Natural suppliers, UNFI consolidated its SSA (Simplified Supplier Approach) allowance into a single monthly deduction per region, East and West, effective February 1, 2026. Previously, SSA was deducted on every individual invoice. Under the new model, it appears as one consolidated monthly line item within two weeks after month-end. The dollar amount and rate stayed the same; only the timing and presentation changed.
How the Dispute Center Changes Your Timeline
UNFI's Dispute Center gives suppliers a central hub in myUNFI to review deductions, submit disputes, and track resolution status. It surfaces deduction detail faster than the old email process, which shortens the gap between when a deduction posts and when you can act on it. The portal also enforces its window strictly: adjustments older than 12 months are denied outright.
Deductions below internal write-off thresholds are now easier to see in aggregate through the portal, which means the cost of ignoring them is no longer easy to overlook. If your team reviews UNFI deductions on a slow cycle, sub-threshold items and aging claims are the ones that slip.
What Are the Main KeHE Deduction Categories?
Alongside shortages (covered below), KeHE's deductions fall into a few major categories: Manufacturer Charge-Backs (MCBs) and other promotional billbacks, spoils and warehouse damage, and compliance chargebacks. MCBs cover promotional activity, spoils and damage charges hit product pulled at the warehouse, and compliance chargebacks hit operational misses like late deliveries or labeling errors. The category a deduction falls into determines what documentation you need and how to dispute it.
Manufacturer Charge-Backs (MCBs)
MCBs cover promotional activity: off-invoice allowances, scan-back programs, ad fees, and display allowances. These are largely expected costs, but KeHE sometimes takes them against the wrong invoice, duplicates them, or applies the wrong rate. Match every MCB against your signed trade agreements before accepting it.
Spoils and Warehouse Damage
These charges hit when KeHE pulls product at the warehouse for spoilage or damage. Low-dollar spoils charges are often not worth the fight, but above your threshold they're disputable when you can produce lot codes, ship dates, and your shelf-life policy. Match the charge against your own records before accepting it.
Compliance Chargebacks
These chargebacks hit when shipments miss KeHE's operational requirements: late deliveries, labeling errors, non-standard pallet configurations, or failed EDI transmissions. Carriers and third-party logistics providers sometimes cause the underlying issue, so clean proof-of-delivery records can get these reversed.
UNFI vs. KeHE: How Do Their Dispute Windows and Documentation Requirements Compare?
UNFI and KeHE differ most in dispute window length, portal structure, and what happens once a deadline passes. The table below breaks down the comparison side by side.
Start with KeHE given the shorter 180-day window, then work both queues by posting date, oldest to newest, so nothing ages past the cutoff.
How Distributor Dispute Windows Work and What Happens When You Miss Them
A dispute window is the fixed period of time a distributor gives you to challenge a deduction after it has been taken from your payment. Once that window closes, the deduction is closed with it. Permanently, regardless of whether the charge was valid.
What Is a Dispute Window?
UNFI and KeHE each set their own window. UNFI's window runs 12 months from the date the deduction was taken, and adjustments older than that are denied outright. KeHE gives you 180 days (6 months) to file in K-Solve, and waives the dispute permanently once that window closes. These are not soft guidelines. They are enforced by the portal systems, and there is no recovery once the window expires.
What Happens to Deductions That Age Out
Aged-out deductions are permanently unrecoverable. There is no appeal, no manual override, and no relationship escalation that reliably gets dollars back once the window has closed. Whether the deduction was valid or invalid no longer matters. That revenue is gone.
Why So Many CPG Brands Miss the Window
The systemic reasons are predictable. Deduction data lives across multiple portals, freight documents, remittances, and ERP entries that no one has linked into a single view. Finance teams operating manually face a triage problem: when 200 deduction line items come in each month, anything below an internal write-off threshold gets set aside. A $45 shortage claim does not feel worth an hour of documentation work. A $75 compliance hit from a single pallet label gets deprioritized in favor of a $3,000 item.
Manual teams triage by dollar amount. When a finance team has 200 deduction line items and limited bandwidth, deductions under $50 or $200 get set aside in favor of larger claims. The underlying invalidity rate on small deductions is just as high.
Each individual write-off looks defensible in isolation. The aggregate is not. Sub-threshold deductions compound across a full year into six figures of recoverable revenue sitting uncollected. Miss Jones Baking Co. found $40,000 in undisputed invalid deductions under $50 and $80,000 under $200 from KeHE and UNFI in a single year, all written off under the manual threshold. Table 87 has recovered $145,000 from UNFI and KeHE, with most of that recovery coming from deductions of $500 to $1,000 each, amounts a manual team would never have chased.
How Glimpse Handles Aged and Sub-Threshold Deductions
Because Glimpse operates as a fully managed service with no cost per dispute, there is no write-off threshold. Every deduction gets worked, including the $45 shortage claim that a manual team would have written off on day one.
Glimpse ingests deduction data from UNFI and KeHE portals as soon as it is posted, before remittance checks are issued. That pre-remittance visibility means claims are flagged and matched against purchase orders and BOLs while there is still time to file. Deductions approaching their window deadline are moved to the front of the work queue automatically.
The dispute clock is real, and aged-out dollars are gone for good. Working every deduction before the window closes, regardless of size, is how that clock stays on your side.
How Do You Dispute a UNFI Deduction?
Disputing a UNFI deduction starts with pulling backup documentation before you file anything: the original purchase order, the invoice, the bill of lading, and any proof of delivery. Submitting an incomplete package is one of the fastest ways to get a claim denied.
UNFI manages deduction detail through its Dispute Center in myUNFI, where you can view the deduction type, dollar amount, and reference number. Log in, locate the deduction, and match it against your own records before filing.
Deadlines You Need to Know
UNFI enforces a 12-month dispute window from the date of the deduction, and missing it forfeits your right to recover that deduction entirely. Check the UNFI supplier terms and conditions to confirm your window.
Once UNFI receives a dispute, resolution typically takes 30 to 45 days depending on the deduction type and documentation completeness. Tracking your open disputes in the portal is the most reliable way to catch any requests for additional backup before the window expires.
When you file, write a clear dispute reason that ties your documentation directly to the deduction. Vague submissions without supporting evidence get rejected. Reference the specific invoice number, the shipment date, and the exact dollar amount in dispute.
What Makes a UNFI Dispute Succeed or Fail
Three deduction types account for most UNFI dispute outcomes, and each requires different evidence:
- Shortage deductions succeed when your BOL and carrier confirmation show full delivery. Attach both. This is your strongest evidence, and it's how Evermark recovered millions in deductions it had previously written off.
- Pricing deductions succeed when you pull the signed trade promotion agreement or price confirmation email and reference the exact promotional period.
- Compliance deductions succeed when you attach the original routing or labeling spec sheet. If the charge was applied incorrectly, that documentation is what gets it reversed.
How Do You Dispute a KeHE Deduction?
KeHE disputes run through K-Solve, the deductions tool inside the KeHE CONNECT Supplier portal. KeHE has moved off email, so the portal is now the only channel, and missing any single step can get a dispute rejected before anyone reviews it. Here's how the process works in practice:
- Log into KeHE CONNECT, open K-Solve, and pull your open deductions. Filter by posting date so you can see which deductions are approaching the deadline first.
- Download the remittance detail for each deduction. This tells you the deduction type, the invoice it ties to, and the dollar amount KeHE applied.
- Gather your backup documentation. Shortage deductions require the signed BOL and proof of delivery. Pricing and MCB deductions require the approved item file or signed deal confirmation. Missing or mismatched backup is the most common reason disputes fail.
- Open a case in K-Solve with your documentation attached, writing a brief dispute reason that matches the deduction type exactly. Vague notes like "please review" slow down resolution and often trigger rejections. (If you also sell through mass retail, the same discipline applies to Walmart's APDP process.)
- Track your open disputes and follow up before the 180-day window closes. KeHE is enforcing stricter dispute deadlines for older deductions.
The volume problem is where most manual teams fall apart. A team working through KeHE deductions by hand can realistically handle only a fraction of what comes in each month.
Why Do CPG Brands Write Off Invalid Deductions Instead of Disputing Them?
Most finance teams write off invalid deductions because volume overwhelms capacity. A mid-sized CPG brand working with UNFI or KeHE can receive hundreds of deduction line items per month, each requiring backup documentation, cross-referencing against purchase orders, and a dispute filed within a shrinking window. When workload outpaces headcount, the default is triage, and triage means write-offs.
When the workload outpaces headcount, teams triage. Deductions under a certain dollar threshold get written off automatically because the labor cost of disputing them appears to exceed the expected recovery.
The Sub-Threshold Write-Off Problem
Run that math across 12 months and the logic collapses, because three patterns compound the loss:
- Small deductions add up unnoticed because no single line item feels worth the fight, even when the aggregate is substantial.
- Dispute deadlines expire while documentation is still being pulled, particularly with UNFI's portal, where backup retrieval takes time.
- Finance teams lack visibility into which deduction types have the highest invalidity rates, so they can't rank deductions by expected recovery value.
"The black box in CPG is that all this data lives in different systems across different teams. Without actually going deep into the deductions data, you can't understand if a specific deduction type is a big culprit at a specific retailer." Akash Raju, CEO, Glimpse
The result is a write-off culture that treats recoverable revenue as a fixed cost, even though every unmanaged deduction is preventable revenue that compounds into six figures across a full year.
How Does Glimpse Recover UNFI and KeHE Deductions for CPG Brands?
Glimpse handles the full deduction cycle for CPG brands selling through UNFI and KeHE, pulling backup documentation from distributor portals, matching each deduction against purchase orders, BOLs, and promotional authorizations, and filing disputes before deadlines expire. Because there is no cost per dispute, every deduction gets worked, including the small ones a manual team would write off. Learn more about how it works on the deductions management page.
For UNFI deductions, that means working inside the Dispute Center and tracking the 12-month window as it counts down. For KeHE, Glimpse monitors the 180-day cutoff and files in K-Solve before the dispute is waived for good.
Brands working with Glimpse see an average 4.3x increase in dispute volume without adding headcount (Glimpse customer data). That's the outcome of a fully managed service: AI scale paired with human judgment on the edge cases that require it.
Final Thoughts on UNFI and KeHE Deduction Recovery
Invalid deductions are recoverable, and what determines whether you get them back is whether your process can act before deadlines close. Your documentation speed, your dispute process, and your ability to act on time are what decide how much of that revenue stays in your P&L.
Glimpse handles the full cycle so your team doesn't have to. Talk to Glimpse and see exactly how much is sitting in your open deductions right now.
FAQ
What's the difference between UNFI and KeHE deduction dispute windows, and which one should you tackle first?
KeHE enforces a 180-day (6-month) deadline, after which the dispute is waived permanently in K-Solve. UNFI's window is longer, at 12 months from the date of the deduction. Start with KeHE given the shorter clock, then work UNFI by posting date, oldest to newest, so nothing ages past the cutoff.
How do I dispute a shortage deduction with UNFI or KeHE?
For both distributors, gather the signed bill of lading and proof of delivery before filing anything. With UNFI, submit through the Dispute Center and reference the exact invoice number, shipment date, and deduction detail. With KeHE, open a case in K-Solve (inside KeHE CONNECT) with documentation attached and a dispute reason that matches the deduction type exactly, since vague submissions get rejected before anyone reviews them.
Should CPG brands dispute small UNFI and KeHE deductions or just write them off?
Writing off small deductions individually feels reasonable in the moment, but run that decision across 12 months and those sub-threshold deductions compound into six figures of recoverable revenue sitting uncollected. The write-off habit exists because manual teams can't keep up with the volume. The deductions themselves are just as often invalid.
What UNFI deduction categories have the highest rate of invalid charges for CPG brands?
Shortage deductions are among the most frequently invalid charges UNFI issues, since carrier documentation typically contradicts the claim that fewer cases were received. Compliance chargebacks are the second area worth auditing closely, since they're often issued without documentation that holds up against actual shipping records.
Glimpse vs. a broker for disputing UNFI and KeHE deductions: which gets more money back?
Brokers can submit disputes on your behalf, but you still have to flag the deduction, notify them, and provide supporting documents, with little visibility into what happens after submission. Glimpse pulls backup directly from distributor portals, matches every deduction against purchase orders and BOLs, and files before deadlines expire without your team managing the process.
Which retailers and distributors does Glimpse currently support?
Glimpse currently supports deductions management across a growing list of major retailers and distributors, including Walmart, Sam's Club, Target, Kroger, Amazon 1P, Walgreens, Ulta Beauty, Sephora, PetSmart, H.E.B., Meijer, BJ's, Whole Foods, KeHE, and UNFI. We're continuously onboarding new retailers and distributors, so if you don't see yours listed, reach out. There's a good chance it's already on our roadmap or in active development.
Does Glimpse integrate with our ERP and accounting systems?
Yes. Glimpse integrates directly with QuickBooks and NetSuite, syncing with your ERP and accounting systems so deduction data, backup, and recovery flow into your existing financial workflows without manual re-entry. If you use a different system, reach out. We're regularly expanding our integrations.
How does Glimpse keep our data secure?
Security and data privacy are foundational to how we operate. Glimpse is SOC 2 Type 1 compliant, and we're currently undergoing our SOC 2 Type 2 audit to further validate the ongoing effectiveness of our security controls. We follow enterprise-grade practices for data encryption, access control, and secure system integration (including your ERP), so your financial data stays protected at every step.
About the Author
Anuj Mehta is co-founder and COO at Glimpse, where he oversees the customer journey from onboarding to ongoing success. He has worked with hundreds of retail brands to understand their pain points and deliver direct value with Glimpse's AI solutions.
About Glimpse
Glimpse is an AI-native deduction management service built for CPG brands selling through distributors and major retailers. Glimpse automates the entire deductions process, from coding and validation to dispute resolution, using AI agents trained on distributor- and retailer-specific rules. Glimpse automates the workflows overwhelming manual teams, disputing all the invalid deductions that manual teams can't address.
With Glimpse, over 200 brands have recovered invalid deductions, eliminated manual work, and improved bottom-line performance without adding headcount. Glimpse has processed over $1 billion in invoice volume. Backed by Andreessen Horowitz. Based in New York.
