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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, EP fees, compliance hits. Some of those are valid. A lot of them aren't, and every invalid one you catch does more than plug a leak. It's revenue recognized straight to the top line, cash that hits the bank faster instead of sitting in a dispute queue, and hours back for a finance team that would otherwise be chasing portal logins instead of higher-value work. Knowing which deductions are worth disputing, and acting before the window closes, is what turns that recovery from a one-time save into 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 consolidated its supplier portal in 2026, making dispute windows more rigid and monthly review cycles too slow to catch everything.
- KeHE enforces a firm dispute window through KeHE Connect and removes the dispute option entirely 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.
- An automated deductions management tool, like Glimpse, disputes UNFI and KeHE deductions as a fully managed service, delivering an average 4.3x increase in dispute volume without added headcount.
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, and both routinely deduct from supplier payments before remitting funds. 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. Instead of selling directly to each retailer, 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 the charges UNFI or KeHE subtract from your invoice total before they pay you, and some are valid while others are not. When UNFI or KeHE pays you for a shipment, they don't wire the full invoice amount. They subtract charges first, then send the difference.
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 fall into a different category: invalid deductions. Invalid deductions are 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 and Reason Codes?
UNFI groups its deductions into five recurring categories, and knowing the reason code behind each one is the fastest way to separate disputes worth filing from write-offs worth accepting.
Shortages (Reason Code 01)
UNFI claims it received fewer cases than invoiced under this code, and it's among the most frequently invalid deduction types in the natural channel. Carrier backup documentation is usually enough to dispute these successfully.
Advertising and Promotional (Codes 10, 11, 12)
These codes cover MCB, off-invoice promotions, and ad support. They're valid when tied to a signed agreement, and disputable when UNFI deducts against a promotion that was never authorized.
Pricing Discrepancies (Code 02)
Code 02 triggers when UNFI's system price doesn't match your invoice price. It's often a data entry issue on either side, and typically straightforward to resolve with documentation.
Unsaleables and Damages (Code 05)
This code applies to product returned or destroyed at the warehouse level. Disputing it requires proof of disposal or a return authorization.
Compliance and Logistics Fees (Codes 30+)
These fees cover late shipments, labeling errors, and pallet violations. They're 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
UNFI consolidated its SSA (Simplified Supplier Approach) allowances into a single monthly deduction per region, East and West, effective February 1, 2026. Previously, SSA fees were deducted on every individual invoice. Under the new model, they appear 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 New Dispute Center Changes Your Timeline
UNFI's Dispute Center gives suppliers a central hub to review deductions, submit disputes, and track resolution status. It surfaces deduction detail faster than the old email process, which compresses the window between when a deduction posts and when you need to act on it. The portal also enforces its review window strictly: adjustments older than 12 months are denied outright, with no escalation path available.
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 monthly cycle, that cadence may no longer catch everything before the dispute window closes.
What Are the Main KeHE Deduction Categories?
KeHE groups its deductions into three broad buckets: Merchandising Charge-Backs, Everyday Pricing fees, and compliance chargebacks. Knowing which bucket a deduction falls into changes how you dispute it and what documentation you'll need.
Merchandising 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.
Everyday Pricing (EP) Fees
EP fees apply when your shelf price exceeds KeHE's everyday price threshold for a category. They're common, and often disputed successfully when you can show your pricing was compliant during the charge period. [INTERNAL LINK: link to SPS Commerce's breakdown of KeHE price protection claims and documentation requirements.]
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 UNFI disputes given the shorter clock, then work KeHE deductions by posting date, oldest to newest, so nothing ages past the cutoff.
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 supplier portal, 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. [INTERNAL LINK: link to SPS Commerce's step-by-step reference on disputing UNFI deductions for natural suppliers.]
Deadlines You Need to Know
UNFI enforces dispute windows, and missing one forfeits your right to recover that deduction entirely. The window varies by deduction type, and SPS Commerce's research on distributor dispute timelines confirms most natural suppliers operate on a similar clock. Check the specific terms in your distributor agreement to confirm your window.
When you file, write a clear dispute letter that ties your documentation directly to the deduction code. Vague letters 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 the same approach Evermark used to uncover millions in invalid shortage deductions.
- 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 the KeHE Connect portal, and missing any single step in the process can get a dispute rejected before anyone reviews it. Here's how the process works in practice:
- Log into KeHE Connect and pull your open deductions from the Deductions tab. 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 deductions require the approved item file or deal confirmation. Missing or mismatched backup is the most common reason disputes fail.
- Submit the dispute through KeHE Connect 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. [INTERNAL LINK: link to the Glimpse guide on disputing Walmart deductions for brands that also sell through mass retail.]
- Track your open disputes and follow up before the 90-day window closes. KeHE has started enforcing deadlines by removing the dispute option entirely for older deductions. [INTERNAL LINK: link to Glimpse's guide on KeHE's 6-month dispute deadline.]
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 don't set out to write off valid deductions; the volume overwhelms them. 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 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. That framing is wrong: every unmanaged deduction is preventable revenue waiting to be recovered, and across a full year those sub-threshold write-offs compound into six figures.
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 directly from distributor portals, matching each deduction against purchase orders, BOLs, and promotional authorizations, then filing disputes before deadlines expire.
For UNFI deductions, that means working inside the supplier portal and tracking the dispute window as it counts down. For KeHE, Glimpse monitors the 6-month cutoff and files through KeHE Connect before the dispute option disappears entirely.
Brands working with Glimpse see an average 4.3x increase in dispute volume without adding headcount. 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 6-month hard deadline, after which the dispute option disappears entirely from KeHE Connect. UNFI's window runs on a shorter clock for most deduction types [VERIFY: confirm exact number of days]. Start with UNFI disputes given the shorter timeline, then work KeHE 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 supplier portal and reference the exact invoice number, shipment date, and deduction code. With KeHE, file through 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 handle the volume, not because the deductions themselves are invalid.
What UNFI deduction categories have the highest rate of invalid charges for CPG brands?
Shortage deductions under reason code 01 are among the most frequently invalid charges UNFI issues, since carrier documentation typically contradicts the claim that fewer cases were received. Compliance chargebacks under codes 30 and above 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.
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.
