These deduction patterns account for a large share of the revenue leakage in distributor and manufacturer accounts receivable. Each one maps to a specific clause or fee schedule, a specific proof artifact, and a specific dispute workflow.
Generic mechanics first, named-distributor mechanics after
The 2/10 taken outside the window
The single most common short-pay in B2B distribution. A buyer deducts 2% off the invoice total as a cash discount, but their payment clears the seller's bank account after the contractual 10-day window has closed. The buyer's AP system applies the discount automatically at invoice entry; nobody checks whether the payment actually arrived on time.
Freight billed on destination terms
A buyer deducts shipping costs from their payment even though the contract specifies FOB Destination — meaning the seller is obligated to deliver freight-free above a certain order threshold. The buyer's AP system sees a freight line on the carrier invoice and automatically nets it against the seller's remittance, ignoring the contractual obligation.
Unit price off the signed schedule
The buyer's AP system pays invoices at a unit price that differs from the rate in the signed pricing schedule. This happens when the buyer's procurement team negotiates a new rate but the AP system still references the old price list, or when the buyer misapplies a volume tier discount before the qualification threshold is reached.
Volume credits taken before they are earned
A buyer prematurely deducts an annual growth rebate credit against their invoice payments before the contractual purchase volume threshold has been met. The buyer assumes they will hit the target by year-end and takes the credit early — but the contract says rebates are earned at threshold, not before.
A short-pay with no reason on the remittance
The buyer shorts the payment and provides no reason code, no backup document, and no claim reference on the remittance advice. These 'Code 99' or blank-reason deductions are the most frustrating for AR teams because there is nothing to audit against — and that is precisely why they are recoverable.
The 8% processing fee, verified against the claim
An MCB (Manufacturer Chargeback) is KeHE's mechanism for passing a supplier-funded promotion — a scan-back, a slotting commitment, a marketing co-op — through to the supplier's payment as a deduction. KeHE doesn't originate the promotion; it processes one the supplier already agreed to, and charges 8% of the MCB amount for doing so, with a $65 floor per distribution center, run biweekly. The deduction on the remittance is correct in form far more often than it's correct in substance.
The 8% fee, capped at $700 — check the cap before conceding
Extra Performance (EP) is KeHE's line for promotional and marketing funding processed on the supplier's and retailer's behalf — coupons, product placement, in-store demonstrations. KeHE charges 8% of the submitted invoice to process it, with a $35 floor and, critically, a $700 ceiling. The floor protects KeHE on small claims; the ceiling protects the supplier on large ones, and it's the number AR teams reconciling by percentage alone are most likely to miss.
Thirty minutes late, and the cost shifts to the vendor
C&S Wholesale Grocers' Inbound Routing Guide sets a hard threshold on dock appointments: a carrier arriving thirty minutes or more past its scheduled time can be refused or delayed, and C&S bills the resulting cost back to the vendor — either directly from the carrier or as a chargeback on the remittance. The rule is unambiguous on paper. Whether it was actually earned depends on who was late, and by how much, which the chargeback line alone never shows.
Upload your short-pay remittances and signed contract terms. Axiom categorizes each deduction, matches it to the governing clause, and delivers a completed workpaper within one business day.