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Short-Pay Playbook
05
8% of short-pays

Undocumented & Code 99 Deductions

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.

How the deduction mechanism works

Some buyer AP systems allow payments to be released with a reduced amount and no explanation. The remittance advice arrives with a short-pay balance and either a generic 'Code 99 — Other' reason code or a completely blank reason field. The seller's AR team opens a claim investigation, but without a stated reason, they have nothing to validate or dispute. In many organizations, these deductions sit in the clearing account for 90+ days and are eventually written off as 'cost of doing business.'

The contract clause that governs it

Section 12.3 of a well-drafted MVA includes a remittance documentation requirement: 'All deductions and chargebacks must be accompanied by a written claim statement specifying the reason, the affected invoice(s), and supporting documentation. Deductions without substantiation are subject to full reversal upon written notice from Seller.' The absence of documentation is itself the grounds for recovery.

How Axiom proves the claim

Axiom scans the remittance advice for reason code and backup document presence. If the reason field is blank, contains 'Code 99', or references no supporting claim document, the system flags the full short-pay balance as recoverable under §12.3. The dispute letter does not argue the merits of the deduction (there are none to argue) — it simply states that the deduction was taken without substantiation and requests full reversal per the contractual documentation requirement.

remittance scan — INV-0855
Short-pay amount$2,140.00
Reason codeCODE 99 — Other
Backup documentNone on file
§12.3 requirementWritten claim + docs
VerdictUndocumented — Recoverable
Previous patternUnapplied Volume Rebates

Find this pattern in your own ledger

Upload your short-pay remittances and signed contract terms. Axiom categorizes every deduction, matches it to the governing clause, and delivers a completed workpaper in 48 hours.