Are my deductions just growing with revenue?
Distributor deductions typically run 25-35% of gross revenue with major distributors. Add a new distributor at $2M annual revenue and expect $500K-$700K in deductions through that channel. This is the most-likely first cause if you've added accounts in the last 12 months.
Diagnostic check: Did distributor revenue grow this year? Did deductions grow roughly in proportion? If yes, volume is the dominant factor — scale your AR coverage with the channel mix.
Did retailer compliance programs get tighter?
Several retailers and distributors changed compliance rules in 2024-2025.
Target Perfect Order rolled out in May 2025. The penalty is $0.75 per carton on non-compliant shipments, with a 2-week violation window to act.
Walmart OTIF sits at a 98% threshold. The penalty applies to PO value on every non-compliant case, and the compounding math is real on larger accounts.
Amazon Vendor Central shortage claims have a steep recovery decay: 95% recovery within 30 days, dropping to 60% at 30-60 days, and 25% after 90 days. Aging matters here — older deductions get progressively harder to recover.
Diagnostic check: Pull a deduction summary by reason code, this year vs. last. New reason codes (especially Perfect Order on Target or new OTIF subcategories on Walmart) point at compliance as the driver.
Is my KeHE process keeping up with my growth?
KeHE issues UDRs at the dock and gives suppliers 48 hours to respond. That window hasn't changed, but a brand growing its KeHE volume sees more notifications hitting in the same 48-hour cadence — and the AR team's capacity to respond to all of them is finite.
If your KeHE business grew and the AR coverage didn't, more UDRs are aging out un-disputed.
Diagnostic check: Did your KeHE volume grow without adding AR coverage for it? If yes, the un-disputed share is probably growing.
Did my distributors restructure or get acquired?
UNFI restructured from four operating regions to three: East, Central, and West. Regional contacts, operating processes, and escalation paths changed with that consolidation. Refresh your internal process docs and your reviewer list.
Diagnostic check: Did any of your distributors restructure or get acquired in the last 12 months? If yes, expect a learning-curve period where deduction patterns look different from prior history.
How much of my deductions are recoverable?
96% of distributor deductions go undisputed. Revya's product page reports $80K recoverable per $1M in deductions. Those two numbers together suggest a recovery ceiling well above what most brands hit today — the work is identification and discipline, not the existence of recoverable money.
How do I diagnose which cause is driving the growth?
Pull two reports for the trailing 12 months vs. the prior 12: deductions by distributor and deductions by reason code. If deductions grew at roughly the rate of revenue, you're scaling normally. If they grew much faster, one of the four causes above is driving it.
How Revya handles this
Revya reports deductions by distributor and reason code over time and surfaces which causes are growing fastest for your account mix. See your trend breakdown
Frequently Asked Questions
What percentage of revenue typically goes to distributor deductions?
25-35% with major distributors.
What percentage of distributor deductions go undisputed?
96%.
How much is recoverable per $1M in deductions?
Revya reports $80K recoverable per $1M.
What changed with Target's Perfect Order in 2025?
Target Perfect Order rolled out in May 2025 with a $0.75/carton penalty and a 2-week violation window.
How fast do Amazon shortage claim recovery rates decay?
95% within 30 days, 60% at 30-60 days, and 25% after 90 days.
How did UNFI restructure?
UNFI consolidated from four operating regions to three: East, Central, and West.