What Are Kroger AP Deductions?

Overview

Accounts Payable (AP) deductions are payment adjustments Kroger applies directly to supplier invoices. Instead of paying the full invoice amount, Kroger deducts the disputed amount and includes supporting deduction details for the supplier to review.

AP deductions reduce invoice payments, while Accounts Receivable (AR) fines are separate invoices issued by Kroger to suppliers.

What Information Is Included?

Each deduction typically includes important transaction details that help suppliers identify the reason for the adjustment.

• UPC
• Item description
• Deduction amount
• Deduction quantity
• Deduction code
• Deduction code description

Viewing Deductions in Supplier Connect

Kroger suppliers can access deduction information through the Supplier Connect portal. The portal allows suppliers to review invoices, payment details, deduction records, submit disputes, and monitor dispute status.

AP Deductions vs. AR Fines

An ORAD (Original Requested Arrival Date) late delivery charge is a common example of an Accounts Receivable fine.

Common Deduction Types

Kroger uses multiple deduction reason codes, such as Codes 4, 6, and 7, to identify different adjustment types. Reviewing these codes helps suppliers understand why deductions occurred and determine whether a dispute is appropriate.

Conclusion

Understanding Kroger AP deductions allows suppliers to reconcile invoice payments more efficiently, identify invalid deductions, and submit disputes with the appropriate documentation. Regularly reviewing Supplier Connect helps ensure deductions are addressed before they become overdue.