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THE ULTIMATE CPG DICTIONARY
Deduction
Retailer chargebacks against manufacturer invoices, often related to promotions, damaged goods, or compliance issues.
How it's Calculated:
Varies by contract; deducted from payments owed to the manufacturer.
Example:
A retailer deducts $50,000 from a manufacturer’s invoice due to a short shipment or unauthorized promotion spend.
Category:
Financial/Distribution Metrics
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