Verification of on hand inventory is key to resolution. Freight Deductions center on party responsible for freight charges related to invoiced shipments or returned merchandise. In many cases, agreements are in place to resolve. Unfortunately, many accounts payable systems do not appear to be updated with these agreements. Returned Merchandise Deductions taken for return merchandise.
Differences occur between quantity and correct price for product being returned.
In some instances, it may be necessary to request a proof of return. Post Audit Deductions taken after the fact. In many cases, the individual performing the audit may not have all of facts to properly complete the audit. The auditor may only have the invoice and purchase order at their disposal. See the chart showing how much selling is needed to cover deductions taken to maintain your profit margin.