CPGComing Soon
Deduction Manager
Stop losing margin to invalid deductions. AI auto-codes chargebacks, matches backup documentation, identifies disputes worth fighting, and recovers revenue hiding in your deduction backlog.
What is Deduction Manager?
Deduction Manager stops the margin leak that comes with selling through retailers and distributors. It auto-codes incoming chargebacks by root cause, matches them against backup documentation like proof-of-delivery, identifies which disputes are worth fighting, and helps you file claims with a single click. Most CPG brands lose 2–5% of gross revenue to deductions, and a surprising percentage of those deductions are invalid — the retailer made an error, the product arrived on time, or a promotion was applied incorrectly. Built for CPG operator founders who know their deduction backlog is costing them money but don't have the time or headcount to chase every chargeback manually. Currently in development; request beta access to get notified when it launches.
Key Features
Who it's for
- CPG operator founders selling through retail who lose margin to deductions every month
- Small brands without a dedicated deductions analyst on staff
- Teams whose deduction backlog grows faster than they can process it
- Founders who suspect many of their chargebacks are invalid but can't prove it fast enough to dispute
Example workflows
Process this week's deduction batch
- 1Upload or import the latest settlement statements from your distributors.
- 2Review the auto-coded deductions — confirm or correct the root cause classifications.
- 3For each invalid deduction, review the matched backup documentation (POD, BOL, promotion records).
- 4File disputes for qualified claims with one click and track their status.
Quarterly deduction review with your distributor
- 1Pull the deduction aging report filtered by distributor.
- 2Review total deductions, disputed vs. written off, and recovery rate.
- 3Identify the top root causes driving deductions (shortages, compliance, promo disputes).
- 4Bring this data to your quarterly distributor review to negotiate better terms or fix root causes.
What you can ask
"How much have we lost to deductions this quarter?"
"Show me all unresolved chargebacks over 60 days old"
"Which retailer accounts have the highest invalid deduction rate?"
"File disputes for all shortages with proof-of-delivery on file"
"What's our deduction recovery rate by distributor?"
Frequently asked questions
When does Deduction Manager launch?
Currently in development. Request beta access at starch.site and we will notify you when it is available. We are building this based on real operator founder feedback — if you have specific needs, tell us during the beta signup.
What kinds of deductions does it handle?
Trade deductions (scan-backs, off-invoice, promotional allowances), logistics deductions (shortages, damages, late delivery penalties), and compliance deductions (labeling, pallet configuration, ASN errors). If it shows up as a line item on a distributor settlement statement, Deduction Manager can classify and track it.
How does auto-coding work?
Starch reads the deduction description, amount, account, and timing, then classifies it by root cause based on patterns from your history. You review the coding and correct any misclassifications — accuracy improves over time as it learns your specific accounts.
What is the typical recovery rate?
Depends on your current process. Brands that aren't systematically disputing usually recover an additional 15–30% of invalid deductions once they start. The key is speed — most retailers have a 30–60 day window to dispute, and if you miss it, you eat the cost.
Does it integrate with our distributor portals?
It reads deduction data from your settlement statements — typically CSV or PDF exports from UNFI, KeHE, or retailer portals. Direct API integrations with major distributors are on the roadmap.
Can it handle scan-back reconciliation?
Yes. It matches scan-back deductions against your promotion plans and POS data to verify that the claimed quantities actually sold through. This catches the common scenario where a retailer claims a scan-back for more units than actually moved at the promotional price.
How much time does this save?
Most small CPG teams spend 10–20 hours per week manually processing deductions. Deduction Manager automates the coding and matching steps, cutting that to 2–4 hours of review and dispute filing. The real ROI is the recovered revenue from disputes you'd otherwise have missed.
Be the first to use Deduction Manager
Deduction Manager is in development. Join the waitlist and we'll notify you when it launches.
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