Costco deduction & chargeback codes
A Costco deduction (or chargeback) is money Costcosubtracts from a supplier's invoice when a shipment breaks a compliance rule. Below are the 6 Costco codes we track, each with what triggers it, the typical penalty, and how to prevent it before you ship.
- ASN / EDI 856Code ASN-LATE: Late or inaccurate ASNView details →
- Accounts Payable / InvoicingCode INVOICE-MATCH: PO / invoice data mismatchView details →
- LabelingCode LABEL-GS1: Incorrect GS1-128 / SSCC labelView details →
- On-Time DeliveryCode LATE-DELIVERY: Late or refused deliveryView details →
- Packaging / PalletCode PALLET: Pallet configuration violationView details →
- Accounts Payable / ShortageCode QTY: Quantity discrepancyView details →
Costco deduction codes: common questions
How many deduction codes does Costco have?
We currently document 6 Costco deduction and chargeback codes, each with what triggers it, the typical penalty, and how to prevent it. Costco may assess others; we add and verify codes against public sources over time.
What is the difference between a Costco chargeback and a deduction?
In retail vendor compliance the two terms are used interchangeably: the retailer subtracts, or "charges back," money from your invoice when a shipment breaks a rule in the vendor agreement. This is not the same as a payment-card chargeback, which is a consumer dispute on a credit-card transaction.
How do you prevent Costco deductions?
Catch the ASN, label, routing, or invoice error before the shipment leaves your dock. Each code page lists its common causes and prevention steps, and the Costco prevention playbook collects the pre-shipment checks that matter most.
Last reviewed 2026-07-10. Compiled by the GetChargeback editorial team from public retailer vendor documentation and GS1/X12 EDI standards. How we research and verify.
GetChargeback is not affiliated with Costco. This is an informational reference, not legal, financial, or compliance advice.