How to prevent Costco chargebacks
Every Costco deduction we track traces back to a preventable error in the ASN, the label, the routing, or the invoice. This playbook aggregates the prevention steps from all 6 Costco codes in our database, grouped by the operational area that owns them.
ASN / EDI 856
- Transmit the 856 before or as freight departs, never after
- Generate the ASN from actual pick/pack scan data, not the PO
- Monitor 997 acknowledgments so a rejected ASN is re-sent before arrival
Protects against: ASN-LATE
Accounts Payable / Invoicing
- Three-way match PO (850), ASN (856) and invoice (810) before transmission
- Invoice from confirmed shipped quantities at PO prices
- Sync item identifiers with Costco's item file on every new item setup
Protects against: INVOICE-MATCH
Labeling
- Generate SSCCs from your registered GS1 Company Prefix and validate before printing
- Drive label generation and the 856 ASN from the same shipment data
- Scan-test labels before the truck is loaded
Protects against: LABEL-GS1
On-Time Delivery
- Book and hit depot delivery appointments exactly, not early, not late
- Track shipments in transit and reschedule appointments at the first sign of delay
- Build depot lead times into production and shipping plans
Protects against: LATE-DELIVERY
Packaging / Pallet
- Build pallets to Costco's configuration spec with no overhang
- Use stacking patterns and stretch wrap that keep loads stable in transit
- Photo-document pallet condition at loading for dispute evidence
Protects against: PALLET
Accounts Payable / Shortage
- Scan-verify picked quantities against the PO before loading
- Correct the ASN and invoice whenever a shipment goes short
- Never substitute items without written approval
Protects against: QTY
Already been charged? Dispute it.
Compliance documentation and routing guides live in the Supplier Portal. Because charges are case-by-case, disputes hinge on shipment evidence: ASN records, label validation, pallet photos, and signed delivery paperwork.
Full program details: Costco vendor compliance guide →
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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; verify current requirements in Costco Supplier Portal. This is an informational reference, not legal, financial, or compliance advice.