P23-EDU Finance & Operations

Chargeback
Cost

Find the true net revenue and margin on a retail account after chargebacks, allowances, and compliance costs are applied. Most accounts look less profitable on paper than they appear on the PO. Some should be exited entirely.

Account & PO Details

Retailer / Account Name

PO Value ($)Gross invoice value

Your Gross Margin %Before chargebacks

Annual POs with This AccountOrders per year

Avg Internal Admin Hours / POCompliance, filing, disputes

Your Internal Hourly Rate ($)Staff cost for compliance work

EDI Monthly Cost (allocated $)Monthly EDI provider cost for this account

Deductions & Allowances

Enter pre-agreed deductions as % of PO and estimated chargeback incidents with their per-incident cost.

Early Pay Discount % (if taken)e.g. 2% 10 NET 30

Markdown Allowance %Pre-agreed. Applied to PO value.

Co-op / Advertising %Brand contribution to promotions

New Vendor Setup Fee ($)One-time per retailer, amortize as needed

Chargeback Incidents

Enter expected incidents per PO and fee per incident. Adjust as your compliance improves.

Chargeback Type	Incidents / PO	Fee Each ($)
Routing violationWrong carrier or service level
Labeling / ticketing errorBarcode, price ticket, carton label
EDI errorASN late, wrong format, data mismatch
Packing violationWrong case qty, mixed SKUs
Late / short shipmentOutside ship window or short quantity
Other / miscAny additional violation type

Dispute Win Rate %% of chargebacks successfully disputed back

Dispute Admin Hours / ChargebackTime cost of filing a dispute

True Net Revenue per PO

Net Revenue After All Deductions

vs $0 gross PO value

True Net Margin

Chargeback Rate

Total Deductions

Annual Profit

Account Healthy Net margin is above 45%. This account is worth maintaining.

PO Revenue Waterfall

Gross PO Value -

Less: Early Pay Discount -

Less: Markdown Allowance -

Less: Co-op Contribution -

Less: Gross Chargebacks -

Plus: Chargebacks Recovered -

Net Revenue -

Margin Waterfall

Gross Margin (before deductions) -

Less: All Allowances -

Less: Net Chargebacks -

Less: EDI Cost (annual / PO) -

Less: Admin Labour Cost -

True Net Profit / PO -

Annual View (0 POs)

Annual Gross Revenue -

Annual Total Deductions -

Annual Chargeback Cost (net) -

Annual Net Profit -

Retail Chargeback Cost Calculator