Crackerjack-IT Blog

Sick of EDI Chargebacks? 5 Signs Your EDI Setup Needs a Tune-Up

April 30, 2025 by

If you're constantly getting hit with EDI chargebacks, your system isn’t just costing you time — it's eating into your profits. Chargebacks for late ASNs, incorrect UCC-128 labels, or mismatched invoice data can quickly snowball, especially when working with large retailers like Walmart, Target, or Amazon.

At Crackerjack-IT, we help businesses fix the root causes behind EDI penalties. Here are five signs your current EDI setup needs a serious tune-up.

1. You’re Relying on Manual Intervention to Catch Errors

If your team is manually reviewing or adjusting EDI documents before they’re sent, that’s a red flag. Manual steps introduce delays, increase the risk of human error, and create a bottleneck that’s impossible to scale.

A properly tuned EDI system should:

  • Auto-generate compliant documents

  • Validate against trading partner rules

  • Alert you only when something goes wrong

2. ASNs Are Frequently Late or Rejected

Advanced Ship Notices (EDI 856) are one of the most common sources of chargebacks. If your ASN isn’t generated in real time or doesn’t match the PO or shipping label data, retailers will penalize you — and fast.

Common issues include:

  • Delayed ASN triggers from your WMS or ERP

  • Inaccurate carton or pallet-level packing data

  • Mismatched UCC-128 labels

3. You’re Using a “One-Size-Fits-All” EDI Solution

Generic EDI tools might work for simple trading partners, but complex retail compliance requires customized mapping, logic, and sequencing. If your solution can't be tailored to each partner’s specs — or you're stuck waiting weeks for support — it’s time to upgrade.

At Crackerjack-IT, we specialize in custom EDI setups that follow SOPI (Shipment, Order, Pack, Item) and support unique requirements from each retailer or distributor.

4. Your Invoices Are Constantly Flagged

The EDI 810 invoice is another common source of chargebacks. Small mismatches — like incorrect item costs, tax calculations, or missing reference numbers — can lead to rejections or delayed payments.

A healthy EDI system will:

  • Pull real-time pricing and tax data from your ERP

  • Validate invoice content against POs and shipment data

  • Automatically attach required references (like PO number, vendor ID, etc.)

5. You’re Getting Chargebacks — But Don’t Know Why

If your EDI provider or internal team can’t clearly explain the cause of chargebacks — or worse, can't fix them quickly — your system is broken. EDI should create transparency, not confusion.

At Crackerjack-IT, we monitor transactions, log every failed transmission, and proactively flag mapping issues. That means fewer penalties and more time focused on growth, not damage control.

The Crackerjack-IT Tune-Up Difference

We’ve helped dozens of companies reduce or eliminate EDI chargebacks by:

  • Auditing current EDI maps and workflows

  • Automating ASN and invoice accuracy checks

  • Customizing integrations for Shopify, ApparelMagic, 3PLs, and ERPs

If your chargebacks are piling up, don’t wait for the next penalty to hit. Let’s get ahead of it — and optimize your EDI before your margins take another hit.