JCPenney Compliance Violations and Expense Offsets UPDATED: 4/26/2017

Challenges to expense offsets reported on the Scorecard must be communicated within 60 days from the date the error is
reported on the Scorecard. The Scorecard is updated every Monday. Please include: Supplier Name, Supplier number,
reference number, and basis for challenge on your communication. Challenges to Supplier Compliance offsets not reported on
the Scorecard must be challenged within 60 days from the date of the offset document.

Contact SCHelp-sm@jcp.com regarding items listed in this section

Violations Code on Scorecard Expense Offset
See: Requirements>Order Management>Stores/jcp.com>Store /jcp.com PO
Purchase Order Compliance Manual>Shipping Dates and Policies

Early Shipment 1-7 days early: 5% of Merchandise Cost

1-7 days Early
8 + Days Early: 10% Merchandise Cost
Merchandise was shipped prior to the DI 8+ Days Early
(Minimum $5 for Stores, $100 minimum for
(delivery instruction) ship date .com)
Late Shipment
1-7 Days Late 1-7 days late: 10% of Merchandise Cost
Merchandise was shipped after the DI Cancel 8-14 Days Late 8 -14 Days Late: 15% Merchandise Cost
Date (includes shipments of orders canceled 15+ Days Late 15+ Days or More: 20% Merchandise Cost.
by JCP) (Minimum of $10 per carton for Stores, $100
minimum for .com)

See: Requirements>EDI Guidelines>Specification>Version 004030

ASN Issues
Carton is received without an ASN or has
invalid errors caused by ASN mapping or Missing/Invalid ASN $10 per carton
data errors
ASN missing any or all of the following: Bill
of Lading Number, Cartons/Pieces, Logistics Data Error $10 per ASN
Shipment Weight
Motor Carrier
For Indirect Import (POE) $1.00 per carton
Split Shipments suppliers only
See: Requirements>EDI Guidelines>Specification>Version 004030
Late ASN/ Invalid Date

Did not have a timely receipt of the ASN or

ASN ship date had invalid format. An
incorrect date is not grounds for reversal.
Carton Contents do not match ASN
Contents of carton do not match ASN.
Late ASN/ Invalid Date $50 per ASN
See: Requirements>EDI Guidelines>Specification>Version 004030
Contents of carton do not match $15 per carton-Stores, $100 per carton -
ASN. jcp.com

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 Violations Code on Scorecard Expense Offset
Ticketing / Labeling (Store) See:Requirements>National
See: Requirements>Order Management>Stores/jcp.com>Store
Brands>Home Page & UPC Policy /jcp.com PO
Manual>Shipping Dates and Policies
• Missing ticket, ticket in carton, not
attached to merchandise
• Barcode unscannable
• Item not on PDB or UPC not cross-
referenced missing and or incorrect Point of Sale (POS) Ticketing
$.50 per unit; Minimum $10 per DI
JCP Retail price on ticket (Stores)
• ticket does not match merchandise
• other Retailers ticket received
• other ticket issues requiring re-ticketing
(Warehouse Only).
See: Requirements>National Brands>Home Page>Catalog Internet Ticketing
Ticketing / Labeling for .com Guidelines
• Missing ticket
• Run together jcp.com number or SKU
• Incorrect ticket placement
• Ticket format not JCP standard
• Wrong barcode
• Font too small
• jcp.com number or sku omitted
• Barcode unscannable/Bad Barcode
• Ticket does not match merchandise
description Ticketing / Labeling jcp.com $0.50 per unit, minimum $100 per PO.
• Repeat occurences labeling problems
• Item not on PDB or UPC not
crossreferenced
• Special carton markings
• Incorrect special carton markings
• Non-spillable battery warning
• ORM-D required
• Ticket not visible to scan
Missing or Incorrect Merchandise
$0.50 per unit, minimum $100 per PO
Identification Label (MIL)
RFID See: Requirements>RFID>RFID Ticketing Standards
Missing Tag, Tag Loose in Carton,
Incorrect Tag Placement, Tag Does Not $.60 per unit - $3 minimum per DI. Beginning
Read, Tag Read But Does Not Match POS RFID Tagging 03/02/2014-Use of an unapproved RFID print
Ticket, Tag Read - Matches POS Ticket - provider-$1000 per incident minimum
Wrong Merchandise
Bulk Orders (Stores only) See: Requirements>Apparel>Stores>select corresponding category
Multiple SKU's received in a single carton
Bulk - Multiple SKUs per carton $50 minimum- $5 per carton after 5 cartons
for a bulk order

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 Violations Code on Scorecard Expense Offset
Fill Rate [Stores Only] (Receipts compared See:
See: Compliance>Compliance
Requirements>Order Reminders>Fill Rate Tolerance and
Management>Stores/jcp.com>Store OffsetPO
/jcp.com
to Order at SKU/Qty level) Changes
Manual>Shipping Dates and Policies
Substitution-10% of merchandise cost.
Substitution
Fill Rate - Substitution On Order Minimum $50
POMPO - 5% Tolerance - 10% of Merchandise
Fill Rate - Shortage On Order Shortage Cost. DCM - 5% Tolerance - 10% of
Merchandise Cost
Fill Rate - Overage On Order Overage Reported only, no Offsets
Item Status Codes

• Missing Order/Item Level Status Code

• Order/Item Level Status Code Conflict Missing/Invalid ASN Status Code $50 per ASN
• Invalid Item Status for Order Type
• Invalid Order Status For Order Type
• DE Used With Item Level Information

Master Carton Labeling

Defective/Misplaced GS1-128 See: Requirements>Shipping Carton Labels

Invalid, defective, improperly placed,

Bar Code Label Compliance $45 plus $7.50 per carton
unscannable (including fold issues), or
missing GS1-128 or required content label.
Content Label (Omitted, Incorrect- MAX 5
Shipping Label Compliance
SKU's Per Carton) $2.15 per unit or a minimum $100 per PO
(jcp.com)
Improper Content Label Placement whichever is greater.
EDI

PO Acknowledgement See: Requirements>Order Management>Purchase Order Acknowledgement

EDI 855 acknowledgement of POM PO
(accept, hold, or reject) is not received
within 3 business days
Transportation
TMS (Transportation Management
System) Authorization
No TMS Load ID or Routing Authorization
assigned to Stores DI or jcp.com PO.
Multiple Shipments
Multiple shipments made against S2M4
orders
TMS 754/ASN 856 Accuracy
Information on EDI 856 ASN does not
match EDI 754 for TMS.
Missing/Late 855 PO
$50 per PO.
Acknowledgement
See: Requirements>Logistics Transportation
Missing TMS Load ID/Routing
2% of merchandise cost; $10 minimum
Authorization
Multiple shipments made
$25 per DI plus $25 per Lot
against a DI
No/invalid Load ID on ASN $50 per ASN
ASN ship-to does not match 754
ship-to, ASN ship date greater $20 per ASN
than Available-To-Ship date
SCAC on ASN does not match
$10 per ASN
SCAC on 754

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 Violations Code on Scorecard Expense Offset
See: Requirements>Order Management>Stores/jcp.com>Store /jcp.com PO
See: Requirement>Direct to Consumer Factory Ship>Factory Ship Compliance
jcp.com Factory Ship Manual>Shipping Dates and Policies
Shipping 1-2 days after Original Estimated
On-time Shipments 25% of line item cost
Ship Date (OESD)
Supplier cancels on or before OESD 25% of line item cost
Supplier Initiated Cancel
Supplier cancels 1-2 days after the OESD 35% of line item cost

Supplier cancels 3+ days after the OESD Supplier Initiated Cancel 50% of line item cost

Supplier cancels item but invoices for

Invoiced canceled Items 10% of line item cost
product

Item returned to supplier but no returns

Missing Returns Notification 20% of line item cost
notification

No response to CFS EDI order status,

Order Status Update 10% of line item cost
requiring follow up by JCP CFS

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 Violations Code on Scorecard Expense Offset
Packaging
See: Requirements>Order Management>Stores/jcp.com>Store /jcp.com PO
Manual>Shipping Dates and Policies
Contact SCHelp-sm@jcp.com regarding items listed in this section
jcp.com-$2.15 per unit or a minimum $100
per PO whichever is greater. Stores-$.50 per
Container Too Large
unit or a $5.00 minimum per DI whichever is
Master Container Pack greater.
• Container Too Small (Stores/.com) jcp.com-$2.40 per unit or a minimum of $100
• Improper Bundling per PO whichever is greater. Stores-$.50 per
• Container overweight unit or a $5.00 minimum per DI whichever is
greater.
jcp.com-$1.01 per unit or a minimum $100
• Improper Use of Bands Master Container Sealing per PO whichever is greater. Stores $.50/unit
• Improper Tape Application (Stores/jcp.com) or a $5.00 minimum per DI whichever is
greater
• Folded Bag (Incorrect, Omitted, Too A dock-$1.61 per unit or a minimum $100 per
large, Too small, Too thin, does not fit PO whichever is greater. W dock- $2.20 per
product ) unit or a minimum $100 per PO whichever is
• Wrong Qty/selling unit greater.
• Omitted / Wrong finger hole in shoe
carton
• Mdse not packaged according to $2.40 per unit or a minimum $100 per PO,
warehouse class whichever is higher.
A-Dock $2.40 per unit or a minimum $100 per
• Carton (Too Small, Too Large, Too Thin) PO whichever is greater. , W-Dock $6.50 per
• Re-Shipper carton/bag omitted Selling Unit Packaging (jcp.com) unit or a minimum $100 per PO whichever is
greater.
$2.30 per unit or a minimum $100 per PO
Omitted Vinyl Bag
whichever is greater.
• Garment covers - omitted, too short, too
long too thin
$2.70 per unit or a minimum $100 per PO
• poor shoulder seal
whichever is greater
• Multi-piece hanging garment not
properly packaged
Inner Packaging (omitted, Not per Spec, $3.55 per unit or a minimum $100 per PO
Inadequate) whichever is greater

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 Violations
Over box w/internal packaging required
Code on Scorecard Expense Offset
jcp.com- "A" dock $6.85 or a minimum
See: Requirements>Order Management>Stores/jcp.com>Store /jcp.com$100
PO
per PO whichever is greater.
Manual>Shipping Dates and Policies "W" dock $7.85
Selling Unit Packaging (jcp.com)
or a minimum $100 per PO whichever is
greater.

Improper Sealing (On Polybag, On Carton, Selling Unit Packaging (jcp.com) $1.01 per unit or a minimum $100 per PO
Omitted on Bag, Omitted on Carton) whichever is greater.

• Individual poly-bag when master poly-

bag required
• Master poly-bag when individual poly-
bag required
• Poly-bag characteristics not per
requirements: bag too thick, too large, too
Selling Unit Packaging (Stores) $.50 per unit or a minimum of $5.00 per DI
small, not clear, vertical perforation
Garment on Hanger (GOH) whichever is greater.
omitted, shoulder seal (horizontal or
sloped) omitted
•Perforations not tearing correctly
• Poly-bag within Poly-bag
• Poly-bag sealing, not per requirements
• Excessive Trash

Merchandise not individually poly-bagged

or Multiple selling units in a master poly- Selling Unit Packaging (Stores) $.50 per unit or a minimum of $5.00 per DI
bag. Not poly-bagged according to pack Folded (Bulk Only) - whichever is greater.
size.
Poly-bag sealing, not per requirements.

• Individual poly-bag when master poly-

bag required.
• Master poly-bag when individual poly-
bag required
Selling Unit Packaging (Stores) $.50 per unit or a minimum of $5.00 per DI
• Poly-bag characteristics not per
Folded Ship To Mark For whichever is greater.
requirements: bag too thick, too large, too
small, not clear
• Poly-bag within Poly-bag
• Poly-bag sealing, not per requirements
• Excessive Trash
Hangers
• Missing and or Wrong Hangers.
• Loose wrong hangers in carton $.75 per unit
Hanger Errors (Stores)
Hanger in carton, not in garment $.50 per unit
$.50 per unit or a minimum of $5.00 per DI
Hanger concealed within a polybag
whichever is greater.

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 Violations Code on Scorecard Expense Offset
See: Requirements>Order Management>Stores/jcp.com>Store /jcp.com PO
Hangers Omitted Manual>Shipping Dates and Policies
$2.70 per unit or a minimum of $100 per PO
Wrong hangers Hanger Errors (jcp.com)
whichever is greater.
Improper Hanger Application
Hanger concealed within a polybag
Hangers bundled with twist-ties, nylon
pull ties, ribbon, rubber bands or any $.50 per unit or a minimum of $5.00 per DI
Hanger Bundling
other material. (Exception when Seeded is whichever is greater.
Approved)

Packaging Testing and Evaluation.

Failed Packaging Test Report Issue

Non- Compliance to our Factory Ship
Package testing Requirements
Similar To or Like Items Packaging Reports
issued
Not Currently Reported on
No offsets charged at this time
Scorecard

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 Violations Code on Scorecard Expense Offset
LOGISTICS TRANSPORTATION
See: Requirements>Order Management>Stores/jcp.com>Store /jcp.com PO
contact: DSSL9114-sm@jcp.com regarding Manual>Shipping Dates
items listed in this and Policies
section
See: Requirements>Shippping Instructions>General Instructions>General
Incorrect Consignment Address Transportation Instructions
Incorrect address on carton label and/or $50 per UPS/ package Full freight + Admin for
Wrong ConsignmentAddress
Bill of Lading motor carrier shipment
Incorrect Carrier
• Wrong carrier used
• Volume loads shipped via LTL carrier
Incorrect carrier
rather than TL Full freight + Administrative charge
• Lightweight shipments
Multiple shipment – same day to same
Multiple Same DayShipments
consignee
See: Requirements>Shipping Instructions>Small Package>UPS Shipping
Small Package (UPS) Instructions
Unauthorized use of small package
expedited service (I.E. Next Day, 2nd
Day…..)
UPS PLD/GS1-128 Shipment Paperwork and
Full freight + Administrative charge
Loading Violations
Nonconforming GS1-128 number in
Reference field # 1 of the UPS PLD
download. Must use full 20-digit number.
See: Requirements>Shipping Instructions>Special Merchandise>Factory Ship
Small Package (UPS ) 3rd Party Accounts Direct to Customer
• jcp.com and Stores Factory Ship:
• Using an Incorrect account number
• Made To Measure - Failure to provide
the 5 digit JCPenney store number in the
PLD reference # 2 Full freight + Admin charge
jcp.com to Consumer shipments that
should have gone consignee billing or
collect.
Shipment Paperwork and
Loading Violations
jcp.com (jcp.com/Internet) Factory Ship-
Failure to provide the PO and last 3 digits $2.00 per non-compliant package with no
of the Line Item ID # from the PO101 of Admin fee-
the EDI 850 in the PLD reference number
Field # 1 (for UPS) .

Unauthorized accessorial charges (I.E. Accessorial cost + Admin

Insurance, delivery confirmation etc.)

Media See: Requirements>Shipping Instructions>Special Merchandise>Media Mailers

Media expense offsets initiated by Home
Media
Office Full freight + Admin

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 Violations Code on Scorecard Expense Offset
Shipment Paperwork and Loading See:
See:Requirements>Shipping Instructions>General Instructions>General
Requirements>Order Management>Stores/jcp.com>Store /jcp.com PO
Violations Transportation Instructions
Manual>Shipping Dates and Policies

Origin Detention Detention charges + Admin

Trucks ordered but not used Full cost + Admin
• Sort and Segregate
• Weight & inspection Carrier charge + Admin
• Marking & tagging

Failure to maintain shipment integrity by

Actual carrier charge subject to a $500
Bill of Lading when tendered to carrier
minimum
Failure to tender SSC shipments to carriers
with PO integrity

Failure to use the VICS format Bill of

Lading with required data in the correct
fields. See requirements in Shipping Shipment Paperwork and $50 per B/L + Admin
Instructions for more information Loading Violations
Failure to provide the correct Bill of Lading
number in the 856 ASN

Failure to provide a separate Bill of Lading $25 per hour plus admin fee
for each trailer shipped via Truckload

PEPS manifest errors or missing manifest.

JCP Facility reports the number of hours to fix
the problem. Supplier is charged $25 per hour
W Dock merchandise not in nose of trailer
plus $50 admin. fee.
Mixed freight (Stores/jcp.com) vendor
error
Unauthorized plastic wrapped cartons
Improper Loading Minimum Charge of $250.00 per container
TMS Dynamic Routing Execution
Request to delete submitted data before
Admin
TMS routing has occurred
The following data on submission is in
error such that it causes TMS planned
routings to be incorrect or un-
executable:Weight Admin plus full amount of any costs incurred
Cube (volume) calculation TMS Execution (Plan and Load
Carton Count Issues)
Shipment Origin
More than two LTL requests for routing
for the same facility in the same week
from the same FOB. $150 for each additional LTL shipment
Requests for LTL routing to the same
facility with consecutive ATS dates.

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 Violations Code on Scorecard Expense Offset
Shipment was routed on a carrier other See: Requirements>Order Management>Stores/jcp.com>Store /jcp.com PO
than the one specified on the EDI 754 Admin
Manual>Shipping Dates and + full freight
Policies
transaction.
Shipment was routed to a destination
TMS Execution (Plan and Load Admin + full freight (incl. reroute to correct
other than the one specified on the EDI
Issues) destination)
754 transaction
Freight not ready at pickup time or
Admin + full freight amount of any costs
excessive loading time impacts
incurred
subsequent supplier pickup.
Deduction
Commercial Zone (Non-Compliance See: Requirements>Shipping Instructions>General Instructions>General
Deduction) Transportation Instructions

Freight charges on shipments made within

the same commercial zone as a jcpenney
consolidation center will be charged back
to the vendor, as provided in the Billing
Instructions. Commercial Zone offsets
listed on the scorecard are not
Compliance deductions, but are in support
of this policy.
Buena Park, CA (900-921, 923-
931)*
Haslet, TX (752, 761)*
Statesville, NC (286)*
Atlanta, GA (302)*
Min. $47.88 Per CWT $8.83, Max $434.70
Min $78.41, Per CWT $4.93, Max. $356.40
Min. $46.52, Per CWT $5.64, Max. $267.30
Min. $58.40, Per CWT $5.17, Max. $415.80

Please note: Purchase orders for .com can only be revised 1 time and must be requested at least seven days prior to the
original ship date.
Defenitions:
• Stores Division- Store Support Centers (SSCs) for distribution to stores
• Stores Logisctics Centers (RLCs) - Warehouse operations for distribution to SSCs or jcp.com Logistics Centers
• jcp.com Division (jcp.com) Logistics Centers (DLCs)for distribution to consumers. Orders are placed via jcp.com
• "A" Dock items- Selling unit that is less than 13 lbs and the size is less than 29" diagonal.
• "W" Dock items- Selling unit that is greater than 13 lbs and the size is above 29" diagonal.
• CWT- per hundred pounds of weight or "hundred weight"

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