Walmart Acronyms and Terminology Guide for Suppliers and Partners

Working with Walmart means learning an entirely new language. If you have ever read a Walmart email or Retail Link report filled with terms like MABD, OTIF, or SQEP, you know how quickly the abbreviations add up.

This guide was created to help you understand that language. It collects the most common Walmart acronyms and operational terms used by buyers, replenishment managers, accountants, and supply chain teams.

Supplier & Accounting Terms

• Supplier ID
  A 6-digit number assigned during Supplier Onboarding, it’s your unique vendor identifier across Walmart’s systems.
• Supplier Name
  The official business name is linked to your Supplier ID.
• Division
  Identifies the part of Walmart’s business (for example, Walmart U.S. or Sam’s Club).
• AP Department Number
  Internal Accounts Payable department number, appearing as Dept Number on checks.
• Assigned Department Number
  The 2-digit merchandising department ID (1–99), also known as the Accounting Department Number.
• Department Sequence
  A single digit (0–9) that helps identify your 9-digit supplier or agreement number.
• Store Number
  A specific number assigned to each Walmart or Sam’s Club location.
• PO (Purchase Order) Number
  The unique authorization number issued for ordering merchandise.
• PO Date
  The official date (MM/DD/YYYY) the purchase order was created.
• Invoice Number / Invoice Date
  The assigned invoice identifier and the date it was issued.
• Gross Amount (Gross Amt)
  The total amount of the transaction before deductions.
• Reason Code / Deduction Code
  A classification code that explains the reason for an adjustment or deduction.
• Deduction Description
  Additional details corresponding to the deduction reason.
• Currency Exchange
  Currency used in the transaction (e.g., USD).
• Check Number / Check Date / Check Amount
  The unique number, issue date, and total value of an issued payment.
• Control Number
  A microfilm tracking number used internally for referencing deduction documentation.
• Batch Number
  Currently a placeholder column (to be removed in future releases).
• Deduction Source
  Identifies the department or system that initiated a transaction — such as EDI, AP, AR, PPA, or CoOps/Deals.
• Fiscal Month / Quarter / Year
  Walmart’s financial calendar periods for transaction posting.
• Master Group & Deduction Category
  Walmart groups deductions under categories like Allowances, Invoice, Negotiated Funding, and Other, which are further refined into subcategories such as Freight, Discounts, Returns Cost, and Supplier Penalty Errors.

Supply Chain & Logistics

• DC (Distribution Center)
  A warehouse that consolidates freight from multiple vendors and redistributes it to stores and clubs.
• MABD (Must Arrive By Date)
  The deadline for when an order must be received. Missing it can trigger deductions.
• OTIF (On Time In Full)
  A key supply chain metric measuring whether shipments arrive both on time and complete.
• Backhaul (BH)
  When Walmart’s trucks transport supplier goods on their return trips — maximizing efficiency.
• Cross Docking
  Freight received at a DC is immediately prepared for shipment to stores without being stored.
• Drop & Hook
  A process where a driver drops a loaded trailer and picks up an empty one, reducing downtime.
• LTL / FTL (Less Than / Full Truckload)
  Freight classifications based on shipment size. LTL means shared space; FTL means a dedicated trailer.
• FOB (Freight on Board)
  Defines when ownership of goods transfers between seller and buyer in the shipping process
• ASN (Advance Ship Notice)
  An electronic notice sent before shipment, detailing what’s being sent and when it’s expected.
• Collect / Prepaid (COL / PPD)
  Freight payment terms, Collect means Walmart owns the freight upon pickup; Prepaid means the supplier pays until Walmart receives it.
• CPP (Collect Pickup Program)
  Walmart’s shared-cost transportation program where suppliers contribute to logistics expenses.
• HVDC (High Velocity Distribution Center)
  A type of DC specializing in high-turnover grocery and household goods.

Merchandising & Inventory

• SKU (Stock Keeping Unit)
  A unique code used to identify and track products.
• Modular / Planogram
  Walmart’s detailed layout showing exactly how and where items should be displayed on shelves.
• IMU (Initial Markup)
  The initial difference between cost and retail price, expressed as a percentage.
• Markdown (MD)
  A reduction in retail price to accelerate sell-through.
• BOH (Beginning On Hand)
  The quantity of inventory available before any updates.
• EOH (Ending On Hand)
  Inventory quantity after sales and adjustments.
• Instock %
  Percentage metric indicating if a product is available to sell.
• Aged Inventory
  Items held at a DC for 30+ days without new receipts.
• Replenishment
  The process of restocking merchandise based on inventory and sales data.
• Safety Stock
  Extra inventory kept on hand to prevent out-of-stock situations.
• GMROII (Gross Margin Return on Inventory Investment)
  Measures how efficiently inventory generates gross profit.

Store & Sales Operations

• Action Alley (AA)
  The main aisle in a Walmart store running front to back, prime space for promotions.
• Endcap
  A display area at the end of aisles designed to highlight key or promotional items.
• Side Counter / Gondola
  The main shelving unit used to display merchandise.
• Zoning / Zone Defense
  The process of tidying and restocking shelves, especially before store close.
• SOTC (Store of the Community)
  Localization strategy ensuring stores carry products suited to their local markets.
• S2S (Site to Store)
  Online orders shipped to a local store for free customer pickup.
• PUT (Pick Up Today)
  Customers order online and collect items the same day from a local store.

Compliance & Reporting

• SQEP (Supplier Quality Excellence Program)
  Walmart’s initiative to eliminate supply chain defects and enforce packaging and PO accuracy standards.
• Retail Link
  Walmart’s supplier-facing portal offering sales, inventory, and performance data.
• APDP (Accounts Payable Dispute Portal)
  Platform for suppliers to dispute invoice deductions or payment claims.
• MFA (Multi-Factor Authentication)
  Security layer requiring a verification code alongside your password to access Retail Link.

Financial & Payment Terms

• 2% 10 Net 30
  A common payment term: 2% discount if paid within 10 days, or full payment due in 30 days.
• Accrual Accounting
  A financial method recognizing revenue and expenses when earned, not when paid.
• AP / AR (Accounts Payable / Accounts Receivable)
  Walmart divisions responsible for outgoing (AP) and incoming (AR) payments.
• COGS (Cost of Goods Sold)
  All direct costs tied to producing or purchasing goods for sale.
• Gross Margin / Profit
  Difference between sales and the cost of goods sold.
• EDLP / EDLC (Everyday Low Price / Everyday Low Cost)
  Walmart’s core pricing and cost philosophy.
• VAT (Value Added Tax)
  A consumption tax applied at each stage of production (common outside the U.S.).

Seasonal & Event Codes

• BTS / BTC (Back to School / Back to College)
  Seasonal sales periods focused on school or college essentials.
• EOS / EOY / EOM
  End of Season / End of Year / End of Month, used in sales and accounting reporting.

• GO (Grand Opening)
  The first public opening event for a new store or club.

• Holiday Meeting
  Seasonal planning session outlining holiday merchandising and operations.

Extended Terminology (Fiscal, Deductions, etc.)

• Fiscal Month / Quarter / Year
  Walmart’s accounting periods run from February 1 to January 31.
• Master Group / Deduction Category
  How Walmart classifies different deduction transactions for reporting and audit purposes.
• Control Number / Check Number / Batch Number
  Internal tracking identifiers for payment, reconciliation, and microfilm backup.
• Reason Code / Deduction Source
  Categorizes the reason and department origin of any deduction or adjustment.