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Walmart Deduction Codes Explained: iNymbus

Walmart Deduction Codes

In the intricate world of supply chain management, Walmart relies on a systematic approach to tackle various issues that may arise during procurement and distribution. An essential tool in this process is the use of Walmart Deduction Codes. These codes serve as a standardized means to identify and manage specific challenges, ensuring the smooth operation of Walmart's supply chain. In this article, we've outlined a comprehensive list of all Walmart deduction codes, along with detailed explanations and practical examples for the most common ones.


  1. Code 21: Concealed Shortages

    • Code 21 is used to identify concealed shortages, which refer to situations where the shortage of items in a shipment is not immediately visible when the facility first receives it. These shortages may only become apparent when the vendor pack is opened or when the shipment arrives at the store.

    • To dispute Code 21, you will need to provide the following documents: a Purchase Order (PO), Proof of Delivery (POD), Bill of Lading (BOL), and the corresponding Invoice.


  2. Code 22: Merchandise Billed not Shipped

    • Code 22 is applied when discrepancies occur between the billed quantity on the invoice and the actual quantity of items received by Walmart.

    • Example: Let's say Walmart places an order for 50 laptops from a supplier. However, when the shipment arrives at their distribution center, they only receive 45 laptops instead of the expected 50. In this case, Code 22 will be issued to record the discrepancy and address the outstanding 5 laptops.

    • To dispute Code 22, you will need to submit the following documents: a Purchase Order (PO), Proof of Delivery (POD), Bill of Lading (BOL), and the relevant Invoice.


  3. Code 24: Carton Shortage/Freight Bill Signed Short

    • Code 24 is used when the store or distribution center signs for a shipment that appears to have more items on the bill of lading (shipping document) than what was actually received in the delivery.

    • Example: Suppose a delivery truck arrives at a Walmart store with a shipment of televisions, and the bill of lading indicates there are 30 televisions in the shipment. However, upon inspecting the delivery, it becomes apparent that only 25 televisions were actually delivered. In such a scenario, a Code 24 will be assigned to acknowledge the shortage and mark the Proof of Delivery (POD) as "short."

    • To dispute Code 24, you will need to submit the following documents: a Drop Trailer Stamp or Shortage Stamp, Purchase Order (PO), Proof of Delivery (POD), Bill of Lading (BOL), and the relevant Invoice.
       
  4. Code 10: Price Difference as Documented

    • Code 10 is triggered when inconsistencies arise in the allowances, encompassing discounts, rebates, or other modifications, between the invoice and the purchase order (PO).

    • Example: Let's say Walmart places a purchase order for 100 units of a particular product from a supplier. The supplier agrees to provide a discount of 5% on the total order. However, when Walmart receives the invoice, the discount applied is only 3% instead of the agreed-upon 5%. In this case, a Code 10 will be generated to address the discrepancy in the allowance amount and ensure proper adjustments are made in the accounting records.

    • To dispute Code 10, you will need to submit the following documents: Supplier Agreement and Invoice


  5. Code 11: Price Difference between PO & Invoice

    • Code 11 is generated when there are cost differences for specific items between the invoice and the purchase order. This occurs when the actual cost of items ordered and received differ from what was initially quoted in the purchase order.

    • Example: Suppose Walmart places a purchase order for 50 laptops, with each laptop's cost specified as $800 in the purchase order. However, when the supplier's invoice arrives, the cost listed for each laptop is $850. This cost difference between the PO and the invoice triggers a Code 11 to indicate that the item cost doesn't match, and further investigation or adjustments are needed to reconcile the discrepancy.

    • To dispute Code 11, you will need to submit the following documents: an Invoice, a Purchase Order, and any Custom Documentation (if any)

 

 

Check our blog on “Best Strategies to Manage Amazon Shortages

 

Navigation Deduction Codes On APDP

Walmart APDP > Create Dispute > Enter Required Details (Vendor Code| Claim Code) > Click Search

You will a similar screen.

 

Walmart-Shortage-Code-1

 

 

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Complete List

To help you navigate Walmart's codes effectively, we've compiled a comprehensive table, along with their descriptions and typical reasons for application. Please refer to this table as a quick reference guide:

Paper Code

EDI

Definition

1

F1

Defective

2

15

Return recall

3

GG

Unsellable merchandise

10

1

Price Difference as Documented

11

1

Price Difference between PO & Invoice

12

3

Invoice Incorrectly Totaled/Extended

13

A5

Substitution Overcharge

14

6

Short/Damaged (Trailer Seal Intact)

15

6

Pallets/Shrink-wrapped Short/Damaged

20

6

Concealed Damage

21

6

Concealed Shortage

22

59

Merchandise Billed not Shipped

23

6

Carton Shortage SL&C

24

6

Carton Shortage/Freight Bill Signed Short

25

A9

No Merchandise Received for Invoice

26

TI

Carton Shortage – Misrouting changed FOB

27

6

Carton Damage – SL&C

28

6

Carton Damage – Frt. bill signed damaged

29

TI

Carton Damage – Misrouting changed FOB

30

19

Duplicate Billing

31

MH

PO number not on invoice

32

MF

Multiple PO numbers on invoice

33

MG

PO number incorrect on invoice

34

10

Pallet charge

35

55

Sales tax – state

36

55

Sales tax – city

37

DO

Insurance

38

30

Stop-off charge incorrectly added

39

MC

Freight cost on backorder

40

B8

Routing violation – excessive freight

41

SO

Collect – should have been pre-paid

42

MB

Backhaul/pickup allowance

43

RJ

Merchandise S/B prepaid to consolidator

44

RL

Freight on returned merchandise

45

21

Prepaid freight incorrectly added to invoice

46

RB

Freight allowance

47

SF

Excessive freight charge on invoice

48

21

Freight should be prepaid to consolidator

49

54

Freight cost to forward misrouted shipment

50

71

Advertising allowance

51

A8

Promotional allowance display/fixture allowance

52

D5

Volume allowance

53

D5

Truckload allowance

54

ZZ

Warehouse allowance

55

A3

New location allowance

56

89

Allowance not given off invoice

57

D5

Quantity discount

58

OT

Other allowances

59

82

Defective merchandise allowance

60

97

Handling charge as documented

61

37

Incorrect color/size allowance

62

98

Labor and handling

63

40

BOL addressed to wrong location

64

RH

Early shipment

65

99

Late shipment

66

MP

No PO number on carton

67

MN

Incorrect PO number on carton

68

ME

PO number not on BOL

69

MD

Incorrect PO number on BOL

70

MO

No item number on cartons

71

MM

Incorrect item number on cartons

72

C9

Labor and handling

73

86

Duplicate payment

74

E1

Previous account – debit balance

75

MI

Transfer of debit balance

76

C4

Buyer’s reserve

77

WO

Overpayment of invoice amount

78

MQ

Storage charges

79

GD

Sample charges

80

76

Cash discount

81

FA

Anticipation – vendor request

82

FA

Anticipation – early payment of invoice

83

D6

Discount not taken at time of payment

84

L5

Interest on recovery of payment in error

85

RU

Interest on overpayment

86

55

Excise tax

87

ZZ

Other

90

D3

Unauthorized charge – system deduction

91

93

Merchandise destroyed – damaged/defective

92

15

Merchandise return – overstock/recall

93

4

Merchandise return – damaged merchandise

94

F1

Merchandise return – defective merchandise

95

A2

Merchandise return – wrong item

96

B5

Merchandise for repair/assembly – not returned

97

97

Returned merchandise handling charge

150

82

Soft goods defective allowance

151

B2

Purchase rebate allowance

152

28

Wholesale club allowance

161

B2

Purchase rebate allowance

 

Troubled by Walmart Deductions?

Understanding and managing Walmart Chargeback codes is crucial for vendors. While this article has provided valuable insights on Codes, managing deductions is a different game altogether. That's where iNymbus comes in. Our solution streamlines deduction management, identifies trends, and empowers you to proactively address issues, saving time and money. Don't let deductions erode your profits. Explore our blog on best practices to manage Walmart Deductions.

 

 

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