List of Walmart Deduction Codes Defined

“Why is Walmart refusing to pay the full amount of this invoice?”

Walmart suppliers are researching that question every month. As the company initiates more programs to improve supplier accountability (On Time In Full, Supplier Quality Excellence Program, etc.), deductions and fines are becoming more prevalent.

When Walmart feels a supplier has not met the terms of a purchase order or invoice, it deducts a portion of the payment based on the circumstance. Walmart notifies suppliers of why they are being penalized by deduction codes.

Most Common Walmart Deductions

While there are many deductions that can be issued from Walmart, most suppliers will only see a few over and over again. Some of the most common ones include:

Code 13: Substitution Overcharge

Walmart will issue a Code 13 when a supplier invoices for one item number but Walmart receives a different item number. If the item billed on the invoice is at a higher cost than the merchandise received, the supplier will be issued a Code 13 for the difference in cost.

Can it be disputed? Yes, but not easily. To dispute the deduction, go to Retail Link® and enter the supporting documentation in the Accounts Payable Disputes Portal (APDP). This includes the bill of lading, invoice, and proof of delivery.

Code 22: Merchandise Billed not Shipped

As its name suggests, Code 22 is issued when Walmart does not receive all the items it is billed for on the invoice. For example, if a store or distribution center receives 40 cases but the invoice is for 45 cases, a Code 22 will be issued for the 5 outstanding cases.

Can it be disputed? Yes. To dispute the deduction, the supplier needs to show that all invoiced items were shipped by going to Retail Link® and entering the information in the Accounts Payable Disputes Portal (APDP).

Code 24: Carton Shortage/Freight Bill Signed Short

A Code 24 is issued when an order is signed short by the store or distribution center. In other words, a bill of lading shows there is more merchandise than actually arrived in the shipment. Therefore, the POD is stamped as short.

Can it be disputed? Yes. To dispute the deduction, go back to the Accounts Payable Disputes Portal (APDP) in Retail Link®.

Code 25: No Merchandise Received for Invoice

If suppliers receive a Code 25, Walmart is claiming it received absolutely no merchandise on the invoice. This code is commonly issued when the invoice is sent too early and arrived before the shipment of merchandise.

Can it be disputed? Yes. To dispute the deduction, enter the supporting documentation in Accounts Payable Disputes Portal (APDP) in Retail Link® (invoice, bill of lading, purchase order number, proof of delivery, etc.). However, do not issue a second invoice! This will be considered duplicate billing and a Code 30 will be issued.

Code 47: Excessive Freight on Invoice Description

A Code 47 is issued if Walmart believes they have been billed too much for the freight charge.

Can it be disputed? Yes. Provide Walmart with a carrier bill showing the exact amount paid to the carrier.

Complete List of Walmart Deduction Codes

The following is a list of Walmart deduction codes, definitions, and corresponding EDI:

Paper Code



001 F1 Defective
002 15 Return recall
003 GG Unsellable merchandise
010 01 Price Difference as Documented
011 01 Price Difference between PO & Invoice
012 03 Invoice Incorrectly Totaled/Extended
013 A5 Substitution Overcharge
014 06 Short/Damaged (Trailer Seal Intact)
015 06 Pallets/Shrink-wrapped Short/Damaged
020 06 Concealed Damage
021 06 Concealed Shortage
022 59 Merchandise Billed not Shipped
023 06 Carton Shortage SL&C
024 06 Carton Shortage/Freight Bill Signed Short
025 A9 No Merchandise Received for Invoice
026 TI Carton Shortage – Misrouting changed FOB
027 06 Carton Damage – SL&C
028 06 Carton Damage – Frt. bill signed damaged
029 TI Carton Damage – Misrouting changed FOB
030 19 Duplicate Billing
031 MH PO number not on invoice
032 MF Multiple PO numbers on invoice
033 MG PO number incorrect on invoice
034 10 Pallet charge
035 55 Sales tax – state
036 55 Sales tax – city
037 DO Insurance
038 30 Stop-off charge incorrectly added
039 MC Freight cost on backorder
040 B8 Routing violation – excessive freight
041 SO Collect – should have been pre-paid
042 MB Backhaul/pickup allowance
043 RJ Merchandise S/B prepaid to consolidator
044 RL Freight on returned merchandise
045 21 Prepaid freight incorrectly added to invoice
046 RB Freight allowance
047 SF Excessive freight charge on invoice
048 21 Freight should be prepaid to consolidator
049 54 Freight cost to forward misrouted shipment
050 71 Advertising allowance
051 A8 Promotional allowance display/fixture allowance
052 D5 Volume allowance
053 D5 Truckload allowance
054 ZZ Warehouse allowance
055 A3 New location allowance
056 89 Allowance not given off invoice
057 D5 Quantity discount
058 OT Other allowances
059 82 Defective merchandise allowance
060 97 Handling charge as documented
061 37 Incorrect color/size allowance
062 98 Labor and handling
063 40 BOL addressed to wrong location
064 RH Early shipment
065 99 Late shipment
066 MP No PO number on carton
067 MN Incorrect PO number on carton
068 ME PO number not on BOL
069 MD Incorrect PO number on BOL
070 MO No item number on cartons
071 MM Incorrect item number on cartons
072 C9 Labor and handling
073 86 Duplicate payment
074 E1 Previous account – debit balance
075 MI Transfer of debit balance
076 C4 Buyer’s reserve
077 WO Overpayment of invoice amount
078 MQ Storage charges
079 GD Sample charges
080 76 Cash discount
081 FA Anticipation – vendor request
082 FA Anticipation – early payment of invoice
083 D6 Discount not taken at time of payment
084 L5 Interest on recovery of payment in error
085 RU Interest on overpayment
086 55 Excise tax
087 ZZ Other
090 D3 Unauthorized charge – system deduction
091 93 Merchandise destroyed – damaged/defective
092 15 Merchandise return – overstock/recall
093 04 Merchandise return – damaged merchandise
094 F1 Merchandise return – defective merchandise
095 A2 Merchandise return – wrong item
096 B5 Merchandise for repair/assembly – not returned
097 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

Deductions vs. Allowances

The chart above outlines reason codes for when Walmart is not paying the full amount of an invoice. While deductions may be unexpected to the supplier, allowances should be discussed well in advance.

An allowance is an agreement between Walmart and the supplier to meet specific terms for a cost discount. For example, the supplier may give Walmart a lower price for large bulk purchases of product. This would show up as an allowance and not a penalty.

It is very important to review your agreement with Walmart and anticipate allowances during the billing cycle. Many times suppliers forget Walmart is holding out an allowance and try to dispute. The suppliers’ accounting departments need to be aware of all allowance terms to save time in processing.

Can Walmart Deductions Be Disputed?

If a supplier feels they have received a Walmart deduction or penalty in error, most can be disputed (examples above). Any dispute needs to be thoroughly researched and backed with appropriate documentation before submitting to Walmart.

The hardest Walmart fines to dispute relate to On Time In Full (OTIF). Walmart takes a no-tolerance approach to merchandise arriving at its facilities late, early, and short on quantity. In rare instances, Walmart has waived OTIF penalties due to extreme weather, national catastrophes, and other large-scale impacts.


Receiving a deduction or penalty from Walmart does not have to be viewed as a negative. These Walmart fines can be indicators of where a supplier needs to make improvements in the supply chain to grow their business.

Researching documentation for disputing a deduction can be overwhelming. The accounting team at 8th & Walton can help. If you have questions about deductions, invoices, and other accounting procedures, request a free consultation with our experts.

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