Walmart Deduction Codes: What They Mean and What to Do

Most suppliers meet Walmart deduction codes the same way: a check arrives lower than the invoice total, with a code number they don’t recognize. To make matters worse, they genuinely don’t know how to resolve the issue.

It’s a problem I’ve helped many clients work through. Sadly, these suppliers come to realize that the real cost usually isn’t the deducted dollars: It’s the hours their team spends trying to find a resolution.

Every code has a research path that begins before you look it up. It begins with reading the check, distinguishing between an accounts payable claim and an accounts receivable invoice, understanding the most common codes, and, most importantly, fixing the process so the discrepancy doesn’t happen again.

What Are Walmart Deduction Codes?

Walmart attaches a “deduction code” to payments it withholds against a purchase order or invoice. Each numeric code represents the reason for the withholding.

When Walmart determines a supplier hasn’t met the terms of a PO or invoice, it deducts a portion of the payment. The deduction code explains the reduced payment. In practice, terms like “Walmart supplier deduction codes,” “claims,” and “chargebacks” are used almost interchangeably, and the lines blur further once you add in Walmart vendor deductions tied to compliance programs.

On Time In Full and the Supplier Quality Excellence Program create their own fine layer, separate from the AP codes below. If your check shows an OTIF or SQEP charge, that’s a different research path than what I’m describing here.

Start With the Check, Not the Code

Before you open a single Walmart system, always look at the check itself. Three fields will give you almost everything you need to effectively research the deduction and identify the reason for it.

1. Division number. This tells you the system that likely generated the deduction. Two of the most common numbers I see are Division 5 (Walmart corporate) and Division 1 (a Walmart store).
2. Claim code and deduction reason. Read both together before doing research in Retail Link or HighRadius. The code tells you the category; the reason line shares specifics.
3. Store column. This is the fastest signal for AP versus AR. Store 9000 generally means the charge is recorded under an accounts receivable invoice, as researched in HighRadius. Store 8011 generally signals an accounts payable deduction, researched through AP resources instead.

Strangely, these are the steps most suppliers skip (a huge mistake). Reviewing the check takes five minutes. Not reviewing the check can lead to guessing games that take up an entire afternoon. This is why I run this sequence against every remittance.

Once you know the division number, the claim code, and whether you are dealing with an accounts payable or accounts receivable issue, you are ready to move forward.

Accounts Payable vs. Accounts Receivable: Where to Research

This is the distinction I see suppliers misread more than any other, and it’s an easy one to fix once you understand these two concepts:

• Accounts receivable means Walmart invoices you for money your company owes Walmart.
• Accounts payable means Walmart deducts money from an invoice your company submitted to Walmart.

Accounts payable (AP). Amounts Walmart deducts, or does not pay, from your company’s invoice to Walmart. Research these through the Accounts Payable Inquiry System (APIS), an application inside Retail Link®.

Accounts receivable (AR). Amounts that your business owes Walmart. AR is generally managed through HighRadius. Common AR charges include Walmart Connect, Scintilla™ charter billing, compliance fees, and additional allowances. Each maps to its own reason code inside HighRadius, not APIS.

If your team is still treating every deduction as an APIS problem, that’s worth correcting. It’s exactly what we cover in Walmart Systems training. Also worth watching: deduction visibility is expanding into Supplier One, which now surfaces a deductions overview and dispute status directly in the platform. Confirm what your team’s Supplier One access currently shows, since Walmart keeps rolling out new features.

The Most Common Walmart Deduction Codes

While Walmart can issue many deductions, most suppliers see only a handful over and over again. The list below contains the most common deductions; you can also download a full list of Walmart Deduction Codes.

Code 10: Allowance Difference as Documented

Code 10 happens when what’s in the order doesn’t match what’s on the bill (i.e. quantity, cost, or packaging). It’s disputable through APDP or your Merchant Team; bring records showing what was agreed versus what was actually charged, or documentation of a quantity discrepancy.

Code 11: Pricing Overcharge

Code 11 occurs when there’s a discrepancy between the item cost on the purchase order and the amount listed on the invoice. If filed in error, dispute it through APDP; a Buyer Payback is also possible, but you’ll need your buyer’s approval. Provide written records, such as emails or agreements, showing pricing changes during the period in question.

Code 13: Substitution Overcharge

Walmart issues a Code 13 if an item’s number differs from the one on the supplier’s invoice. If the item billed on the invoice costs more than the merchandise received, the supplier will be issued a Code 13 for the cost difference. You can dispute a Code 13, but it’s not an easy process, and you’ll need to enter a bill of lading, invoice, and proof of delivery into APDP.

Code 21: Concealed Shortages

Concealed shortages are issues that aren’t apparent upon initial receipt of the shipment. They fall into three types: inner carton shortages, inner pallet shortages, and partial supplier pack shortages. All three are disputable through APDP, but don’t contact the buyer directly. For store disputes, provide the invoice or PO number with a matching delivery address; for warehouse disputes, provide a POD signed for in eaches.

Code 22: Merchandise Billed Not Shipped

Code 22 is issued when Walmart doesn’t receive all the items it’s billed for. If a store receives 40 cases but the invoice is for 45, Walmart deducts for the 5 missing cases. This is the one deduction I’ve seen more suppliers run into than any other, and I’ve rarely worked with a supplier who hasn’t received at least one Code 22. It’s disputable: show that all invoiced items were shipped by entering the information into APDP.

Code 24: Carton Shortage / Freight Bill Signed Short

A Code 24 is issued when an order is signed short by the store or DC. The bill of lading shows more merchandise than actually arrived. It’s disputable through APDP with a stamped proof of delivery showing the shortage.

Code 25: No Merchandise Received for Invoice

A Code 25 means Walmart received your invoice, but no product. It is commonly issued when the invoice is sent before the shipment arrives. The distinction between Code 25 and Code 22 is this: Code 22 means some items arrived. Code 25 means no items arrived. It’s disputable through APDP with the invoice, bill of lading, PO number, and proof of delivery. Don’t issue a second invoice; it will only trigger a Code 30 for duplicate billing.

Code 30: Duplicate Billing

This occurs when two invoices are submitted for an identical purchase order. Don’t contact the buyer directly. File a dispute through APDP. Collect suppliers need a signed bill of lading with the PO number; prepaid suppliers need a signed proof of delivery showing the order received in full.

Code 80: Cash Discount

Refer to your Supplier Agreement for Payment Terms and Cash Discounts — for example, a 1% discount for payment within 10 days, net 30. This one is not disputable through APDP. If you believe there’s an error, request a Buyer Payback through your merchant with your fully executed Supplier Agreement.

Code 87: Other Difference

This claim is used when none of the other codes apply, often due to inaccurate item file management. It’s disputable through APDP, particularly for pricing issues that need a Buyer Payback.

Download a List of Walmart Deduction Codes and HighRadius Reason Codes

This free downloadable resource gives Walmart suppliers the information they need to stay on top of Walmart’s accounting codes — a practical tool for accountants, bookkeepers, and anyone on your team responsible for supply chain management.

Download the Walmart Accounting Reference Sheet.

Walmart Allowances Are Not Deductions

While deductions can catch a supplier off guard, allowances should never be a surprise as they’re agreed to well in advance.

An allowance is an agreement between Walmart and the supplier to meet specific terms for a cost discount. For example, a supplier might give Walmart a lower price for large bulk purchases; that shows up as an allowance, not a penalty. The distinction suppliers search for is this: a discount is typically a reduction tied to payment timing or terms (like Code 80’s cash discount), while an allowance is a negotiated, ongoing cost concession tied to volume, promotions, or similar agreed arrangements.

Review your agreement with Walmart and anticipate allowances during the billing cycle. I regularly see suppliers forget that Walmart is holding out an agreed-upon allowance and then try to dispute it. This is a completely avoidable waste of research time. Make sure your accounting department knows all current allowance terms before the check arrives.

How to Dispute a Walmart Deduction

Dispute mechanics are not one-size-fits-all; each call varies by code. This means that your first question should not be “How do I use the portal?” Instead, it should be “Can this specific code be disputed at all?”

A couple of charges can’t be disputed through APDP, regardless of how solid your documentation is: Cash Discount (Code 80) and most OTIF fines. For those, and several allowance codes in the 50s range, your recovery path runs through Buyer Payback. These depend on merchant approval, not the portal, and the buyer isn’t obligated to approve your dispute.

For codes that are disputable through APDP, the portal is located within Retail Link®, and our Walmart Dispute Portal guide covers enrollment and the step-by-step process. What matters most before you open it is knowing, code by code, whether you’re filing a dispute or requesting a payback, and having the right documentation ready either way.

Find the Root Cause So the Deduction Stops Recurring

Resolving a deduction isn’t the same as preventing it. I train suppliers not just to understand what a claim code means, but to ask why they’re getting it. Once you understand why you got a deduction, you are less likely to see that code again.

Three root causes account for most deductions:

• The invoice doesn’t match the purchase order. Sometimes the fix is as simple as correcting the invoice detail to match the PO, rather than disputing the same mismatch every cycle.
• Invoice timing. An invoice submitted before the product is actually received produces a Code 25.
• Shipping and labeling errors. A missing shipping label, mislabeled product, or quantity discrepancy drives most shortage claims, including the Code 22s mentioned above.

If you keep seeing the same code, the issue is likely your processes. Fixing the process gets you paid on time and prevents the need for deduction recovery.

How 8th & Walton Helps Suppliers Manage Deductions

I think of Walmart deduction management as capability building, not a one-time cleanup. Most suppliers I work with struggle for the same reason: their team is self-taught, or trained by a colleague who has since left, and that knowledge walked out the door with them. Understanding Walmart’s systems and resources is what lets a team identify root causes, resolve issues efficiently, and stop deductions from recurring.

Our model is straightforward: fixed fee, no commissions, no broker relationships. Our Team Training builds this capability inside your team directly, so the knowledge stays with your company instead of walking out the door with any one person. Our Advisory & Consulting team can work alongside you on active claims and system setup when you need more hands-on support.

If you’re not sure where your team’s deduction management stands today, a good starting point is a free Walmart Business Health Assessment — or simply schedule a call with our team.

Bottom Line

Every Walmart deduction code follows the same sequence: division number, then claim code, then the AP-or-AR call, then the correct system. Skip a step, and you’ll waste time in the wrong place.

But the research path only solves what already happened. The suppliers who stop seeing the same code month after month are the ones who go one step further and fix the process behind it, not just the check in front of them.

FAQs

What do Walmart deduction codes mean?

They’re the numeric reasons Walmart attaches to a payment it withholds against a purchase order or invoice: each code points to a specific circumstance, like a shortage, a pricing gap, or an agreed allowance.

How do I dispute Walmart deductions?

It depends on the code. Many AP deductions can be disputed through the Accounts Payable Disputes Portal (APDP) inside Retail Link® with the right documentation. Others, such as Cash Discount or most OTIF fines, aren’t disputable through APDP and instead require a Buyer Payback.

What is the difference between Walmart Code 22 and Code 25?

Code 22 means Walmart received the shipment, but some items billed on the invoice were missing. Some items arrived, but not all. Code 25 means Walmart received the invoice, but no product arrived.

What is the difference between HighRadius and APIS?

HighRadius manages Walmart’s accounts receivable invoices, including amounts Walmart bills you for, such as Walmart Connect, Scintilla™ charter billing, compliance fees, and additional allowances. APIS (Accounts Payable Inquiry System), inside Retail Link®, is where you research accounts payable deductions. These are amounts Walmart deducts from an invoice you submitted.

What does “co stk cont” mean on a Walmart check?

It isn’t a supplier deduction code. “Co stk cont” (company stock contribution) is a line that appears on Walmart associate pay stubs, not on supplier remittances.

What is “DhaReclaim” in connection with Walmart?

DhaReclaim is the name of a third-party deduction recovery company, not a Walmart remittance code or system. If you’re researching an actual deduction on your check, look for the numeric claim code instead.

What is a concealed shortage?

A concealed shortage is a shipment issue that isn’t apparent upon initial receipt of the merchandise. Walmart categorizes them as inner carton shortages, inner pallet shortages, or partial supplier pack shortages, all under Code 21.

What is the difference between a discount and an allowance?

A discount is typically tied to payment timing or terms, like the cash discount in Code 80. An allowance is a negotiated, ongoing cost concession tied to volume, promotions, or similar agreed arrangements, and it should never come as a surprise since it’s agreed to in advance.

Can Walmart OTIF fines be disputed?

Rarely. Walmart takes a near-zero-tolerance approach to late, early, or short deliveries. In rare cases, Walmart has waived OTIF penalties for extreme weather or other large-scale disruptions, but most OTIF fines are not disputable through APDP.

What is Walmart deduction management?

It’s the ongoing practice of identifying, researching, and disputing (where applicable) Walmart deductions, and, just as importantly, finding the root cause so the same deduction doesn’t recur.