Avoiding Common Walmart Deductions

Eden Shulman

By Eden Shulman, Content Writer

Last Updated March 27, 2025

8 min read

In this article, learn about:

  • The most common deduction codes from Walmart and their definitions

  • Best practices to avoid Walmart deductions

  • Checklists to make sure shipments don’t generate chargebacks 

Deductions, or chargebacks, can have a significant impact on a supplier’s bottom line. Some of them are easy to dispute, but others are far more difficult. In the end, many suppliers conclude that the best practice is to simply avoid getting deductions as much as possible. 

Here are some of the most common Walmart deduction codes and some tips on how to avoid them in the future.

Related Reading: Walmart Deduction Codes Explained Guide

Deduction Codes 10, 11, and 13: Pricing and Invoice Errors

What is Deduction Code 10: Price Difference as Documented?

Code 10: Price Difference as Documented is triggered when there are discrepancies in the allowances between the purchase order (PO) and the invoice. These discrepancies could include differences in allowances for the entire order or the net cost at the line item level. 

What is Deduction Code 11: Price Difference Between PO and Invoice?

Code 11: Price Difference Between PO and Invoice occurs when there is a discrepancy in the cost of specific items between the invoice and the PO. This discrepancy might happen if the actual price of an item differs from what was initially quoted to Walmart. 

What is Deduction Code 13: Substitution Overcharge?

Code 13: Substitution Overcharge arises when Walmart receives a different item number than what was listed on the invoice. This will typically be caught if the item billed on the invoice is at a higher cost than the merchandise Walmart received. 

Best Practices to Avoid Codes 10, 11, and 13

With pricing and invoice errors, Walmart will deduct the difference in price between the PO and the invoice as long as the price on the invoice is more than the purchase price. If the difference between the prices is in Walmart’s favor, they will not issue a deduction. 

If the pricing on the PO is incorrect, do not ship the order, as this can result in receiving deductions. Instead, immediately contact the buyer or replenishment manager to make changes to the PO. 

Be sure that:

  • The PO contains the correct information for item cost and allowances before the order is filled

  • The EDI data and PO data matches the allowances agreed upon in the online supplier agreement (OSA)

  • Invoices are being generated correctly, as Codes 10 and 11 often stem from incorrect EDI data

  • A table of all pricing changes and their effective dates is kept on hand, so invalid pricing invoice error codes can be quickly identified and disputed

  • The PO is filled exactly as ordered. If there is a disagreement between Walmart and the supplier as to whether the requested items should be in a certain shipment, the supplier should request an updated PO from their replenishment manager or buyer 

  • The packaging and labeling for different items are distinct, as Code 13s are sometimes filed when the distribution facility mistakes a shipment of one item for another, similar item

Deduction Codes 22, 24, and 25: Shortages and Shipping Discrepancies

What is Deduction Code 22: Goods Billed not Shipped?

Code 22: Goods Billed not Shipped arises when the quantity of items listed on the invoice does not match the quantity the distribution center reports receiving. A common scenario that might result in a Code 22 is if the distribution center stamps the bill of lading (BOL) as received in full, but the invoice listed quantities greater than what the facility claimed to receive. 

What is Deduction Code 24: Carton Shortage/Freight Bill Signed Short?

Code 24: Carton Shortage/Freight Bill Signed Short occurs when a store or distribution center signs for a shipment that appears to have fewer items than what was listed on the BOL. In comparison to Code 22, Code 24 might arise if a facility discovers on inspecting a delivery that the volume of goods does not match the order, and the facility then stamps the BOL as short. 

What is Deduction Code 25: No Merchandise Received for Invoice?

Code 25: No Merchandise Received for Invoice is issued when Walmart claims not to have received any items from the PO. As a result, deductions due to Code 25 are always for the full amount of the invoice. Invalid Code 25s are often an issue of timing, occurring when a supplier transmits an invoice to Walmart before the distribution center receives the delivery. 

Best Practices to Avoid Codes 22, 24, and 25

If changes need to be made to the PO or if you disagree with the quantity, do not ship, as you will likely receive a deduction. Instead, coordinate with the replenishment manager or the buyer to request an updated PO reflecting the necessary changes. 

Additionally, Walmart expects one PO shipment per pallet or per box, unless otherwise agreed upon with the replenishment manager. Outside of this agreement, do not comingle inventory, as including multiple POs in one shipment is one of the most common reasons for invalid claims of shortage. 

Be sure that:

  • The packaging does not obscure the items being shipped.

  • The number of items on the invoice and the number of items in the shipment match.

  • The EDI documentation is up-to-date, ensuring that the fulfillment information is flowing correctly to the warehouse.

  • Invoices are transmitted with Walmart item numbers. 

  • Item requests are set up correctly. For example, if Walmart requests on the PO that the supplier ship product as eaches, then make sure that the items are packed as eaches and that this is reflected on the invoice. 

  • All cases are shipped complete and as noted on the freight bill. Make sure to confirm with the warehouse or carrier the shipments are being loaded in full.

  • The driver notes the number of cases on the BOL, as the BOL needs to reflect an accurate case count to avoid deductions. 

  • The delivery arrives before the invoice. If Walmart receives an invoice for goods not yet received, they will issue a Code 25. 

  • The order is filled before the delivery date. 

Related Reading: Shortages, Damages, And Claims For Freight Shipments

Deduction Codes 50-59: Allowances and Promotional Deductions

Deduction codes from 50 through 59 are triggered by issues with allowances and discounts, typically if there is a problem with a previously agreed cost reduction for the retailer. These can occur when a particular allowance is listed in the OSA, but not on the invoice. 

Here is the full list of codes 50-59:

Best Practices to Avoid Codes 50-59

A common scenario that can result in receiving an invalid deduction code from 50 through 59 is when the OSA lists an allowance as given off the invoice, but the EDI provider is actually giving the allowance off a line item. Typically, allowance deductions can be disputed as long as the supplier can prove that an allowance was on the invoice and matches the OSA.

Be sure that:

  • The allowances on the invoice match what was agreed upon in the OSA.

  • The invoice is applying the allowances correctly. If not, contact the EDI provider to make sure that the correct data is being sent.

  • The data on the Advanced Ship Notice (EDI 856) matches the shipment exactly. 

Related Reading: The Difference Between Retailer Deductions And Allowances

Deduction Codes 60, 92, and 94: Returns and Defective Merchandise Deductions

What is Deduction Code 60: Handling Charge as Documented?

Deduction Code 60: Handling Charge as Documented covers the retailer’s handling fee for dealing with returned or defective merchandise. A Code 60 would arise in conjunction with the other return codes, which cover the cost of the returned or defective goods. 

What is Deduction Code 92: Mdse. Return (Overstock/Recall)

Deduction Code 92: Mdse. Return (Overstock/Recall) occurs when merchandise is returned to the supplier due to a product recall or overstock. An OSA should define a supplier’s liability in relation to potential overstocks. 

What is Deduction Code 94: Goods Returned/Defective Merchandise?

Deduction Code 94: Goods Returned/Defective Merchandise arises when a customer returns an item back to the retailer. This code is typically considered valid if the OSA states that the supplier is responsible for the cost of defective returned products. 

Best Practices to Avoid Codes 60, 92, and 94

Typically, a supplier’s OSA specifies its liability for product overstocks, recalls, and defective goods. An OSA will often include a defective allowance, negotiating a reduction in cost for the retailer under the assumption that a fixed percentage of goods will be returned as defective. If the cost of returns has not exceeded the amount the supplier paid through this defective allowance, then an issued Code 94 can be disputed. 

On the other hand, since Code 92s rely on recalls or overstocks, the specifics of disputing them will often necessitate contacting the buyer or replenishment manager. 

Finally, a Code 60 is normally filed in conjunction with other deductions related to returns or defective merchandise. To prevent a valid Code 60, focus on limiting the amount of returns or defective claims received in the first place. 

Be sure that:

  • Returns and defective merchandise are limited as much as possible, to prevent valid deductions. 

  • Terms are negotiated in the OSA to reduce liability for returns, defective merchandise, overstocks, recalls, and handling charges. 

  • The retailer has shipped the returned or defective merchandise back to the supplier, if they had previously agreed to in the OSA. 

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