"Canceled PO/PO Line" Defect

What is the "Canceled PO/PO Line" Defect at Walmart? 

The "Canceled PO/PO Line" defect is a part of Phase 1 of the SQEP compliance program. Phase 1 concerns itself with PO Accuracy.

In the updated Secondary Packaging Supply Chain Standards (SPSCS '23), Walmart separates this defect into two: "Canceled PO" and "Canceled Line," but the fines themselves in the SQEP Dashboard are categorized as "Canceled PO/PO Line." This may be so that Walmart does not double fine the same errors on a given PO or fine suppliers for every single line on a canceled PO.

In the SPSCS '23, Walmart defines "Canceled PO" as "Supplier ships against a PO after it has been canceled" and "Canceled Line" as "Supplier ships against a line item after it has been canceled" (186).

Simply put, don't ship against a canceled PO or PO line. Sometimes suppliers have the tendency to still partially ship on something that has been canceled, which is not necessary if there is a cancellation. Walmart isn't expecting anything on a canceled PO or PO line, so sending product could also result in an overage or Walmart not paying for items shipped.

Note: these page numbers are the ones at the top of each page in the SPSCS '23, not necessarily the PDFs page numbers. 

How to Prevent Valid "Canceled PO/PO Line" Defects

The key to avoiding this fine is knowing the ins and outs of the NOVA application, when the latest you can cancel a PO or a PO line is and checking Walmart's changes to POs as well.

It is important to familiarize yourself with cancellation codes in order to be able to seamlessly follow Walmarts changes to POs and to know how to effectively make changes to POs without falling out of compliance.

These are more relevant for avoiding OTIF fines, but they are still relevant for this defect. Sometimes the lines between OTIF and SQEP get blurred on similar charges. 

Can the "Canceled PO/PO Line" Defect be Disputed? 

Yes, in HighRadius, just like all other compliance fine disputes at Walmart. 

How to Dispute "Canceled PO/PO Line" Defects 

In the case of invalid "Canceled PO/PO Line" defects, the PO itself is all that can really be referred to, along with its history of changes.

These fines are fairly easy to dispute when they are invalid. If you receive a fine for shipping on a canceled PO/PO line, you can dispute it if there was never a cancellation by pulling the proof from NOVA. The OTIF scorecard can also be useful for verifying PO edit codes.

When filing a dispute, fill in the information for "Dispute Reason," "Amount to be Disputed," "Comments" (if applicable), and "Attachment" (for relevant documents). 

More SQEP: Continued Learning and Our Solution

For an exhaustive resource on all things related to SQEP compliance, download our SQEP Handbook.

If you would like more insight into your SQEP performance and a way to quickly and painlessly dispute invalid SQEP fines, schedule a meeting with a member of the SupplyPike team today!