Code 11: Pricing Overcharge (Price Difference between PO and Invoice)

What is Deduction Code 11?

Code 11s are generated when cost differences occur for specific items, such as item cost differences between the invoice and the purchase order.

How to Prevent Valid Code 11s

• It is a best practice to keep a table of all pricing changes and their effective dates so that you can quickly identify invalid code 11s
• Deductions are based on the PO price, so if the pricing on the purchase order (EDI 850) is incorrect do not ship the product and contact your buyer immediately. The buyer will need to make changes on a purchase order and either send an updated EDI 850 or cancel and send a new EDI 850. Walmart says that the buyer must authorize payback of pricing discrepancies in written form. 
• Confirm that invoices are being generated correctly (check your EDI 810s)

Can Code 11s be Disputed?

Sometimes. Although Walmart says that pricing issues aren't considered for payback, it is still technically possible to dispute an invalid Code 11 in the Accounts Payable Disputes Portal (APDP) in Retail Link if you can prove that the price on the PO and the Invoice in fact matched.

Walmart states that code 11s should only be disputed through APDP for Store claims and recommends talking to your buyer if you receive a code 11 from another source. That said, we have seen where it's possible to dispute a code 11 from other sources in APDP, so take that with a grain of salt.

If you have a scenario where the price on the PO does not match the price on the Invoice, a dispute in APDP is almost certain to be denied. However, if you are arguing that the price on the PO is incorrect you could still attempt to contact your buyer to plead your case. Technically, whenever you fulfill an order you are agreeing to t he pricing on that order, but we have seen scenarios where buyers might be lenient.

Root Cause Analysis for Code 11s

To perform a validity check on a Code 11, compare the PO pricing with the invoice. A Code 11 will be generated on Walmart’s end if the invoice is higher than the cost on the PO, and the difference will be removed from the check.

Understanding the pricing history is key to understanding whether the Code 11 deduction is valid or whether the deduction is the result of a pricing misunderstanding on Walmart’s end. Code 11s are very difficult disputes to win back for suppliers, so prevention is a better practice.

Either way, success in determining the validity of Code 11s comes down to detail alignment on the PO and the invoice for things like the item number, vendor pack quantities, and each costs. Valid Code 11s are usually related to a discrepancy in Walmart’s favor between one or more of these details on the PO and the invoice.

How to Dispute Invalid Code 11s

Supporting documentation:

• Proof that the pricing on the PO and Invoice matched
• Written documentation (emails, etc.) with buyer showing any changes/custom pricing agreements for the time frame
• Invoice (EDI 810) showing correct cost and allowances