What is Deduction Code 11?
Code 11s generate when cost differences occur for specific items, such as item cost differences between the invoice and the purchase order.
Common Root Causes 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 11 disputes are very difficult 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 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 send an updated EDI 850 or cancel and send a new EDI 850. 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?
You can dispute Code 11s in the Accounts Payable Disputes Portal in Retail Link to prove the incorrect PO price. If the dispute is denied, you should still contact your buyer directly to request a payback.
How to Dispute Invalid Code 11s
Supporting Documentation:
Written documentation (emails, etc.) with the buyer showing any changes/custom pricing agreements for the timeframe.
Invoice (EDI 810) showing correct cost and allowances.
PO discrepancy email sent to the buyer.
If a PO maintenance email was sent, a copy of that email is also needed.