Code 120s are issued from the Returns Center and are similar to code 94s for damaged/defective returns. The difference is that code 120s are discretionary claims for Walmart. This means that, on your supplier agreement, you have elected to not have defective merchandise returned to you and have left the handling of it to Walmart’s discretion.
Often code 120s will come through in bulk for multiple defective items.
Code 120s are typically valid if the supplier agreement specifies that the supplier is responsible for the cost of defective returns.
One common reason for defective returns is damage in transit that is not seen until items are unboxed in store, at which point they are damaged out. Careful packaging and shipping through a trusted carrier can help alleviate some of this.
Since code 120s leave the handling of defective returns to Walmart’s discretion, you could consider renegotiating your supplier agreement to specify that defective goods should be returned to you, although this will usually come with a return freight charge (code 44). Some suppliers consider this option so they can identify the types of damage or defects to which their products are most susceptible.
Code 120s would only be considered invalid and disputable if they fall under one of the following scenarios:
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