What is Deduction Code 13?
Code 13s are filed when the supplier invoices for one item number but Walmart received a different item number. This will always be caught if the item billed on the invoice is at a higher cost than the merchandise received – Walmart will file a code 13 for the difference.
Common Root Causes for Code 13s
Invoice issues:
Ensure that invoice fields are correctly filled. Incorrect use of item numbers or UPC fields can cause the system to misapply received items, leading to deductions.
Avoid generating the EDI invoice before the order has been completely filled. Premature invoices may have incorrect quantities or items.
Substitution or shipping errors:
Never substitute products to fill an order unless the PO is updated to reflect the actual items being shipped.
Rushed shipping can result in unapproved item substitutions as suppliers aim to meet timing metrics, leading to mismatches on the PO.
Receiving and handling mistakes:
Receivers may mistakenly apply the receipt of merchandise to the wrong PO number or misidentify items due to ambiguous packaging or labeling. Clear communication and labeling can help reduce these errors.
How to Prevent Valid Code 13s
Merchandise should be shipped and billed according to the PO description/item.
Do not substitute items when filling a PO; fill exactly as ordered.
Make sure your packaging/labeling for different items is distinct so that it is clear to the receiver which items were shipped.
Can Code 13s be Disputed?
Disputing Code 13s is extremely difficult, and it is rare to win a payback. Walmart says that they will not pay back for Code 13s, but you can technically dispute them in the Accounts Payable Disputes Portal in Retail Link. Walmart recommends against contacting your buyer for this claim code.
How to Dispute Invalid Code 13s
Supporting Documentation:
Bill of Lading showing correct items shipped (if the BOL shows individual product/UPC-level information).
A copy of the Invoice (EDI 810) to show what product was shipped.
Proof of Delivery showing items received.