What is Deduction Code 21?
Code 21s are for concealed shortages that are not visible when the shipment is first received. Concealed shortages are defined in three ways: Inner Carton Shortages, Inner Pallet Shortages, and Part Supplier Pack.
Common Root Causes for Code 21s
A common cause is pack size discrepancies, where the actual number of units shipped doesn't match the purchase order or invoice. Another frequent issue is inadequate labeling, which can lead to misidentification of items or confusion during the receiving process. Finally, shortages may occur when the supplier fails to properly package the shipment or fulfill the purchase order, resulting in either a true shortage or a product substitution that wasn’t communicated or approved. Addressing these root causes can help minimize Code 21 deductions.
How to Prevent Valid Code 21s
Ship in full per the PO.
Make sure your packaging/labeling for different items is distinct so that it is clear to the receiver which items were shipped. Code 21s are sometimes filed when the receiver mistakenly identifies the items received.
Can Code 21s be Disputed?
Code 21s are usually not disputable. If you can prove that the shipment was in full, then it may be worth filing a claim in the Accounts Payable Dispute Portal. Walmart recommends against contacting your buyer for this claim code.
How to Dispute Invalid Code 21s
Supporting Documentation:
Purchase Order (EDI 850) showing requested quantities.
Proof of Delivery showing items received with the PO number clearly listed on the POD.
For store disputes, you’ll also need the matching delivery address.
For warehouse disputes, you need to include a POD signed for in eaches.