What is Deduction Code 24?
Code 24s are given when the PO is received but signed short by the distribution center (DC). (i.e., you billed for 10 of an item, but only 5 were received at the DC).
Common Root Causes for Code 24s
One common cause is that the freight bill quantity doesn’t match the quantity received, leading to a shortage claim. Another frequent issue is the supplier not shipping according to the purchase order (PO), either shipping less than ordered or failing to properly document what was shipped.
How to Prevent Valid Code 24s
Ensure that all cases are shipped as noted on the freight bill.
Be sure all cases ordered on the PO are shipped complete.
Be sure the driver notes the case count on the Bill of Lading (BOL).
Can Code 24s be Disputed?
Yes. Provide the correct shipping documents to prove that the PO was picked up and delivered in full. This dispute would be approved by Walmart only if the product was counted by the driver and signed for prior to leaving the supplier’s facility. Claims should be submitted through APDP. Walmart recommends against contacting your buyer for this claim code.
How to Dispute Invalid Code 24s
Supporting Documentation:
Freight bill showing the order was picked up in full.
Collect suppliers: Bill of Lading showing the order picked up in full. The BOL must be signed by the driver, and the Purchase Order number should be clearly noted on the BOL.
Prepaid suppliers: Proof of Delivery showing the order received in full AND a drop trailer stamp showing the load was dropped at the DC yard. Walmart should provide a shortage stamp if the dispute is denied so you can dispute with your carrier. The Purchase Order number should be clearly noted on these documents.
Invoice (EDI 810) and ASN (EDI 856) showing the quantity shipped.