What is Deduction Code 25?
Code 25s are triggered when Walmart claims to have received no shipment at all for the PO for which you are invoicing.
Common Root Causes for Code 25s
Timing is often a cause for Code 25s. If an invoice is sent too early, the invoice match might be attempted before the receiving is finished. Other potential causes are:
Accidentally sending a duplicate invoice for a PO. In this case, Walmart often deducts the cost of that invoice in the form of a Code 25 because, from their perspective, they have already paid for that order. To prove claim invalidity with certainty, you must find proof of delivery for a shipment that does not have a duplicate invoice whose price is the same as the PO.
Short payment terms that require the invoice to be paid before Walmart completes receiving. This can lead to mismatches between invoice and receipt data.
Failure to download the Advance Ship Notice (ASN) in the case of DSDC suppliers, preventing Walmart from acknowledging receipt of the goods.
Freight issues, such as shipments with incorrect barcodes or improper labeling on cases, which can delay the processing of goods at Walmart's distribution centers.
How to Prevent Valid Code 25s
Best practice is to not invoice before the order is shipped. If Walmart receives an invoice for goods not yet received, they will cancel the invoice.
Do not re-invoice once goods are delivered; rather, prove that the order was delivered. If you re-invoice after goods are received, Walmart will likely hit you with a Code 30 for duplicate billing.
Revisit your payment terms and, if needed, work with your merchant team to extend the terms to allow more time for the receiving process to be completed before invoice processing starts.
Can Code 25s be Disputed?
Yes. Provide the correct shipping documents to prove that the PO was delivered in full. Claims should be submitted through the Accounts Payable Dispute Portal. Walmart recommends against contacting your buyer for this claim code, unless you wish to discuss your payment terms.
How to Dispute Invalid Code 25s
Supporting Documentation:
Freight bill showing the shipment was picked up in full.
Collect: Bill of Lading signed by the driver showing the PO was picked up in full. The Purchase Order number should be clearly noted on this document.
Prepaid: Proof of Delivery showing the PO was received in full. The Purchase Order number should be clearly noted on this document.
Invoice (EDI 810) showing the order quantity.