In this article, learn about:
What a deduction Code 29 is
How to prevent valid Code 29s
How to dispute invalid Code 29s
What is Deduction Code 29?
Over the years, the function of Code 29 deductions has shifted. In the past, Code 29s were more commonly used to designate a Carton Damage—Misrouting Changed FOB deduction. More recently, they are more commonly used to indicate what Walmart is calling a Conversion/Interface deduction.
What is a Carton Damage—Misrouting Changed FOB Code 29 Deduction?
Carton Damage—Misrouting Changed FOB Code 29 deductions are generated when a shipment of damaged goods is sent to the wrong place because of a change in the routing. This error or perceived error in the routing makes understanding who is responsible for the damaged goods difficult to calculate.
Free on Board (FOB) determines the point at which responsibility for a shipment transfers from the supplier to the buyer. When misrouting or miscommunication about routing changes the FOB, and the goods shipped are considered damaged, then a Code 29 is generated as Walmart’s way of offsetting the costs involved with resolving the issue.
For example, goods that are damaged before the FOB are generally the responsibility of the seller, whereas goods damaged after the FOB are generally the responsibility of the buyer.
Related Reading: Code 28: Carton Damaged/Freight Bill Signed Damaged
How to Prevent Valid Code 29 Deductions
Because of how complicated Code 29s are, prevention happens along a few separate lines:
Making sure ship points and FOBs are set up correctly
Making sure shipped items are not damaged
Making sure items are shipped in a way that will avoid damages
In Supplier One, go to Ship Point Management on the left nav to view, create, and edit ship points. It’s important to note that Walmart requires a 30-day window after ship point creation before shipping can go through it.
Can Code 29s be Disputed?
Yes, though they are rare and typically low in cost, Code 29s can be disputed in APDP, like most other AP deductions.
How to Dispute Invalid Code 29s
There are some scenarios in which suppliers could be led to believe that they are receiving invalid Code 29s. If there haven’t been changes to the FOB/ship point, then a Code 29 is more likely to be invalid. In that case, dispute these deductions in APDP.
If you are shipping with a third-party carrier (3PL) who is consistently receiving damage charges, it sometimes works to pass damage charges on to them. But, most of the time, with Code 29s, the real issue is related to routing, not actual damages.
Supporting documentation for Code 29s is unique from most others, but these may be important to gather before disputing:
Purchase Order (PO)
Invoice
Inventory Received Report
Bill of Lading
Recover Your Revenue with SupplyPike
The supply chain is complicated, and things don’t always go as planned. When retailer fines and deductions start eating into your profits, SupplyPike is here to help. Our platform streamlines the recovery process, helping you identify and reclaim lost revenue so you can refocus on growing your business.
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