What is Deduction Code 50?
Code 50s are given when an invoice is missing an advertising allowance specified on the supplier agreement. Verify all information and terms on your purchase order prior to fulfilling an order. Your sales representative should have written correspondence for any “special” PO Deals. Suppliers should review POs before accepting them.
Common Root Causes for Code 50s
The common scenario for invalid Code 50s is that your Supplier Agreement states that an allowance is supposed to be given off-invoice, but your EDI provider is actually giving the allowance off-line-item. In this scenario, the correct dollar amount is being withheld from the invoice, just from the wrong place.
Potential root causes of valid code 50s are:
Purchase Order Inaccuracy: Purchase orders may contain incorrect information, resulting in discrepancies if shipped without correction.
Unlisted Allowances: Allowances on the purchase order might be missing from the invoice.
Implicit Shipping Confirmation: Shipping on an inaccurate PO can be seen as verifying the PO’s details, which may block later dispute attempts.
Incorrect EDI Allowance Codes: Using the wrong code for allowances in EDI may trigger further deductions.
Allowance Calculations on Net Instead of Gross Amount: If allowances are calculated on the net invoice rather than the gross amount, it may result in unexpected deductions.
How to Prevent Valid Code 50s
Verify all POs are accurate before shipping and ensure invoices reflect the purchase order exactly.
Confirm with your EDI team or provider that allowances on your supplier agreement and PO are included on the invoices (EDI 810).
Double-check allowances specified in your supplier agreement appear on both the PO and invoice.
For any special deals, ensure clear documentation is provided to and acknowledged by the buyer.
Can Code 50s be Disputed?
Yes, Code 50s are disputable if you can prove that the allowance was actually given on the invoice. Showing that the correct amount was already withheld can often overturn the deduction.
How to Dispute Invalid Code 50s
Allowance disputes can technically be submitted through APDP. However, there are certain codes that Walmart has indicated are unlikely to be approved in APDP. Those are: Codes 50-59, 150, 151. The alternative is to attempt the dispute with your buyer. These deductions must be initiated with supporting documentation and approved by your buyer.