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Code 50: Advertising Allowance (AA)

2020-07-27
2 min read

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 order. You sales representative should have written correspondence for any “special” PO Deals. Suppliers should review POs before accepting them.

How to Prevent Valid Code 50s

  • Code 50s would only be triggered when there is an allowance listed on your PO and it is not listed on the invoice. Because these are only triggered when an allowance is given on your PO, Walmart tends to be difficult about disputing them except for a specific scenario. You should review your allowances before shipping your PO.
  • Check with your EDI provider to make sure applicable allowances are being included on invoices.

Can Code 50s be Disputed?

Yes, code 50s can be disputed with your buyer if you can prove that the allowance was actually given on the invoice. 

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. Disputing with your buyer and showing that the correct amount was already withheld can often overturn the deduction.

How to Dispute Invalid Code 50s

With your buyer.

***Note
**Allowances are negotiated terms included in the supplier agreement or purchase order and will not be reviewed for repayment through the dispute portal. These deductions must be initiated with supporting documentation and approved by your buyer.

1-click disputes. Just like that. Get started.

The SupplyPike Team
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The SupplyPike Team

SupplyPike builds software to help retail suppliers fight deductions, meet compliance standards, and dig down to root cause issues in their supply chain.

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