Code 54: Warehouse Allowance (WA)

2020-07-27
2 min read

What is Deduction Code 54?

A volume allowance is given on certain shipments coming through the warehouse. A code 54 occurs when this allowance is listed on the supplier agreement but not included on an invoice. 

How to Prevent Valid Code 54s

  • Code 54s 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 does not allow disputes through the portal. 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 54s be Disputed?

Only with your buyer. Dispute invalid Code 54s with your buyer if you can prove that the allowance was actually given on the invoice.

The common scenario for invalid code 54s 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 54s

Send documentation to 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.

Related Resources

Written by The SupplyPike Team

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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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