What is Deduction Code 60?
Code 60s are normally filed in addition to returns/defective claims. The return/defective claim would be the cost of the merchandise, and the Code 60 is the handling fee for dealing with the returned/defective merchandise. You can find the specifics for your business in your supplier agreement under Returns, but normally the handling charge for Code 60s is 10% of the cost of the merchandise. Ensure accuracy of the Warranty section of the Supplier Agreement and Walmart claims filed.
How to Prevent Valid Code 60s
Since Code 60s are just the handling charge associated with returns/defective claims, to limit their occurrence, you should focus on limiting the number of returns/defective claims you receive. This could include product/packaging improvements, so you have fewer returns/defectives in the first place, or negotiating a higher allowance with Walmart so you can better plan for the cost.
Negotiate terms into your supplier agreement where you are not liable for handling charges OR where handling charges are significantly lower than the standard 10% of cost. It is not uncommon to negotiate handling charges as low as 1%, depending on the department.
Can Code 60s be Disputed?
Yes. Code 60s can be disputed with your buyer if your supplier agreement specifies that handlings are not to be charged. If your supplier agreement does allow for you to be charged for handlings, then your only recourse would be to try to dispute the original claim for returns/damages overages.
How to Dispute Invalid Code 60s
Dispute Code 60s along with the return that led to the handling charges.
Supporting Documentation:
Proof that the return generating the handling charges was invalid.
OR
Supplier agreement showing that handling charges are not the supplier’s responsibility.