What is Deduction Code 80?
Code 80s are Accounts Receivable claims where Walmart believes they did not take the correct cash discount on an invoice and is trying to collect the full amount.
Common Root Causes for Code 80s
Questions around Code 80 validity typically arise from a misunderstanding with the Payment Terms and Cash Discounts in the Supplier Agreement. Cash discounts are typically calculated based on Receipt of Goods, not Date of Invoice, unless otherwise specified in the agreement. It's crucial that your accounts receivable team is well-versed in these terms.
However, there may be instances where invoices are paid beyond their terms due to:
Late invoice transmission: If invoices are not sent promptly, it shortens the time available for processing, leading to potential data misalignments. To avoid this, invoices should always be transmitted to Walmart in a timely manner to ensure payment aligns with your terms.
Failed invoice match: When an invoice does not match the corresponding receiver, it requires manual intervention, often delaying payment. Common causes for mismatches include shortages, damages, missing allowances, and pricing discrepancies. Ensuring invoice accuracy and alignment with the purchase order can prevent this.
Inaccurate terms: Incorrect payment terms entered on the purchase order or invoice can cause delays and confusion. Always verify that the terms on both documents are accurate and in line with the Supplier Agreement.
How to Prevent Valid Code 80s
Since a valid Code 80 is the result of a mistake by Walmart, there is not much that a supplier can do to prevent it.
Can Code 80s be Disputed?
Yes, if Walmart is claiming a higher cash discount than is allowed by your supplier agreement or co-op agreement, then you can dispute the claim in the High Radius portal.
How to Dispute Invalid Code 80s
Supporting Documentation:
Copy of your supplier agreement that covers the order in question, showing that the correct cash discount was invoiced for and taken.
Copy of the co-op agreement that covers the order in question, showing that the correct cash discount was invoiced for and taken.