What is Deduction Code 87?
Code 87 is used as a catch-all for a variety of deduction issues, specifically when no other claim codes apply to the situation. Look at your claim copy for an explanation of how it is being applied in your situation. Backup can be requested by submitting the backup request form found on Retail Link.
Common Root Causes for Code 87s
A common example of a Code 87 is Walmart sending over one big bucket of invoices that have not yet been paid, like a year’s worth of damaged/defective codes rather than sending over an individual deduction for each one. You should always request more information by submitting the backup request form found on Retail Link when you receive a Code 87 so that you can see what can be disputed. Some examples of common root causes are:
Inaccurate item file management: Failure to ensure accurate and correct information is loaded into the system.
Duplicate invoicing/billing: Submitting the same invoice multiple times.
Invoice errors: Missing details, unauthorized charges, or incomplete invoice information.
How to Prevent Valid Code 87s
Since Code 87s could represent any number of claim reasons, preventing them can be a shot in the dark. However, some best practices to follow are:
Ensure accuracy: Make sure the item file is accurate, and verify that cost and pack quantities are correct before shipping. Also ensure invoices are transmitted with complete Item and UPC details.
Communicate pricing and deal changes: Notify your buyer of any price, deal, or allowance changes before their effective date, as required by your supplier agreement. Ensure new items are approved by the buyer and added to the item file before delivery.
Maintain accurate system data: If you manage your own items, ensure all details, including cost and pack size, are correctly loaded into the system. Any discrepancies between the item file and invoice may result in Walmart paying the lower price.
Can Code 87s be Disputed?
Depending on the root cause for the Code 87, it may be able to be disputed.
How to Dispute Invalid Code 87s
Request backup documentation by submitting the request for a backup form found on Retail Link and dispute in the Accounts Payable Disputes Portal. Pricing issues should be addressed through a buyer payback.