When dealing with a post audit from Walmart, it's essential that suppliers understand all the terms that might be used. Below is a glossary of commonly used post audit terms, as well as their definitions:
Term | Definition |
Advertising allowances | Predetermined cost reductions provided by suppliers to retailers to help cover advertising and promotional expenses |
Allowance calculations | The process of determining proper allowances based on supplier agreements |
Allowance claims | Post audit claims that occur when suppliers fail to provide agreed-upon contractual cost reductions to retailers |
AP deductions | Accounts payable deductions, which occur when Walmart paid an invoice but withheld payment for all or part of the invoice because of something that occurred related to that particular invoice |
APDP app | Accounts Payable Disputes Portal, an application within Walmart's Retail Link platform where suppliers can dispute deductions, track the status of their claims, and manage payments |
AR deductions | Accounts receivable deductions, which are reductions to money a supplier is owed by its retailers, often appearing as invoices from a retailer to a supplier for fines or disputes |
Area of responsibility | A code that identifies which specific department or division within Walmart has expertise and jurisdiction over each particular type of post audit claim |
Legal document that serves as a receipt for freight services and details the shipment contents and destination | |
Cash discounts | Type of allowance offering immediate price reductions for prompt payment or other specified conditions |
Centralized repository | A shared digital storage system where teams can archive communications and important documents for future reference |
Claim | A post audit claim is a type of deduction that Walmart suppliers receive after the original business transaction has already been completed and closed |
Claim packet | Documentation provided by auditors explaining the details and reasoning behind post audit claims |
Code 11 | A specific type of Walmart deduction for pricing overcharge (price difference between purchase order and invoice) |
Code 59 | Walmart’s deduction code for Defective Merchandise allowance |
Collect order | Orders where Walmart handles the shipping process rather than the supplier |
Collect suppliers | Suppliers who use Walmart's transportation services rather than arranging their own shipping |
Cube out | When a truck reaches its maximum volume capacity before reaching weight limits |
Data segments | Specific sections within EDI transmissions where different types of information are organized and transmitted |
Defective Merchandise allowance | Pre-agreed amount or percentage of defective products that retailers will absorb without charging suppliers |
Distribution centers | Walmart facilities where products are received, stored, and distributed to retail locations |
EDI 810 | EDI document representing an invoice |
EDI 850 | EDI document representing a purchase order |
EDI raw data | Unprocessed electronic data interchange information that contains transaction details |
Excessive Defective claims | Post audit claims for defective products that exceed the agreed-upon defective merchandise allowance |
Failure to Combine Loads claims | Post audit claim that occurs when a single purchase order is unnecessarily split between multiple trucks |
Freight on Orders Not in Full claims | Post audit claim type that occurs when suppliers short ship products, resulting in inefficient truck utilization and excess freight costs |
Gross amount | Total invoice value before any deductions or allowances are applied |
HI | The vertical component of TI/HI, referring to the number of layers that can safely be stacked on a pallet |
HighRadius | The online platform where suppliers receive and dispute AR deductions |
Institutional knowledge | Critical company information and expertise that employees accumulate over time and may take with them when they leave |
Item setup | Configuration process that defines product specifications and shipping constraints |
Less-than-truckload (LTL) carriers | Transportation companies that handle shipments smaller than full truck loads |
Load consolidation | Practice of combining multiple shipments or purchase orders into a single truck to improve efficiency |
Load constraints | Maximum limits defining how much product can legally and safely be loaded onto a truck for shipping |
Load efficiency | How effectively truck space and capacity are utilized when shipping products |
Logistics compliance | Adherence to shipping and transportation requirements set by retailers |
Logistics provider | Third-party company that handles transportation and shipping services for suppliers |
Master BOL | Primary bill of lading that covers an entire multi-destination shipment, with individual BOLs for each destination |
Net amount | Invoice value after deductions and allowances have been applied |
Off-invoice allowances | Discounts applied directly to the entire invoice, reducing the total amount paid upfront |
Off-line item allowances | Discounts applied to specific products/line items based on quantity purchased |
One-month deduction | When Walmart cannot link defective products to specific purchase orders and creates a claim covering all products within a single month |
Operational costs | Business expenses related to day-to-day retail operations that may be offset by supplier allowances |
Pallet stacking | Arrangement of boxes or products on pallets in layers for efficient shipping and storage |
Payment system records | Walmart's internal documentation tracking freight payments and shipment details |
Post audit claims | Claims made by third-party auditors on behalf of Walmart for various discrepancies discovered during audits |
Prepaid shipping | Shipping arrangement where the supplier pays transportation costs upfront |
Prepaid supplier | Supplier who pays freight charges upfront and may be subject to additional freight-related claims |
Pricing discrepancy | A difference between what Walmart expected to pay and how much the supplier charged |
Product availability | Whether sufficient inventory exists to fulfill complete orders as requested |
Product shortage | Insufficient inventory to fulfill complete orders as requested |
Promotional allowances | Cost reductions provided by suppliers to support retailer marketing and promotional activities |
Purchase order discrepancies | Differences between what was shipped and what was ordered, often leading to post audit claims |
Purchase order maintenance email | Email communication regarding modifications or updates to purchase orders |
Purchase order splitting | Dividing a single purchase order across multiple trucks or shipments |
Quantity allowances | Discounts or cost reductions based on volume or quantity of products ordered |
Rerouting | Changing a truck driver's route or destination during transit |
Returned products | Merchandise sent back to suppliers due to defects or other issues |
Rollback pricing | Temporary price reduction on products, often promotional |
Short shipping | Practice of sending fewer items than ordered or expected in a shipment |
SKU | Stock Keeping Unit, a unique identifier for each distinct product |
Store 9000 | Store number often used for both AR deductions and post audit claims |
Supplier agreement | Contract between supplier and retailer outlining terms, allowances, and responsibilities |
Supply chain management | Coordination of all activities involved in sourcing, procurement, production, and logistics |
Third-party auditor | External auditing firm hired by Walmart to investigate and process post audit claims |
TI | The horizontal component of TI/HI, referring to the number of boxes placed on each layer of a pallet |
TI/HI calculations | Method for determining optimal pallet stacking patterns based on the number of boxes per layer (TI) and layers per pallet (HI) |
Ticketing system | Software platform used to manage and track truck orders and cancellations |
TONU (Trucks Ordered Not Used) claims | Post audit claim type that occurs when suppliers don't use ordered trucks or when trucks are rerouted during transit |
Truck-related allowances | Pre-agreed deductions or credits applied to purchase orders related to transportation costs |
Truck setup | Configuration and planning process for loading trucks efficiently |
Underutilizing | Not making full or efficient use of available truck space or capacity |
Unsaleable merchandise | Products that cannot be sold due to damage, expiration, or other issues, often subject to specific allowance agreements |
Vendor agreements | Contracts between suppliers and retailers outlining terms, conditions, and financial arrangements |
Volume by purchase order | Measurement of space occupied by products from each specific purchase order |
Weigh out | When a truck reaches its maximum weight capacity before reaching volume limits |
Weight by purchase order | Total weight of products from each specific purchase order |
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