If you’re in business with Walmart, you’ve likely been hit with your fair share of invoice deductions from Walmart’s Accounts Payable team. You’re not alone. Suppliers often see deductions plow through as much as 22% of their total invoices. There are two primary ways to recover this money if the deductions are invalid: individual disputing and Walmart’s deductions settlement program.
In this article, we’re outlining every essential step in Walmart’s deduction settlement process, as well as some pros and cons compared to individual disputing to help you determine the best route for getting your money back.
Walmart’s deductions settlement process involves negotiating a percentage of repayment for the deduction codes you receive for a specified timeframe. The process is designed to provide a quick way to clear out your backlog on all outstanding accounts payable claims.
thru Check #:
By submitting this spreadsheet, I (the supplier) confirm that all invoices dated through the above timeframe and for merchandise shipped within the timeframe have cut to Walmart checks.
All fields are required
Do not combine claim codes
Do not place dashes in PO #
Invoice number should be as it appears on the check remittance
Store number should be as it appears on the check remittance
Do not include Claims filed by Walmart A/R, Traffic or Post Audit
|PO #||Invoice #||Store #||Check No.||Check Date||Deduction Amt||Deduction Code (number only)|
Subject: Settlement Offer/Supplier Name Vendor # Thru XX-XX-XXXX
I have received your account reconciliation proposal for V# XXXXXX going through XX/XX/XXXX totaling $XXXXXXXX. Walmart Stores is prepared to issue Supplier Name, an offer in the sum of $XXXXXXXX to finalize and reconcile this account through XX/XX/XXXX. This flat offer is based on the funding available on your account. Please review the attached offer presentation. If accepting this offer, please reply back to me within the next 5 business days with the name & title of your company official who will be authorizing and signing this reconciliation. Otherwise, reply back with the offer decline.
If we don’t receive a decision within the next 5 business days, we will assume that your company is declining this offer. At that point, we will go ahead and move forward with the cancellation and withdrawal of this offer, and we will set this reconciliation to be worked through the normal reconciliation process (pull random sampling items, research them, request POD if needed, arrive to an offer based off the sampling results). Your settlement sampling will be placed in order which was received and worked accordingly. You should know that it may take around 5-6 additional weeks to get the rest of the sampling part completed and have an offer for you. Also, keep in mind that an offer arrived from the sampling outcomes may result of being higher or lower than this offer we are presenting. If an offer arrived from the sampling results turns out to be lower than this current offer, we would not go back to this offer, but would stand firm with the offer arrived from the sampling results.
Let us know of your company’s decision as soon as you can.
Typically, utilizing the settlement program is best when you lack a deduction disputing tool or process that speeds up the research and submittal process of individual disputes. It also helps if you have a large number of chargebacks that you wish to dispute. Collect suppliers who do not have access to shipping documentation, such as BOLs, may find it more useful as well.
Researching individual deductions can take a long time for the average supplier, so taking a loss of 50-70% of the chargebacks submitted through the settlement process may be worth the time spent when compared to alternatives.
Be warned, however, that utilizing Walmart’s settlement process does not mean that there is no work on your side. The settlement team still requires extensive sampling for you to prove your case. While you may not have to provide proof for every deduction in the settlement, many suppliers still spend a significant amount of time preparing proof documentation for a settlement.
You should avoid the settlement process when you have the tools in place to quickly knock out the research and dispute of each deduction individually.
If you want to ensure that you are getting as much money back for invalid claims as possible, disputing chargebacks individually is the way to go. A settlement process can result in a loss of more than 70% of deductions that you could have won back due to insufficient data sampling.
In conclusion, Walmart designed its settlement process to serve as a way to increase Accounts Payable efficiency and reduce the cost of line-by-line deduction research. While it can sometimes be a timesaver, it’s still not the best option out there for winning back your deduction money.
After all, what if you could collect the necessary documentation to submit your disputes with a single click? SupplyPike’s deductions management platform makes that happen.
SupplyPike’s Deductions Navigator – One-Click Disputes
SupplyPike builds software to help retail suppliers fight deductions, meet compliance standards, and dig down to root cause issues in their supply chain.Visit their Website ➝