How To Navigate Walmart’s Deduction Settlement Process

8 min read

Learn about:

  • What Walmart’s settlement process is
  • Which deductions you can settle
  • The steps in the settlement process

Disclaimer: As of Oct 2022, the Walmart Accounts Payable Team announced the end of the settlement process for AP deductions. Suppliers have until May 1st, 2023, to fully transition to the new process. For the most up-to-date information, take a look at the article, Walmart Discontinues Settlement Disputing.

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.

What is Walmart’s deduction settlement process? 

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.

Related Reading: The Differences Between Disputing Deductions Individually and Settlements

Some quick highlights of the deductions settlement process:  

  • Settlements apply to all open invoice-related deductions in an agreed-upon timeframe, determined by two specific check dates. To create a settlement, you must make sure that Walmart has paid all of the invoices dated within the selected timeframe.
  • You cannot submit settlements until Walmart pays all of the invoices. Example: 
    • Say you submit a settlement for July 1st to October 1st. Walmart must have paid for all of the invoices submitted within these three months for the settlement to go through.
    • You will only include the deductions taken from the checks within the specified timeframe.
    • So, you must have received payment for all of your invoices during this period, even if all of the invoices do not have deductions and are not involved in the settlement.
  • Most settlements only apply to open shipping-related deductions (codes 22, 24, 25). However, when you submit the settlement form, always include all invoice-related deductions, regardless of the code. Walmart may repay some allowance codes or otherwise offer advice on what your next steps should be.
  • The settlement process excludes post-audit and Accounts Receivable claims. The process only includes invoice-related deductions.
  • Repayment is based on a percentage negotiation between Walmart and the supplier. Walmart will prepare an offer via email to the supplier. The supplier then has the option to accept or reject the offer.
  • There are two types of settlement offers that Walmart may send you:
    • Flat offer: This settlement offer depends on the size of your settlement package.
    • Random sampling: You may reject a flat offer from Walmart for the possibility of a larger return. By selecting this option, you will forfeit your flat offer.
      • Walmart will pick a random number of invoices to research to create a new offer.
      • You may accept or reject this settlement. If you decline it, you must pull your entire settlement and add these deductions to your next timeframe.
      • For example, if you reject a settlement offer for July 1st to October 1st, you must change the settlement timeframe to July 1st to November 15th.

What are the steps in the deductions settlement process?

  1. Email an Excel document to Walmart’s settlement team at outlining all invoice-related deductions from the period in question that you believe to be invalid. See our example below. 
  2. From there, the revision phase begins with Walmart comparing the supplier’s paid details to the spreadsheet submitted. Walmart will then send back the spreadsheet with any suggested changes. 
  3. Walmart might request sample Proofs of Delivery (PODs) or Bills of Lading (BOLs) for some of the claim codes. These documents determine the validity of the claims and the percentage of payback. 
  4. Walmart’s settlement agent, Genpact, will email you an offer for you to accept or reject.
  5. Reply to that email that you accept the offer, and they will send the settlement information and letter to Walmart to approve and sign.
  6. Genpact will email you the letter for your signature(s).
  7. The settlements team will send the final copy for your record to the supplier after all the appropriate parties have signed.

Example of a deductions settlement workbook

Supplier Name:

Supplier #:


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 DateDeduction AmtDeduction Code (number only)

Example deductions settlement offer email

Subject: Settlement Offer/Supplier Name Vendor # Thru XX-XX-XXXX

Hello [Name],

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.

When should you utilize Walmart’s settlement process? 

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.

When should you avoid using the Walmart settlement process? 

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’s Deductions Navigator – One-Click Disputes

1-click disputes. Just like that. Get started.

Related Resources

Written by The SupplyPike Team

About The SupplyPike Team

SupplyPike builds software to help retail suppliers fight deductions, meet compliance standards, and dig down to root cause issues in their supply chain.

Read More
The SupplyPike Team



SupplyPike helps you fight deductions, increase in-stocks, and meet OTIF goals in the built-for-you platform, powered by machine learning.

View SupplyPike's Website