If you’re in business with Walmart, you’ve likely been hit with your fair share of invoice deductions. You’re not alone. Suppliers typically see deductions plow through 22% of their total invoices. Luckily, Walmart has created a process to help suppliers get a percentage of their deductions paid back in a matter of months. We’ve outlined every essential step in Walmart’s Deduction Settlement Process, as well as some pros and cons, to help you determine the best route for getting your money back.
What is Walmart’s settlement process?
Walmart’s deductions settlement process involves negotiating a percentage of repayment for the deduction codes you receive for a period of time. The process is designed to provide a quick, easy way for you to clear out your backlog on all outstanding accounts payable claims.
Some quick highlights of the Settlement process:
- A settlement is applied to all open deductions in an agreed-upon timeframe
- Determined by the timeframe between two specific check numbers and check dates
- It excludes post-audit and Accounts Receivable claims
- Repayment is based on a percentage negotiation between Walmart and the supplier
What are the steps in a Settlement Process?
- Send an Excel document to firstname.lastname@example.org. See our example below.
- From there, the negotiation and 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.
- A sampling of Proof of Delivery for some of the claim codes will be requested by Walmart. Determining the validity of the claims based on the sample is what dictates the percentage of payback.
- The settlement offer is sent by Walmart via email and must be signed and returned by the supplier.
- The final copy for your record is sent to the supplier after all the appropriate parties have signed.
Supplier Number: XXXXXX
Re: Open Account Receivable Settlement covering the time period through XXXX, XX, XXXX
This letter is to propose a settlement to clear XXXX XXXX disputes with Walmart Stores, Inc. for all invoices and disputed claims dated through XXXX, XX, XXXX, Walmart check number XXXXXXX.
The disputed amounts submitted a total of $XX, XXX.XX. To settle the dispute regarding these amounts, Walmart will pay XXXX XXXX $XX,XXX.XX to clear all items described above.
By agreeing to accept this settlement offer, you agree that XXXX XXXX has already provided copies of all disputed claims/invoices for this time period and that XXXX XXXX will present no issues to Walmart in the future for any invoices and or disputed claims for this time period. You further agree that you hereby release Walmart Stores, Inc. from all claims, causes of action, demand damages, costs or attorney fees for the disputed amounts and, upon receipt of the agreed $XX, XXX.XX forever discharge Walmart Stores, Inc. with respect to the disputed claims.
You further represent to Walmart that you have the authority to enter into this settlement on behalf of XXXX XXXX.
This settlement offer does not include future claims filed by our Post Audit Department or product liability claims for the settlement time frame. These issues should be addressed when they appear on a check. This settlement does not guarantee future settlement offers on this account.
If you are in agreement with this offer, please sign this proposal and fax it to 479-XXX-XXXX.
Walmart will post the agreed payment within 10 business days of our receipt of this signed letter.
Any alterations to this agreement other than the authorized signature will void this offer.
When should you utilize Walmart’s settlement process?
Typically, utilizing the settlement process is best when you lack a deduction disputing tool or process that speeds up the research and submittal process of individual disputes.
Researching individual deductions takes a long time for the average supplier, so taking a loss of 50-70% of the deductions submitted through the settlement process may be worth the time spent when compared to alternatives.
When should you avoid using the Walmart Settlement Process?
- When you have the tools in place to quickly knock out the researching and disputing of each deduction individually
- We wrote a whole Industry Guide on Best Practices for Dealing with Retailer Deductions that you are welcome to download.
- When you want to maximize how much money you win back from retailers
- If you want to ensure that you are getting as much money back for invalid claims as possible, disputing individually is the way to go. A settlement process can result in a loss of more than 70% of deductions that could have been won back, due to poor sampling of data.
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 has become an established time and resource saver, 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.