In this article, learn about:
How pricing discrepancies might occur
How to prevent pricing discrepancies
Best practices for disputing pricing discrepancy post audit claims
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Post audit claims for pricing discrepancies typically occur when there is a difference between what Walmart expected to pay and how much money the supplier eventually received.
What Are Pricing Discrepancy Claims?
Any change in prices can lead to a pricing discrepancy, especially if there’s a communication breakdown between Walmart and the supplier.
To check the validity of a pricing discrepancy claim, compare the pricing on the purchase order with the pricing on the invoice. If the prices match, then there could be an invalid claim resulting from miscommunication.
Examples of valid pricing discrepancies could include:
A certain SKU is price protected at a store. However, not all units were captured when it was initially calculated, leading to a discrepancy in pricing.
A supplier approved a rollback with Walmart, but mistakenly charged them for the full amount.
Post audit claims for pricing discrepancies are relatively rare, especially compared to other post audit types such as excessive defectives. It’s important to keep pricing documentation and retain all communications regarding pricing, to be able to dispute pricing discrepancy post audit claims when they occur.
Related Reading: Code 11: Pricing Overcharge (Price Difference between PO and Invoice)
How to Prevent Pricing Discrepancies
As with every type of deduction, it’s generally better to prevent the issue in the first place, rather than having to dispute it after the fact. This is especially relevant to deductions included in post audits, which might occur years following the close of the transaction, making tracking down evidence and supporting materials all the more difficult.
Pricing discrepancies can best be prevented by:
Using clear language and structure when negotiating prices with your buyer. This will reduce communication errors and therefore pricing discrepancies. If you have a professional writer in your organization, it might be helpful to run your communications by them, to make sure that you are being as clear as possible.
If you want to ensure that the important information in these emails is communicated correctly, you might want to try bolding or CAPITALIZING all essential information.
You can also create a shared team folder, such as in Google Drive or Microsoft OneDrive, to have a designated place for documentation and communication. Having a shared folder can be extremely helpful in certain situations, such as if someone who has been communicating with Walmart leaves your organization and you don’t have access to their emails anymore.
Until updating product pricing is confirmed by both you and the buyer, make sure that your communications with the buyer are clear that the pricing is just an offer. Pricing discrepancies can occur if a buyer assumes an offered price is valid before both parties confirm.
Any gray areas in email communications can result in greater post audit revenue recovery claims. Let’s say you make a pricing offer to Walmart, but Walmart never accepts the offer. If your exchange about pricing is unclear and a third-party auditor reads your communications with Walmart, they might assume that the offer was accepted, resulting in a post audit claim for pricing discrepancies if you priced products at the original cost.
Keeping a table of pricing changes and their effective dates. This allows you to quickly identify invalid Code 11s, and helps to provide the necessary supporting evidence and the relevant transaction dates.
If the pricing on the purchase order (EDI 850) is incorrect, do not ship the product, and instead contact the buyer. Walmart will base its deductions on the purchase order price, which means that if the pricing on the EDI 850 is incorrect, the buyer will need to either send an updated EDI 850 or cancel the transaction and create a new EDI 850.
Ensuring that you’re double-checking your invoices (EDI 810). If your invoices aren’t being generated correctly, pricing discrepancies can result.
Related Reading: What Is Deductions Management?
How to Dispute Pricing Discrepancies in a Post Audit
You can dispute post audits over email with Walmart and the auditor. Be sure to include any supporting documentation when disputing, as you will need evidence for Walmart to reverse their claims.
Supporting documentation may include:
Any written documentation, including emails with the buyer, showing any pricing changes and/or custom pricing agreements for the timeframe stipulated in the claim packet.
Any invoices (EDI 810) demonstrating the correct cost and applicable allowances.
The email from Walmart noting any pricing discrepancies on the purchase order.
A copy of the purchase order maintenance email, if received.
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