Me trying to hit compliance goals vs getting hit with a fine 🥲

Greetings Vendorville,

Just like in dodgeball, knowing your opponent's game plan can often give you the upper hand. Luckily, when it comes to Walmart deductions, there are only two main plans we could be challenged with: AP and AR deductions.

🥊AP Deductions: The Direct Hits 🥊

Accounts Payable (AP) deductions are like straight, fast throws in a game of dodgeball—direct and aimed at reducing Walmart's obligation to pay on your invoices. These deductions stem from various discrepancies related to invoice processing and can hit your bottom line hard if not managed properly.

Hits To Watch Out For:

Code 22: Goods Billed Not Shipped: This deduction occurs when there is a discrepancy between the items listed as billed on your invoice and the items actually shipped.

Code 24: Carton Shortage/Freight Bill Signed Short: This is applied when the physical count of cartons or items received by Walmart does not match what was expected as per the freight bill. It usually happens due to discrepancies during loading or shipping, or errors in freight documentation.

Code 25: No Merchandise Received for Invoice: This deduction is triggered when Walmart’s systems and physical checks find no record of receiving the merchandise that has been invoiced.

Strategies to Block AP Deductions

Always double-check your shipping documents. For prepaid shipments, review the signed Proof of Delivery (POD). For collect shipments, verify the Bill of Lading (BOL) to ensure all items were picked up.
Use Walmart’s Luminate to match the received quantities against your invoices. This is your shield—keep it strong.

AR Deductions: Sneaky Curveballs 😤

AR deductions are the curveballs that catch you off guard, where Walmart charges you for perceived discrepancies. These typically involve OTIF fines where delivery timings or quantities are mismatched, leading to chargebacks.

Counter Tactics for AR Deductions

Launch your counterattack by disputing OTIF chargebacks through Retail Link. This is how you can make that counterattack effective:

To create a "dispute," go to EIPP > Select either the OPEN (unpaid claims) or CLOSED BILLS (paid claims) tab.
Select the invoice(s) you wish to dispute.
Click 'Dispute', choose the reason from the dropdown, and enter the disputed amount.
Add detailed comments and any supporting documents.
Upload necessary files, confirm, and save your dispute.

We want you to win too!! 🏆 Which is why we have compiled some resources to help you do so:

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Rick’s Tips 💘

Rumor has One-Click Rick is undefeated in the dodgeball arena of Walmart deductions — and it’s true! We went and asked him how it does it, and his response was, "It all comes down to mastering Root Cause Analysis (RCA).”

“There are three common problem areas for deductions: Shortages, In-Full Charges and Allowances.

Shortages: Check your labels and count twice. Mistakes in labeling or packing can lead to major penalties.

In-Full Charges: Always ship exactly what was ordered—no more, no less. If you can’t fulfill it, cancel with the right reason code upfront.

Allowances: Keep your agreed discounts in check. If Walmart deducts more, dispute it with clear evidence from your agreement."

Let’s Circle Back 🌀

Dodgeball isn’t the only game you can win at! 😉

It's time for 'Who Wants to be a Supplier Millionaire?' where the stakes are high, but this time, the only thing you risk losing is your bragging rights.

Today's Million Dollar Questions Are:

1. In Walmart's supply chain, what does "OTIF" stand for?

On Time In Full
On Target In Full
On Time In Freight
On Track In Freight

2. What is the term for the penalty Walmart imposes for late or incomplete deliveries?

Delivery Fine
Compliance Chargeback
Supplier Penalty
Freight Fee

3. What is the purpose of the "Supplier Agreement" in Walmart's supplier relationship?

To set pricing terms
To outline delivery schedules
To define mutual responsibilities and expectations
To provide marketing guidelines

4. What is the "GDSN" in Walmart's supply chain operations?

Global Data Synchronization Network
General Distribution Supply Network
Global Distribution Service Network
General Data Supply Network

How did you fare in the hot seat?

If you're curious to see whether you have what it takes to be a 💸Supplier Millionaire,💸 the answers to the questions above are below:

A
B
C
A

❤️ Sincerely, Your Friends in Vendorville

SupplierWiki

Dodge Walmart Deductions 🥊