Code 54

How to Fix Walmart Deduction Code 54: Warehouse Allowance

Deduction Code 54, or Warehouse Allowance (WA), occurs when a volume allowance, agreed upon in the supplier agreement for certain warehouse shipments, is not included on the invoice. A common scenario for invalid Code 54s is when the supplier agreement specifies an off-invoice allowance, but the EDI provider applies it off-line-item, leading to the...

Root Causes of Code 54
  • •Deduction Code 54, or Warehouse Allowance (WA), occurs when a volume allowance, agreed upon in the supplier agreement for certain warehouse shipments, is not included on the invoice
  • •A common scenario for invalid Code 54s is when the supplier agreement specifies an off-invoice allowance, but the EDI provider applies it off-line-item, leading to the correct dollar amount being withheld but from the wrong place
  • •Valid root causes include purchase order inaccuracies with incorrect information, unlisted allowances missing from the invoice, implicit shipping confirmation due to shipping on an inaccurate PO, incorrect EDI allowance codes being used, and allowance calculations being performed on the net instead of the gross amount of the invoice
Required Documents for Dispute
  • Invoice showing allowance
  • Supporting documentation approved by buyer
Step-by-Step Dispute Process
  1. 11. Verify if the allowance was actually given on the invoice. If so, gather proof.
  2. 22. Be aware that disputes for codes 50-59, 150, and 151 are unlikely to be approved in APDP.
  3. 33. The primary alternative is to attempt the dispute directly with your buyer.
  4. 44. Initiate the dispute with your buyer, providing all supporting documentation.
  5. 55. Ensure the dispute and supporting documentation are approved by your buyer.
How to Prevent Code 54 in the Future
  • Review POs before shipping to catch discrepancies early
  • Maintain detailed records of all buyer communications
  • Implement automated PO validation
  • Keep dispute logs to identify recurring issues
Frequently Asked Questions

How long does it take Walmart to process a Code 54 dispute?

Walmart typically reviews Code 54 disputes within 30-45 days through the Accounts Payable Disputes Portal. If denied, escalate to your buyer immediately with supporting documentation.

Can I prevent Code 54 deductions before they happen?

Yes. Implement pre-shipment PO validation, maintain detailed records of buyer communications, and work with your EDI provider to ensure correct processing. Keep a dispute log to identify recurring issues.

What's the success rate for Code 54 disputes?

Code 54 disputes have varying success rates (40-70%) depending on documentation quality. Disputes succeed when you provide complete proof that the deduction was invalid.

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