Code 94

How to Fix Walmart Deduction Code 94: Goods Returned/Defective Merchandise

Deduction Code 94, 'Goods Returned/Defective Merchandise,' is triggered when a customer returns an item or merchandise is deemed defective. This deduction is considered valid if the supplier agreement explicitly states the supplier's responsibility for defective return costs, or if the agreement includes a defective allowance and specifies supplier...

Root Causes of Code 94
  • •Deduction Code 94, 'Goods Returned/Defective Merchandise,' is triggered when a customer returns an item or merchandise is deemed defective
  • •This deduction is considered valid if the supplier agreement explicitly states the supplier's responsibility for defective return costs, or if the agreement includes a defective allowance and specifies supplier responsibility for costs exceeding this allowance
  • •It is also valid if the agreement requires defective goods to be returned to the supplier, and these goods are indeed returned
Required Documents for Dispute
  • Supplier agreement showing the agreed-upon defective allowance; Documentation showing the total cost of defective returns to date vs the amount paid in defective allowance; OR Supplier agreement showing that defective returns are not the responsibility of the supplier; OR Supplier agreement showing that defective goods must be returned to the supplier and a statement that goods were never received; OR Pricing info showing the actual cost of the item as less than the cost deducted per item on the claim
Step-by-Step Dispute Process
  1. 11. If the Code 94 is considered an invalid Virtual Claim (does not meet the criteria for validity as outlined in the 'Can Code 94s be Disputed?' section), dispute the claim on the Accounts Payable Disputes Portal in Retail Link. Virtual Claims are typically listed with division 13 and store number 9070.
  2. 22. For returns originating from walmart.com (listed under division 46 and store 9462), email [email protected] to dispute.
  3. 33. For returns originating from samsclub.com (claim numbers starting with 184919), email [email protected] to dispute.
How to Prevent Code 94 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 94 dispute?

Walmart typically reviews Code 94 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 94 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 94 disputes?

Code 94 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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