Walmart Deduction Recovery

You're losing too much money to Walmart deductions. Understanding, disputing, and preventing Walmart deductions feels like an impossible task, and can take up hours of your team's time.

Posted on May 13, 2022 by Walmart Supplier News
Walmart Supplier Blog > Walmart Deduction Recovery

What are Walmart deductions?

Put simply, a deduction is a fee or chargeback issued by Walmart against a supplier's invoices. Suppliers invoice Walmart for products that Walmart has purchased, and have a reasonable expectation that these invoices will be paid — in full.

In reality, this is rarely the case. Walmart assesses fines, or chargebacks, on almost every invoice that they receive from their suppliers. These fines can be related to:

  • On-Time and InFull (OTIF) exceptions
  • Supplier Quality Excellence Program (SQEP) noncompliance
  • ASN errors
  • Package labeling requirements
  • Various other reasons

Disputing Deductions

Unfortunately, the burden of proof is on the supplier to dispute that certain chargebacks were taken incorrectly. This process often involves the very time-consuming tasks such as gathering documentation from internal sources and third parties — freight carriers, 3PLs, etc.

It often requires many hours of your team's time to research each dispute individually, gather the appropriate documentation, and submit the proper documentation — one dispute at a time!

Automated Solutions

Fortunately, there are some big brains out there who have developed an automated, cloud-based solution for disputing Walmart deductions.

Our favorite tool that we use for our clients is SupplyPike's Deduction Navigator application. This application largely automates the time-consuming task of researching individual Walmart deductions and gathering the appropriate documentation necessary to dispute the deductions and recover your money.

Scheduling a tour

Schedule a free tour to learn more about the features and benefits of Deduction Navigator. The tour can even display your company's actual invoice and deduction data to help you visualize the full capabilities of this powerful application.

More from Walmart Supplier Blog

Walmart offers different freight terms for suppliers — Prepaid and Collect. In this section, let's explore the pros and cons of each freight term and help you determine which is the best fit for your company.

Walmart has their own language, that's no secret. But, did you know that quite a few of these acronyms and account metrics that you hear discussed are actually common retail metrics, not just Walmart metrics?

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