What are billable overages?

Billable overages are scenarios where Walmart has received a greater value in goods than what was already invoiced for on a specific PO. These are opportunities to get paid for goods actually received by Walmart.

These overages are often caused by misreceiving at Walmart, where they mistakenly receive one PO's goods under another PO. This can cause a shortage of one PO and an overage on another. In some cases, these shortages are reversed, but often, they are not, and the only way to get paid for these goods that were misreceived is by sending an additional invoice against the PO in which they were received and accepted.

How are billable overages identified?

Multiple data sources, including invoices, payments, and receiving data, are reviewed to find these billing opportunities. Two years is the window of time that you have to bill for these overages. SupplyPike waits 130 days after the invoice date on a PO before identifying the overage. This waiting period ensures that all goods have been received by Walmart and all initial invoices are paid to determine if there is a remaining overage amount.

The most important thing to know is that these are overages identified with Walmart's own receiving data.

Are SQEP Overage fines the same as these billable overages?

SQEP Overage fines are stand-alone charges issued against certain billable overages, but not all of them. For this reason, viewing the SQEP PO list is not a reliable way to identify all possible billable overages. In our analysis, we have been able to spot many more billable overage opportunities than those that appear on the SQEP list!

How are billable overage amounts calculated?

Received quantities are compared to invoiced quantities per item, along with pricing and vendor pack quantities, to identify items, quantities, and prices to bill for per item and PO. This also factors in items that are received short on the PO compared to the invoice, to only suggest billing for what Walmart data supports. Any allowances on the original PO should also be included on overage invoices that are sent to Walmart.

Are POs with deductions taken into account?

POs with shortage deductions as well as a billable overage are included in the Overages view. The guidance from the retailer is to dispute the shortage deduction first, and then invoice if there are any additional goods to bill for beyond what was already invoiced.

SupplyPike displays an overage status of Pending Shortage if the PO has a shortage deduction that needs to be disputed first before making the overage opportunity available to export.

For POs with any non-shortage deduction, these overage opportunities are presented like normal.

I don't overship goods, so why do I show overages?

Walmart sometimes misreceives goods. If they receive item #1 as item #2 on the same PO, you can end up with one item on the PO as over and another item as short. Typically, these will not result in a billable overage that SupplyPike will show.

Other times, Walmart may also mistakenly accept goods from one PO to an entirely different PO.

Whether it was a mistake on the shipping side or a receiving issue, when a PO has an overage based on Walmart's own data, and there is no deduction, billing for the overage allows you to get paid for the amount you are owed.

Are allowances accounted for?

Yes, if the original invoice on the PO had allowances, this will factor into the value of the goods received on any overage amount shown, so the overage amount owed will be after any allowances are applied.

How do I invoice Walmart?

You should invoice Walmart for these overage invoices roughly the same way as a regular invoice, you're just submitting a second invoice on the PO.

You'll supply the same general information on the invoice, with a new invoice number, along with overage items, quantities, and your normal item price(s) based on the PO you're billing for, and any allowances on the PO. Invoice Date can simply be the date you're generating the invoice.

The invoice number should be unique, just like all invoices, for accurate payment tracking. The overage invoice number, like all invoice numbers, should be numeric only and fit Walmart EDI requirements. We typically recommend adding a '00' or '99' to the beginning or end of the original invoice on the PO for tracking ease.

NOTE: It is NOT required to submit any additional proof outside of the invoice itself.

How quickly does Walmart pay overage invoices?

Walmart pays overage invoices at the same rate as regular invoices, i.e., with your standard payment terms.

How are overage payments identified?

SupplyPike keeps track of the PO numbers with billable overages, and monitors for new invoice numbers on these POs in order to spot new overage invoices and any payments on those invoices. Right now, we do require the new invoice number to have either been paid or deducted before we will reflect the overage payment inside of SupplyPike, so these will not show immediately after billing Walmart.

Can I get deductions on overage invoices?

It is possible to get a deduction on an overage invoice if Walmart doesn't agree on that particular PO. These deductions will enter into the Deductions app in SupplyPike, where you'll have the option of further trying to dispute or not. We often see disputes submitted and approved since these overage invoices are based purely on Walmart's own receiving data.

I'm unsure about billing Walmart for overages. What can you tell me to be reassured?

Suppliers have been billing Walmart for overages for years. Walmart reps have stated in public forums about the practice, supplying best practices. SupplyPike has helped hundreds of suppliers bill for overages and get paid on the vast majority of what is billed. An option exists to only start with a small sample of POs or a single month, go through the process and wait to get paid, to feel more comfortable with going after the entire 2 year window.