Description
Code 77s are triggered when Walmart believes they have overpaid a supplier. This can occur in a few different scenarios — most commonly when an overage payment is later reallocated to cover a shortage on an unrelated PO, but also in connection with past shortage or pricing recoveries. In some cases, these deductions have been tied to activity from years prior.
Can it be disputed?
Yes.
How to Prevent Valid Code 77s
Code 77s are largely outside of a supplier's control, as they are initiated by Walmart's internal reconciliation process. Ensuring invoices are accurate and that overage billing reflects only what was truly shipped can help reduce exposure.
How to Dispute Invalid Code 77s
If after researching the deduction it appears invalid, submit it through Revenue Recovery for review. Supporting documentation will depend on the underlying reason for the deduction — if the Code 77 is tied to a shortage recovery, dispute with BOL/POD; if tied to a pricing adjustment, use relevant pricing documentation. If the Code 77 is related to an overage invoice, take extra care before disputing — review the check lines and total amount paid out on that PO, factoring in any PO paybacks, against what was actually owed. In some overage invoice situations, this research reveals the deduction is actually valid, making it better to accept and archive rather than pursue a dispute.