Description
A volume allowance is given on certain shipments coming through the warehouse. A code 54 occurs when this allowance is listed on the supplier agreement but not included on an invoice.
How to Prevent Valid Code 54s
Verify all POs are accurate before shipping and ensure invoices reflect the purchase order exactly.
Confirm with your EDI team or provider that allowances on your supplier agreement and PO are included on the invoices (EDI 810).
Double-check allowances specified in your supplier agreement appear on both the PO and invoice.
For any special deals, ensure clear documentation is provided to and acknowledged by the buyer.
Can it be Disputed?
Yes, this can be disputed through APDP.
The typical scenario for invalid code 54s is that your Supplier Agreement states that an allowance is supposed to be given off-invoice, but your EDI provider is actually giving the allowance off-line-item. In this scenario, the correct dollar amount is being withheld from the invoice, just from the wrong place.
How to Dispute Invalid Code 54s
Allowance disputes can technically be submitted through APDP. However, there are certain codes that Walmart has indicated are unlikely to be approved in APDP. Those are: Codes 50-59, 150, 151. The alternative is to attempt the dispute with your buyer. These deductions must be initiated with supporting documentation and approved by your buyer.