Description
A defective merchandise allowance is a credit directly offset against returns (merchandise cost) from the store. A code 59 occurs when this allowance is listed on the supplier agreement but not included on an invoice.
How to Prevent Valid Code 59s
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, Walmart allows disputes for invalid Code 59s through the Accounts Payable Dispute Portal (APDP) if you can prove that the allowance was actually given on the invoice. Otherwise, you will need to reach out to your buyer for assistance with a payback. While APDP technically allows disputes for code 59s, they can be difficult to win.
The common scenario for invalid code 59s 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. Disputing with your buyer and showing that the correct amount was already withheld can often overturn the deduction.
How to Dispute Invalid Code 59s
You can attempt a dispute in the Accounts Payable Dispute Portal (APDP). If that fails then send documentation to your buyer to request payback.