Description
Code 60s are normally filed in addition to returns/defective claims. The return/defective claim would be the cost of the merchandise, and the code 60 is the handling fee for dealing with the returned/defective merchandise. You can find the specifics for your business in your supplier agreement under Returns, but normally the handling charger for code 60s is 10% of the cost of the merchandise. Ensure accuracy of Warranty section of Supplier Agreement and Walmart claims filed.
How to Prevent Valid Code 60s
Since code 60s are just the handling charge associated with returns/defective claims, to limit their occurrence you should focus on limiting the amount of returns/defectives claims you receive. This could include product/packaging improvements so you have fewer returns/defectives in the first place or negotiating a higher allowance with Walmart so you can better plan for the cost.
Negotiate terms into your supplier agreement where you are not liable for handling charges OR where handling charges are significantly lower than the standard 10% of the cost. It is not uncommon to negotiate handling charges as low as 1%, depending on the department.
Can it be Disputed?
Yes. Code 60s can be disputed with your buyer if your supplier agreement specifies that handlings are not to be charged. If your supplier agreement allows you to be charged for handlings, then your only recourse would be to try to dispute the original return deduction as invalid.
How to Dispute Invalid Code 60s
Where you dispute a code 60 depends on where it came from. In either case, Walmart's expectation is that the code 60 will be disputed along with the return deduction from the same claim (like code 94).
Returns from location 9462:
When the return deduction is issued from Walmart location 9462, this indicates that it is a Returns Center claim.
Returns Center claims have a dedicated dispute process, which Walmart outlines here.
In summary, to dispute these deductions, you must:
Download and review the backup details and documentation from APIS.
Fill out the Defective Merchandise, Handling Fee, and RTV Freight Claim Form with the claim number, invoice date, amount you are disputing, and the reason for the dispute.
Include the backup details and documentation for each claim.
Submit your claim by creating a case with Partner Support and selecting Returns > Returns Chargebacks > Defective Merchandise, Handling, and RTV Freight Expense Claims. You must include the documentation and forms mentioned above for your claim to be reviewed.
Other returns:
If the location is something other than 9462, then use the Accounts Payable Dispute Portal to submit your dispute. Be sure to include all claim lines together when disputing (i.e. - 94, 60, 44, 120)
If the APDP dispute is rejected, you can escalate to your buyer, especially if the code 60 deduction violates your supplier agreement.
Supporting Documentation:
Proof that the return generating the handling charges was invalid
OR
If disputing because your merchandise should not be returned, then provide the supplier agreement showing that the merchandise should not be returned to the supplier