Code 53s are generated when there is a truckload allowance listed on your OSA, but not on the invoice. 

Can it be Disputed?

Yes, using Direct Commerce.

How to Prevent Valid Code 53s

  • Verify all information and terms on your PO prior to fulfilling an order.
  • Ensure you have written correspondence from your buyer for any special deals.¬†
  • Review POs before accepting them.
  • Check with your EDI provider to make sure applicable allowances are being included on invoices.

Can it be Disputed?

Yes, Code 53s can be disputed through the dispute portal 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.

The common scenario for invalid code 53s 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 through the dispute portal and showing that the correct amount was already withheld can often overturn the deduction.

How to Dispute Invalid Code 53s

For the scenario mentioned above, try to dispute through the Direct Commerce portal first. For other scenarios, the only recourse would be to talk to your Buyer directly.

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