Common Retail Deductions From Major Retailers: A Supplier’s Guide

Ever wonder why so many deductions show up on your invoices from major retailers? If you work with companies like Walmart, Kroger, Target, Amazon, or Home Depot, you’ve likely encountered a wide range of deduction types—from shortages and price discrepancies to compliance issues. These deductions can quickly pile up and leave you scrambling to figure out how to resolve them.

In this guide, we’ll highlight the most common retail deduction types used by these major retailers and provide steps on how to manage and dispute them. Whether you’re looking to prevent future losses or streamline your current process, the insights ahead will help you take control and protect your bottom line.

 Common Deductions from Major Retailers

 Walmart:
As one of the largest global retailers, Walmart serves millions of customers daily through its extensive network of stores and e-commerce platforms. The company is known for its commitment to low prices and efficiency, relying on a highly automated supply chain to manage inventory and streamline operations.

How Walmart Handles Deductions:

Walmart employs a comprehensive system of over 100 deduction codes, each tied to specific reasons for deductions. Suppliers can manage and dispute these deductions through Walmart’s Accounts Payable Disputes Portal (APDP), integrated with Retail Link. 

Common Deductions:

Code 22: Goods Billed Not Shipped
Applied when Walmart receives fewer items than invoiced (e.g., invoiced for 12 cases but only 10 arrived).

Code 24: Carton Shortage/Freight Bill Signed Short
Triggered when Walmart's distribution center signs for fewer items than were shipped, often due to transit errors.

Code 25: No Merchandise Received for Invoice
Occurs when Walmart claims they didn't receive products for an invoice, typically because the invoice was sent before the shipment arrived.

Code 11: Price Difference Between PO & Invoice
This happens when the cost of items on the invoice doesn’t match what's on the purchase order.
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