Code 13: Substitution Overcharge

Overview

Code 13 deductions occur when a supplier invoices one item number but Walmart receives a different item. When the invoiced item has a higher cost than the merchandise actually received, Walmart files a Code 13 deduction for the price difference.

Code 13 deductions are typically caused by invoicing mistakes, product substitutions, or receiving errors.

Common Root Causes

Invoice Issues

• Ensure invoice fields are completed correctly.
• Use the correct Walmart item numbers instead of incorrect item numbers or UPC fields.
• Avoid generating the EDI 810 invoice before the order has been completely fulfilled.

Substitution or Shipping Errors

• Do not substitute products unless the purchase order has been updated to reflect the actual items being shipped.
• Avoid rushed shipments that may result in unauthorized item substitutions.

Receiving and Handling Errors

• Warehouse receivers may accidentally apply receipts to the wrong purchase order.
• Poor packaging or unclear labeling can cause products to be misidentified during receiving.
• Use clear labels and communication to reduce receiving mistakes.

How to Prevent Valid Code 13 Deductions

Item Setup and Invoicing

• Verify item setup information before shipping.
• Transmit invoices using Walmart item numbers rather than internal item numbers or UPCs.
• Ensure invoices match the purchase order without unauthorized adjustments.
• Confirm fulfillment information is flowing correctly through your EDI system.

Packaging and Labeling

• Display the purchase order number and facility number clearly on shipping labels.
• Ensure labels are visible, undamaged, and easy to read.
• Use color coding or product imagery to distinguish similar products.
• Use slip sheets when palletizing multiple purchase orders.
• Use color coding or visual identifiers to separate different customer orders.
• Avoid mixing inventory for multiple purchase orders whenever possible.
• If multiple purchase orders must be included in a shipment, clearly separate them according to Walmart requirements.

Can It Be Disputed?

Code 13 deductions are among the most difficult Walmart deductions to dispute successfully. Although suppliers can technically submit disputes through the Accounts Payable Disputes Portal (APDP) in Retail Link, successful paybacks are uncommon.

Walmart generally recommends against contacting your buyer regarding Code 13 deductions.

Supporting Documentation

• Bill of Lading showing the correct items shipped, preferably with product or UPC-level details.
• EDI 810 invoice showing the product that was invoiced.
• Proof of Delivery confirming the items received.

Conclusion

Code 13 deductions typically result from invoicing errors, unauthorized substitutions, or warehouse receiving mistakes. Maintaining accurate item data, using clear packaging and labeling, and ensuring invoices match purchase orders can significantly reduce substitution overcharge claims. If a deduction is invalid, suppliers should collect all supporting documentation before submitting an APDP dispute.