Code 22: Goods Billed Not Shipped

Overview

Code 22 deductions occur when the quantity invoiced for an item does not match the quantity that Walmart reports receiving. In many cases, the shipment may have been signed for upon arrival, but the receiving facility later records fewer units than were invoiced.

Code 22 deductions are one of the most commonly disputed Walmart shortage claims.

Common Root Causes

• Shipping fewer items than ordered while invoicing the full quantity.
• Shipping extra units of one product to compensate for shortages of another item.
• Splitting a purchase order into multiple deliveries, resulting in delayed receipts.
• Differences between shipped quantities and Walmart's receiving records.

How to Prevent Valid Code 22 Deductions

Item Setup and Invoicing

• Submit only one invoice per purchase order whenever possible.
• Verify item setup information before shipping.
• Confirm vendor pack quantities.
• Confirm warehouse pack quantities.
• Transmit invoices using Walmart item numbers.
• Ensure invoices exactly match the purchase order without unauthorized adjustments.
• Match invoice units of measure (UoM) with those on the purchase order.
• If you disagree with the ordered quantity, do not short ship. Instead, coordinate with the Replenishment Manager or buyer to obtain an updated purchase order.
• Verify that fulfillment information is correctly transmitted through your EDI system.

Packaging and Labeling

• Do not master pack shipments.
• Clearly identify the purchase order number and facility number on shipping labels.
• Ensure labels are clearly visible and undamaged.
• Use color coding or product imagery to distinguish products.
• Use slip sheets between purchase orders when palletizing freight.
• Clearly separate different purchase orders within shipments.
• Avoid co-mingling inventory from multiple purchase orders whenever possible.

Can It Be Disputed?

Yes. Code 22 deductions are commonly overturned when suppliers can demonstrate that all merchandise was shipped in full. Disputes are submitted through the Accounts Payable Disputes Portal (APDP) in Retail Link.

Supporting Documentation

• Freight bill showing that the number of cases shipped matches the number of cases invoiced.
• For collect shipments, provide the signed Bill of Lading (BOL) with the purchase order number clearly displayed.
• For prepaid shipments, provide the signed Proof of Delivery (POD), including a signed gate stamp (dropship trailer stamp) when applicable, with the purchase order number clearly displayed.
• EDI 810 invoice showing the correct quantities invoiced.
• EDI 850 purchase order showing the ordered quantities (optional).
• A Scintilla (formerly Luminate) inventory report showing the quantity Walmart's system recorded as received, especially if an initial dispute is denied.

Conclusion

Code 22 deductions are among the most common Walmart shortage deductions and are often recoverable when suppliers maintain complete shipping documentation. Accurate invoicing, proper labeling, and thorough shipping records can significantly reduce these claims. If a dispute is denied, inventory data from Scintilla can provide additional evidence for a successful resubmission.