Code 24: Carton Shortage/Freight Bill Signed Short

Overview

Code 24 deductions occur when a Walmart facility signs the Bill of Lading as short because fewer cartons were received than the shipment was expected to contain. These deductions are issued when the supplier invoices for more merchandise than the facility reports receiving or more than the quantity shown on the purchase order.

Code 24 deductions are based on shortages documented when the freight is received.

How to Prevent Valid Code 24 Deductions

Item Setup and Invoicing

• Submit only one invoice per purchase order whenever possible.
• Confirm item setup information before shipping.
• Verify vendor pack quantities.
• Verify 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 the units on the purchase order.
• If you disagree with the ordered quantity, do not short ship. 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

• Ensure the driver records the correct case count on the Bill of Lading.
• Avoid marking Bills of Lading as Shipper Load and Count (SLC) unless appropriate, as SLC makes collect shortage disputes significantly more difficult.
• Do not master pack shipments.
• Clearly identify the purchase order number and facility number on shipping labels.
• Ensure labels are visible, undamaged, and easy to read.
• Use color coding or product imagery to distinguish products.
• Use slip sheets between purchase orders when palletizing freight.
• Clearly separate multiple purchase orders within a shipment.
• Avoid co-mingling inventory from different purchase orders whenever possible.

Can It Be Disputed?

Yes. Suppliers can dispute Code 24 deductions through the Accounts Payable Disputes Portal (APDP) in Retail Link by providing shipping documentation demonstrating that the purchase order was picked up and delivered in full. Walmart generally approves these disputes only when the shipment was counted by the driver and signed for before leaving the supplier's facility.

Supporting Documentation

• For collect shipments: A signed Bill of Lading showing the order was picked up in full. The Bill of Lading must include the driver's signature and clearly display the purchase order number.
• For prepaid shipments: A signed Proof of Delivery showing the order was received in full, along with a drop trailer stamp confirming the load was delivered to the Walmart distribution center. If the dispute is denied, Walmart should provide a shortage stamp that can be used when filing a carrier claim. The purchase order number should be clearly displayed on all documents.
• EDI 810 invoice showing the quantity shipped.

Conclusion

Code 24 deductions result from shortages documented when freight is received. Maintaining accurate invoices, proper Bills of Lading, clear shipment labeling, and complete shipping documentation can significantly reduce these deductions. When a deduction is invalid, suppliers should provide complete shipping records through APDP to demonstrate that the shipment was picked up and delivered in full.