Code 43: Merchandise S/B Prepaid to Consolidator

Overview

Code 43 deductions are freight chargebacks that are typically issued following a post-audit or through Walmart Accounts Receivable. These deductions represent freight costs that Walmart believes it incurred because shipments that should have been sent prepaid to a consolidator were shipped using different freight terms.

A single Code 43 chargeback commonly includes multiple shipments covering a specific period rather than a single purchase order.

Code 43 deductions are usually based on freight terms that do not match the supplier agreement.

How to Prevent Valid Code 43 Deductions

• Always ship orders according to the freight terms defined in your supplier agreement.
• If shipments are required to be prepaid, do not request a collect pickup.

Can It Be Disputed?

Yes, although Code 43 deductions can be difficult to recover because they are typically generated through post-audits or Walmart Accounts Receivable.

• If the deduction results from a post-audit, dispute it directly with the auditor when you receive the audit notification or submit a backup request through the GBS portal.
• If the deduction is issued through Walmart Accounts Receivable, supporting documentation is generally available in the High Radius portal, where you can also submit a dispute.

Supporting Documentation

• Shipping documents demonstrating that all affected shipments were transported according to the supplier agreement.
• Supplier agreement showing the agreed-upon freight and shipping terms.

Conclusion

Code 43 deductions are generally related to freight terms rather than product shortages or invoice discrepancies. Following the shipping requirements outlined in your supplier agreement and maintaining complete shipping documentation can help prevent these chargebacks and strengthen disputes when deductions are issued incorrectly.