Code 50: Advertising Allowance (AA)

Overview

Code 50 deductions occur when Walmart determines that an advertising allowance specified in the supplier agreement is missing from the invoice. Suppliers should verify all purchase order information and allowance terms before fulfilling an order.

For special purchase order deals, suppliers should maintain written correspondence with their sales representative and ensure purchase orders are reviewed before shipment.

Many invalid Code 50 deductions occur because the allowance was applied correctly but in the wrong location on the invoice.

Common Root Causes

One common cause of invalid Code 50 deductions is when the supplier agreement requires an allowance to be applied at the invoice level, but the EDI provider applies the same allowance at the line-item level. Although the correct dollar amount is deducted, Walmart interprets the allowance as missing.

• Purchase orders containing incorrect pricing or allowance information.
• Required allowances missing from the invoice.
• Shipping against an inaccurate purchase order without requesting corrections.
• Using incorrect EDI allowance codes.
• Calculating allowances on the net invoice amount instead of the gross amount.

How to Prevent Valid Code 50 Deductions

• Verify that every purchase order is accurate before shipping.
• Ensure invoices match the purchase order exactly.
• Confirm with your EDI provider that all supplier agreement allowances appear correctly on EDI 810 invoices.
• Review both the purchase order and invoice to ensure required allowances are included.
• Maintain written documentation for any special purchase order deals and ensure the buyer acknowledges them.

Can It Be Disputed?

Yes. Code 50 deductions can be disputed if you can demonstrate that the advertising allowance was already applied on the invoice. Showing that the correct allowance amount was withheld, even if it appears differently than expected, can often result in a successful dispute.

How to Dispute Invalid Code 50 Deductions

Allowance disputes can technically be submitted through the Accounts Payable Disputes Portal (APDP). However, Walmart has indicated that allowance deduction codes 50–59, 150, and 151 are generally unlikely to be approved through APDP.

In many cases, the preferred approach is to work directly with your buyer. Supporting documentation should be provided, and any reimbursement typically requires buyer approval.

Supporting Documentation

• Supplier agreement showing the negotiated advertising allowance.
• Purchase Order showing the expected allowance.
• EDI 810 invoice demonstrating that the allowance was applied.
• Documentation for any special pricing or promotional agreements approved by the buyer.

Conclusion

Code 50 deductions usually result from differences between supplier agreement allowances, purchase orders, and invoice data. Carefully reviewing purchase orders, validating EDI allowance mappings, and maintaining documentation for negotiated promotions can help prevent these deductions. When the allowance was applied correctly, supporting documentation and buyer involvement often provide the best opportunity for recovering invalid deductions.