Code 57: Quantity Discounts

Overview

Code 57 deductions occur when Walmart determines that a quantity discount listed in the supplier agreement is missing from the invoice. Quantity discounts are extended for assembly stock, which refers to products that pass through a warehouse before being shipped to stores.

Suppliers should verify all purchase order information and discount terms before fulfilling orders. Sales representatives should provide written documentation for any special purchase order deals, and suppliers should review purchase orders before accepting them.

Many invalid Code 57 deductions occur because the correct discount amount was applied but entered in a different invoice location than expected.

Common Root Causes

A common cause of invalid Code 57 deductions is when the supplier agreement requires the quantity discount to be applied off-invoice, but the EDI provider applies it at the line-item level instead. Although the correct dollar amount is withheld, Walmart may interpret the allowance as missing.

• Purchase orders containing incorrect quantity discount or allowance information.
• Allowances listed on the purchase order but missing from the invoice.
• Shipping against inaccurate purchase orders, which may be viewed as confirmation of incorrect PO details.
• Using incorrect EDI allowance codes.
• Calculating allowances using the net invoice amount instead of the gross amount.

How to Prevent Valid Code 57 Deductions

• Verify all purchase orders are accurate before shipping products.
• Ensure invoices match purchase order details exactly, including quantity discounts.
• Confirm with your EDI team or provider that supplier agreement and purchase order allowances are correctly included on EDI 810 invoices.
• Review supplier agreements to ensure specified discounts appear on both purchase orders and invoices.
• Maintain written documentation for special purchase order deals and ensure buyer acknowledgment.

Can It Be Disputed?

Yes. Walmart allows disputes for invalid Code 57 deductions through the Accounts Payable Dispute Portal (APDP) if suppliers can prove that the quantity discount was already applied on the invoice. If the discount was not applied, suppliers must generally work with their buyer for assistance with reimbursement.

While APDP accepts Code 57 disputes, these cases can be difficult to win. When the correct discount amount was already withheld but applied differently than expected, providing documentation to the buyer can often help overturn the deduction.

How to Dispute Invalid Code 57 Deductions

Quantity discount disputes can technically be submitted through APDP. However, Walmart has indicated that allowance deduction codes 50–59, 150, and 151 are unlikely to be approved through APDP.

The alternative approach is to submit the dispute directly to your buyer. These deductions require supporting documentation and buyer approval before reimbursement can be processed.

Supporting Documentation

• Supplier agreement showing the approved quantity discount terms.
• Purchase Order showing the expected discount allowance.
• EDI 810 invoice demonstrating that the discount was applied.
• Written correspondence for special purchase order deals approved by the buyer.
• Documentation supporting assembly stock shipments and qualifying quantities.

Conclusion

Code 57 deductions usually occur because of differences between supplier agreements, purchase orders, EDI invoice configurations, and quantity discount calculations. Reviewing purchase order details, validating allowance mappings, and maintaining proper documentation can help prevent these deductions. When the discount was already applied correctly, supporting evidence and buyer communication provide the best opportunity for recovering invalid deductions.