Code 60: Handling Charge as Documented

Overview

Code 60 deductions represent handling charges associated with returns or defective merchandise claims. These deductions are typically filed in addition to the original return or defective merchandise claim, where the return claim covers the merchandise cost and Code 60 covers the cost of processing the returned or defective merchandise.

The specific handling charge terms are defined in the supplier agreement under the Returns section. In many cases, the standard handling charge is 10% of the merchandise cost. Suppliers should review the Warranty and Returns sections of their supplier agreement to understand their obligations.

Code 60 deductions are directly tied to return and defective merchandise claims, so reducing returns is the most effective way to reduce handling charges.

Common Root Causes

• Product returns caused by quality issues or defective merchandise.
• Supplier agreements that allow Walmart to charge handling fees on returns.
• Failure to negotiate reduced handling charge terms.
• Incorrect or invalid return claims that generate associated handling fees.
• Merchandise returned when supplier agreement terms do not permit returns.

How to Prevent Valid Code 60 Deductions

• Improve product quality and packaging processes to reduce returns and defective claims.
• Review and negotiate supplier agreement terms related to handling charges.
• Negotiate lower handling fee percentages when possible instead of accepting the standard 10% charge.
• Establish supplier agreement terms where handling charges are not applicable when appropriate.
• Monitor Walmart claims to identify recurring return and defect issues.

Can It Be Disputed?

Yes. Code 60 deductions can be disputed with your buyer if the supplier agreement states that handling charges should not be applied. If the supplier agreement permits handling charges, the better approach is usually to dispute the original return deduction if it was invalid.

Walmart generally expects Code 60 disputes to be submitted together with the related return deduction from the same claim, such as a Code 94 return deduction.

How to Dispute Invalid Code 60 Deductions

The dispute process depends on the source of the return claim.

Returns from Walmart Location 9462

When the return deduction originates from Walmart location 9462, it indicates a Returns Center claim. These claims require a dedicated dispute process.

• Download and review backup details and supporting documentation from APIS.
• Complete the Defective Merchandise, Handling Fee, and RTV Freight Claim Form with the claim number, invoice date, disputed amount, and dispute reason.
• Attach backup details and supporting documentation for each claim.
• Submit the claim through Partner Support under Returns > Returns Chargebacks > Defective Merchandise, Handling, and RTV Freight Expense Claims.

Other Returns

For return deductions originating from locations other than 9462, suppliers should submit disputes through the Accounts Payable Dispute Portal (APDP). All related claim lines should be included together when disputing, including deductions such as Code 94, Code 60, Code 44, and Code 120.

If an APDP dispute is rejected, suppliers can escalate the issue to their buyer, especially when the Code 60 deduction conflicts with supplier agreement terms.

Supporting Documentation

• Proof that the return generating the handling charge was invalid.
• Supplier agreement showing that merchandise should not be returned to the supplier, if disputing return eligibility.
• Return claim documentation and backup details.
• Defective Merchandise, Handling Fee, and RTV Freight Claim Form when required.
• Documentation supporting any negotiated handling charge terms.

Conclusion

Code 60 deductions are handling fees associated with Walmart returns and defective merchandise claims. Reducing product defects, improving packaging, and negotiating favorable supplier agreement terms are the best ways to minimize these charges. When handling fees are applied incorrectly, suppliers should dispute the related return claim and provide documentation proving the deduction is invalid.