Code 80: Cash Discount

Overview

Code 80 claims are Accounts Receivable claims where Walmart believes the correct cash discount was not taken on an invoice and attempts to collect the remaining amount.

Cash discounts are typically determined according to the Payment Terms defined in the Supplier Agreement. In most cases, cash discounts are calculated based on the receipt of goods date rather than the invoice date unless the agreement specifies otherwise.

Understanding supplier payment terms is essential because cash discounts are usually calculated from receipt of goods, not invoice creation.

Common Root Causes

• Misunderstanding of payment terms and cash discount calculations.
• Late invoice transmission causing payment processing delays.
• Invoice matching failures requiring manual review.
• Incorrect payment terms entered on purchase orders or invoices.
• Invoice discrepancies involving shortages, damages, missing allowances, or pricing differences.

Invoice Transmission and Matching Issues

Invoices should be transmitted to Walmart promptly to ensure there is sufficient processing time before payment terms expire. Delayed invoice transmission can reduce the available time for matching and payment processing.

Failed invoice matching can also delay payments. Common causes include differences between invoices and purchase orders, shortages, damages, missing allowances, or pricing discrepancies.

How to Prevent Valid Code 80 Claims

Since valid Code 80 claims generally result from Walmart payment processing decisions, suppliers have limited ability to prevent them. However, accurate records and understanding agreement terms can help reduce disputes.

• Ensure accounts receivable teams understand Supplier Agreement payment terms.
• Verify payment terms are accurate on purchase orders and invoices.
• Transmit invoices to Walmart promptly.
• Ensure invoices match purchase orders and receiving information.
• Maintain documentation for all negotiated cash discount terms.

Can It Be Disputed?

Yes. Suppliers can dispute Code 80 claims if Walmart is requesting a cash discount amount greater than what is allowed under the Supplier Agreement or Co-op Agreement.

Disputes should be submitted through the HighRadius portal with documentation proving that the correct cash discount was already invoiced and applied.

How to Dispute Invalid Code 80 Claims

Review the payment terms for the applicable order and compare them against the cash discount taken. If the discount was correctly applied according to the agreement, submit supporting documentation through HighRadius.

Supporting Documentation

• Copy of the Supplier Agreement covering the order showing the correct cash discount terms.
• Copy of the Co-op Agreement covering the order showing the correct cash discount terms.
• Invoice records showing the correct discount was invoiced and applied.
• Payment documentation supporting the disputed claim.

Conclusion

Code 80 claims occur when Walmart believes the correct cash discount was not applied to an invoice. Suppliers can reduce confusion by maintaining accurate payment terms, ensuring invoice accuracy, and training accounts receivable teams on agreement requirements. When Walmart requests an incorrect discount amount, supporting agreement documentation can help resolve the claim through HighRadius.