Code 91: Mdse. Destroyed (Damaged/Defective)

Overview

Code 91 deductions apply to damaged or defective merchandise that Walmart could not return and therefore destroyed. The ability to destroy unreturnable merchandise is determined by the terms negotiated in the supplier agreement.

These deductions are typically associated with merchandise that fails quality expectations, cannot be resold, and cannot be returned to the supplier under the agreed return terms.

Code 91 deductions occur when damaged or defective merchandise is destroyed according to supplier agreement terms.

Common Root Causes

• Product packaging fails during transportation.
• Merchandise cannot withstand temperature changes, vibration, impact, or handling conditions.
• Products arrive damaged or defective and cannot be returned.
• Supplier agreement terms allow destruction instead of return.
• Merchandise is incorrectly classified as damaged or defective.

How to Prevent Valid Code 91 Deductions

• Use packaging designed to withstand transportation and warehouse handling.
• Ensure products can withstand temperature changes and physical stress during shipping.
• Review supplier agreement terms related to defective merchandise.
• Consider negotiating higher defective merchandise allowances to better manage financial impact.
• Implement quality control processes to reduce damaged or defective products.

Can It Be Disputed?

Yes. Code 91 deductions can be disputed if the supplier can prove that the merchandise should not have been destroyed because the claim violated the supplier agreement, or if the merchandise should not have been classified as damaged or defective.

Code 91 disputes should generally include any related fees from the same claim, such as handling or freight charges associated with the damaged merchandise.

How to Dispute Invalid Code 91 Deductions

The dispute process depends on the Walmart location that issued the return claim. Suppliers should include all related claim lines together when submitting disputes, including codes 91, 60, 44, and 120 when applicable.

Returns From Location 9462

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

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

Other Returns

If the return location is not 9462, suppliers should submit the dispute through the Accounts Payable Dispute Portal (APDP). All related claim lines should be included together.

If an APDP dispute is rejected, suppliers may escalate the issue to their buyer, especially when the deduction violates supplier agreement terms.

Supporting Documentation

• Proof that the merchandise should not have been considered damaged or defective.
• Supplier agreement showing merchandise should have been returned instead of destroyed.
• APIS backup documentation and claim details.
• Defective Merchandise, Handling Fee, and RTV Freight Claim Form.
• Quality control or inspection records supporting the dispute.

Conclusion

Code 91 deductions are associated with damaged or defective merchandise that Walmart destroys instead of returning. Suppliers can reduce these deductions through stronger packaging, product quality controls, and reviewing supplier agreement terms. When a destruction claim is invalid, suppliers can dispute the deduction by providing evidence that the merchandise was not defective or should have been returned according to the agreement.