Code 93: Mdse. Return (Damaged Merchandise)

Overview

Code 93 deductions occur when merchandise is returned because damage prevents the products from being sold. Supplier responsibility for damaged merchandise returns is determined by the terms outlined in the supplier agreement.

These deductions are typically associated with products that arrive damaged, become damaged during handling, or cannot be sold due to defects.

Code 93 deductions apply when damaged merchandise is returned and the supplier is responsible under the agreed return terms.

Common Root Causes

• Product packaging fails during transportation or warehouse handling.
• Products cannot withstand temperature changes, vibration, drops, or other shipping conditions.
• Merchandise arrives damaged and cannot be sold.
• Supplier agreement terms make the supplier responsible for damaged merchandise returns.
• Defective allowance terms are exceeded or incorrectly applied.

How to Prevent Valid Code 93 Deductions

• Ensure product packaging can withstand transportation and warehouse handling conditions.
• Verify products can tolerate temperature changes and physical stress during shipping.
• Improve product quality controls to reduce defective merchandise.
• Review supplier agreement terms related to damaged merchandise liability.
• Consider negotiating higher defective merchandise allowances to better plan cash flow.

Can It Be Disputed?

Yes. Code 93 deductions can be disputed if the supplier can prove that the merchandise should not have been classified as damaged or defective, or that the supplier should not be responsible for the return based on the agreed defective allowance terms.

How to Dispute Invalid Code 93 Deductions

The dispute process depends on where the return claim originated. Walmart expects Code 93 disputes to include any related fees from the same claim, including codes 44, 60, and 120 when applicable.

Returns From Location 9462

When the return deduction is issued 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 details and documentation for each 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 when disputing.

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

Supporting Documentation

• Supplier agreement showing the agreed defective merchandise allowance.
• Documentation comparing total defective return costs against the defective allowance already paid.
• Supplier agreement showing defective returns are not the supplier's responsibility.
• Supplier agreement showing defective goods must be returned to the supplier and proof that goods were never received.
• Pricing documentation showing the actual item cost is lower than the amount deducted per item.
• APIS backup documentation and return claim details.

Conclusion

Code 93 deductions result from merchandise returns caused by damage or defects that prevent products from being sold. Suppliers can reduce these claims through stronger packaging, quality controls, and clear understanding of supplier agreement responsibilities. When a damaged merchandise return deduction is incorrect, suppliers can dispute it by providing documentation that proves the merchandise classification or liability was incorrect.