Code 120

How to Fix Walmart Deduction Code 120: WMTD Claims (MDSE Return – Walmart Discretion Program)

Code 120s are issued when a supplier has elected not to have defective merchandise returned to them, leaving the handling of such items to Walmart's discretion, as per their supplier agreement. These claims often occur in bulk for multiple defective items. A common underlying cause for defective returns is damage during transit, which becomes appar...

Root Causes of Code 120
  • •Code 120s are issued when a supplier has elected not to have defective merchandise returned to them, leaving the handling of such items to Walmart's discretion, as per their supplier agreement
  • •These claims often occur in bulk for multiple defective items
  • •A common underlying cause for defective returns is damage during transit, which becomes apparent only when items are unboxed in-store and subsequently damaged out
Required Documents for Dispute
  • Supplier agreement showing the agreed-upon defective allowance
  • Documentation showing total cost of defective returns to date vs the amount paid in defective allowance
  • Pricing info showing the actual cost of the item as less than the cost deducted per item on the claim
Step-by-Step Dispute Process
  1. 11. Identify if the Code 120 is invalid based on two scenarios: a) The supplier agreement includes a defective allowance, and the cost of returns has not exceeded this allowance (excessive defectives). b) There is a pricing discrepancy where the amount deducted per item is higher than the actual cost of the item. 2. For scenario (a), gather the supplier agreement showing the defective allowance and documentation detailing the total cost of defective returns to date versus the amount paid in the defective allowance. 3. For scenario (b), obtain pricing information that demonstrates the actual cost of the item is less than the cost deducted per item on the claim. 4. If a pricing discrepancy is the basis for the dispute, escalate the issue to the buyer for resolution. 5. Submit the gathered supporting documentation through the Accounts Payable Dispute Portal (APDP) to dispute the invalid portion of the deduction.
How to Prevent Code 120 in the Future
  • Review POs before shipping to catch discrepancies early
  • Maintain detailed records of all buyer communications
  • Implement automated PO validation
  • Keep dispute logs to identify recurring issues
Frequently Asked Questions

How long does it take Walmart to process a Code 120 dispute?

Walmart typically reviews Code 120 disputes within 30-45 days through the Accounts Payable Disputes Portal. If denied, escalate to your buyer immediately with supporting documentation.

Can I prevent Code 120 deductions before they happen?

Yes. Implement pre-shipment PO validation, maintain detailed records of buyer communications, and work with your EDI provider to ensure correct processing. Keep a dispute log to identify recurring issues.

What's the success rate for Code 120 disputes?

Code 120 disputes have varying success rates (40-70%) depending on documentation quality. Disputes succeed when you provide complete proof that the deduction was invalid.

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