Code 94s are used when a customer returns an item or it is considered defective merchandise.
Code 94s are valid if the supplier agreement specifies that the supplier is responsible for the cost of defective returns. If the supplier agreement includes a defective allowance then it must also state that the supplier is responsible for the cost of returns above and beyond the defective allowance %. If the supplier agreement specifies that defective goods must be returned to the supplier, then those goods must be returned in order for a code 94 to be valid.
If your supplier agreement is written in this manner, then preventing valid code 94s would require renegotiating the supplier agreement to remove the obligation to pay for defective returns that exceed the given allowance %. This negotiation would typically necessitate offering Walmart a higher defective allowance %.
Also on your supplier agreement, you will choose what you would like Walmart to do with your returned/defective merchandise. You would either choose to have the merchandise returned to you or destroyed/donated option.
Code 94s would be considered invalid and disputable if they fall under one of the following scenarios:
4. There is a pricing discrepancy between the amount deducted for a certain quantity of an item and the actual cost of the item (ex: Walmart deducted $8/item for a return when the actual cost is $5/item). In these scenarios, you should only dispute the difference in pricing. These disputes will typically have to be escalated to the buyer since it’s a pricing issue. It is also important to note that for customer returns, Walmart will typically deduct the retail price of the item, not the cost, to cover their lost revenue.
If any of the above is the case, then it is considered a Virtual Claim. If you receive a Virtual Claim that does not meet these criteria, then you should dispute the claim on the Direct Commerce dispute portal. (Virtual Claims will be listed with the division of 13 and the store number of 9070.)
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