Walmart code 59: Defective Merchandise Allowance
Walmart code 59 is a defective merchandise allowance: a negotiated percentage Walmart deducts to cover defective returns instead of shipping the product back.
A defective allowance in the supplier agreement is applied against sales for the period, usually as a running percentage rather than against specific units.
Usually valid, and worth auditing rather than disputing. The recoverable cases are a rate applied above the agreement or an allowance taken alongside physical returns under code 94 for the same units.
Evidence that settles a 59 dispute
Most decisive first. A dispute filed without the first item on this list rarely survives review.
- 1 Supplier agreement showing the agreed defective allowance rate
- 2 Sales figures for the period the allowance was calculated on
- 3 Prior period deductions confirming the rate has been applied consistently
- 4 Return authorization records where units were also physically returned
How to stop code 59 recurring
A defective allowance is a contract term, so there is little to fix operationally. Watch instead for the double-count: an allowance and a physical return taken against the same merchandise.
Endless keeps the purchase order, the pack, the ASN, the bill of lading, and the invoice on one record, so the documents that settle a Walmart deduction are already connected when the claim posts. EndlessEDI builds carton-level 856s against scanned SSCC labels and validates the shipment before it goes out, which is what moves the number down: brands on Endless report a 90% drop in retailer EDI chargebacks.
- Where to dispute
- Most AP deductions surface and are disputed in the Accounts Payable Disputes Portal (APDP) inside Retail Link. OTIF fines are accounts receivable deductions and follow a separate path with a shorter window.
- Dispute window
- Reported windows vary by claim type: roughly 12 months from the invoice date for shortage deductions and up to two years for general invoice disputes, against a reported window closer to 30 days from invoicing for OTIF. Confirm the current deadline in APDP before you plan a recovery batch.
Related Walmart codes
Deduction programs and dispute windows change and vary by vendor agreement. Figures marked “reported” come from third-party supplier resources, not a retailer’s published fee schedule — confirm against your current routing guide and supplier agreement before you file. See every Walmart deduction code .
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