Walmart suppliers who want to understand:
What a post audit claim is and how it differs from a standard deduction
What are the most common types of Walmart post audit claims, and what causes them
How to find backup documentation for each claim type
How to dispute post audit claims correctly and with the right contact
A post-audit claim is a claim Walmart makes after the initial audit of invoices and payments. It arises when discrepancies are identified between the amounts invoiced by suppliers and the amounts paid by Walmart. Unlike standard invoice deductions that are flagged at the time of payment, post-audit claims surface after the fact, sometimes long after the original transaction occurred.
This is what makes them particularly costly for suppliers. The further removed a claim is from the original transaction, the harder it is to gather documentation, recall details, and build a case for dispute. Walmart acknowledges this directly in its own guidance: it is always easier to manage issues as close to the transaction as possible, before they reach the post audit stage.
Post audit claims are separate from the standard accounts payable deduction process. Understanding how Walmart's AR and AP functions connect is the starting point for understanding why these claims exist.
Walmart's Accounts Receivable function creates invoices for monies owed to Walmart. The collection method for many of these invoices runs through Accounts Payable netting, where mutual obligations between Walmart and a supplier are offset against each other to produce a single net payment.
Here is a simple example of how AP netting works:
Walmart owes a supplier $10,000 for a product received
The supplier owes Walmart $3,000 for returned goods
The net payable amount is $7,000, and Walmart issues a single payment for that amount
Post audit claims feed directly into this netting process. When Walmart identifies a past discrepancy, it generates an AR invoice and nets it against what it owes the supplier, reducing the supplier's next payment without a separate transaction.
|
Post Audit Claim Type |
Primary Trigger |
|
POS and Sales Rebates |
Missed sales, cancelled coops, uncaptured PUT or SFS units |
|
Price Protection |
Cost decreases not passed through or inventory not covered |
|
Pricing |
The invoice cost is higher than the offered, or the POs have not been adjusted |
|
Markdowns |
Missing coop, incorrect funding rate, or items deleted from the modular |
|
Excessive Defective |
Defective returns exceed the allowance negotiated |
|
Excessive Swell and Defective |
Defectives exceed vendor agreement expectations |
|
Allowance |
Allowance missing from PO, wrong percentage, or miscoded in EDI |
|
Routing Compliance |
Incorrect routing, BOL errors, or weight and cube mismatches |
|
Lost Profit and Sales |
Profit loss during a recall or a low in-stock event |
|
Sam's Club ISB Tile Fee |
Missed tile fees for Sam's Club |
|
RX and Pharmacy |
Higher cost invoicing, incorrect effective dates, or missing item numbers |
POS and Sales Rebates claims occur when not all sales, dates, or items were captured in the original collection, when coops or deals were cancelled, and payment was not received, or when collection was missed for Pick Up Today and Ship from Store orders where no store coop was written.
A key detail many suppliers miss: Pick Up Today and Ship from Store units are eligible for rebate promotions if no store coop is collected for the same promotion. Failing to account for this is one of the most common triggers for this claim type.
Solutions and best practices:
Check coops regularly for accurate dates and items
Use Deals instead of coops to collect where possible
Account for Pick Up Today and Ship from Store units in rebate calculations
Price Protection claims occur when a cost decrease is announced, but Walmart does not receive the corresponding credit across all applicable inventory. Common triggers include coop errors, cost discrepancies, inventory miscalculations, misaligned effective dates, and data management issues.
Solutions and best practices:
Include on-order inventory in price protection coops
Wait two weeks before running price protection coops to allow settled data to capture correctly
Align clearly on effective dates and expectations for on-order inventory before a cost change goes live
Pricing claims occur when the invoice cost is higher than what was offered to Walmart, when a cost change was not implemented in time, or when purchase orders that were already written were not adjusted to reflect the lower cost.
Solutions and best practices:
Adjust any POs already issued to reflect the lower cost before shipment
Ensure cost changes are implemented with clear and agreed-upon effective dates
Invoicing at the correct cost and resolving any discrepancies before payment is due
Markdown claims most commonly occur when no coop was created to collect funding, when units were missed, when dates were misaligned, when the funding rate was incorrect, or when markdowns were applied to items that were not part of the modular.
Solutions and best practices:
Expect markdowns when items are deleted from the modular, and plan funding accordingly
Communicate the funding percentage clearly before any modular change takes effect
Capture inventory at the time of markdown, and do not include return center inventory
These two claim types are related but distinct. Excessive Defective applies when Walmart reviews the total defective items returned by customers and finds that the amount exceeds the defective allowance the supplier negotiated. Excessive Swell and Defective applies when a supplier has more defectives than expected based on what is in the vendor agreement.
Solutions and best practices:
Ensure merchandise meets quality standards before shipment
Confirm that the defective allowance in the vendor agreement is sufficient to cover realistic return volumes
Have regular discussions with the Walmart merchant about swell and defective allowance levels
Allowance claims occur when an allowance is missing from the purchase order, the percentage is wrong, the allowance is miscoded in EDI, or it is combined with another allowance incorrectly. Missing or incorrect payment terms on the PO or invoice can also trigger this claim type.
Solutions and best practices:
Ensure the vendor agreement is updated with the correct allowance percentage
Verify that EDI codes match exactly what is in the vendor agreement
Review all POs for allowance accuracy before shipment
Routing Compliance claims are triggered by a range of shipping and documentation errors, including inaccurate item setup, failure to follow bill of lading requirements, not combining same-day LTL shipments on one BOL, and cases where the ordered weight or cube does not match the routed weight or cube.
Solutions and best practices:
Follow all instructions in the Walmart Shipping and Routing Guide
Ensure items are set up accurately with the correct ship point information before requesting routing
Update loads with any changes or cancellations in the Transportation Service Portal promptly
RX and Pharmacy claims cover a wide range of triggers specific to pharmacy suppliers, including invoicing at a higher cost than what was offered, incorrect effective dates, cost updates not implemented, POs not adjusted to the lower cost, and item numbers missing from invoices.
Solutions and best practices:
Update costs with correct effective dates and send a 90-day notice of any cost increase or product removal
Adjust any POs already issued to reflect the lower cost
Review and track coop approvals within 90 days, and ensure proper approvers are in place before approving
Document all correspondence by email for audit purposes
Post audit claims are harder to fight than standard deductions because time is working against you. The further removed a claim is from the original transaction, the harder it becomes to pull documentation, match records, and build a credible dispute.
The suppliers who manage post audits most effectively are the ones who stay close to every transaction, reconcile regularly, and have a clear process for responding the moment a claim lands.
That is where iNymbus comes in. iNymbus automates the deduction and dispute process end to end, helping suppliers identify claim types, gather backup documentation, and file disputes through the right channels before the window closes.
Ready to get ahead of Walmart post audit claims? Schedule a free demo with the iNymbus team today.