Finance Overview
DSV Kickoff Meeting
Saving
people
money
so they
can live
better
Overview
• Today’s discussion will focus on Payables & Deductions
– Background on Payment for Cost of Goods Sold (COGS)
– Deductions overview
– Retail Link/Invoice/Remittance file
– Potential payment variances
– Inquiry process for charge back details
– Contacts
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Payment for Cost of Goods
• Every week, Walmart.com batches all received “Shipped Status” P.O. lines and
communicates the amount to be paid to Walmart Accounts Payable System
– Timeframe
• 12:01 A.M. Saturday through Midnight Friday
– We do not currently age accounts to applicable terms
– Payment is for cost of goods only
– “Ship Status” drives the charge to the customer’s credit card and authorization for
payment to vendor for cost of goods
– PO level documentation for these transactions is sent via the AP Remittance File
• All payments are made by Walmart systems and payments for other divisions will be on
the same check if applicable
– Walmart.com DSV automatic payments are identified as 01-3539
– Walmart.com bulk inbound payment are identified as 01 – applicable store number
• Example: Delivery to Carrollton, GA DC = store # 5926. Payment for the inbound
PO would appear as 01-5926
– Manual adjustments made by WM.com are identified as 46-3539
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Deductions
• Based on the terms noted in the DSV Legal Addendum, Walmart.com will reduce payments to
cover returns agreements, Customer Service Adjustments (CSAs), lost in transit carrier
claims, upgrades, etc.
– Returns (05-9000)
• Deduction based on product shipped to the Walmart Return Center
– Return to Vendor: Item Cost + 10% fee, deducted monthly
– Walmart Disposition: Item Cost without fee, deducted quarterly
• Return Center’s month is generally the 25th through the 25th
– Customer Service Adjustment (CSA) (05-9000)
• Quarterly, one month in arrears based on reason code for the adjustment
– Shipping Carrier Claims (05-9000) detail next slide
• Monthly, based on lost in transit information from the Walmart finance team located in
Bentonville, Arkansas
– Changed Ship Methods (46-9519)
• To recoup unplanned cost based on shipping via expedited carrier / service
– Coop Agreement (46-9904)
• Charges generated by Merchandising for price protection, discounts, etc.
– Vendor Compliance Charges (46-8820)
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Walmart.com Claims Recovery Process - Carrier Claims
• Carrier Claims occur when merchandise is either lost or damaged in transit and a
refund of merchandise cost is requested.
• DSV Carrier Claims notifications are sent directly to the vendor as well as a summary
notification at the end of each month.
– Deduction amount as follows:
• FedEx (COG or if COG > $100 then maximum allowed $100)
• All other carriers (COG plus shipping cost charged to customer)
• The vendor, as shipper of record with carrier, will then submit a claim to the carrier and
once processed, carrier will either approve or decline the claim
• Approved – Funds sent directly from carrier to vendor
• Declined – Declination letter sent to vendor explaining reason for declination.
Vendor then submits declination (no substitutes) to Walmart.com for
reimbursement of previously deducted COG.
• As the Shipper of Record, the DSV files their own Parcel carrier claim.
– BV will handle LTL carrier claims directly
– USPS does not allow claims
• Contact dsvmail@wal-mart.com for inquires
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Retail Link / 1
Select: Check Index Screen (from Drop down menu)
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Retail Link / 2
Select the check you want to view
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Retail Link / 3
The check details are presented on a separate screen
Detailed Information for Check # 3155055
Type of
payment/charge
Automatic Payment
Manual payment
RTV
CSA
Carrier claims
Shipping Upgrades
COOP
Vendor Compliance
DC
Numb
PO
Number Invoice Number er
Store
Number
Microfilm Invoice
Date
Division Number
Invoice
Amount
Date Paid Discount Amount Paid
218915649
0
3539
1
50 2/22/2011
$368,793.68 02/23/2011
$0.00
$368,793.68
0 700007010511010
0
3539
46
60 2/22/2011
$4,643.22 02/23/2011
$0.00
$4,643.22
0 700007010511012
0
9000
5
70105 2/18/2011 ($248,228.90) 02/23/2011
0 700007010511015
0
9000
5
65637 2/18/2011
($3,000.00) 02/23/2011
$0.00
($3,000.00)
0 700007010511017
0
9000
5
80250 2/18/2011
($1,015.00) 02/23/2011
$0.00
($1,015.00)
0 700007010511100
0
9519
46
80300 2/18/2011
($1,450.00) 02/23/2011
$0.00
($1,450.00)
0 700007010511300
0
9904
46
90000 2/18/2011
($10,000.00) 02/23/2011
$0.00
($10,000.00)
0 700007010511140
0
8820
46
90115 2/18/2011
($1,200.00) 02/23/2011
$0.00
($1,200.00)
0
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$0.00 ($248,228.90)
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Sample of System Generated Invoice
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Sample of a DSV AP Remittance File
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Potential Payment Variances
• Order level variances
– Order Status
• Walmart.com only charges the customer, recognizes the sale, and
authorizes payment to the vendor after receiving a shipped status (856)
• If the product physically ships, but a final status other than “shipped” (856)
is returned to Walmart.com, then the payment will not occur
• Final status order types indicating PO was canceled include:
– Backordered
– Discontinued
– Cancelled
• Cost variances
– The vendor’s payment is based on the cost in Walmart.com’s system at time
of order
• Merchants are responsible for updating costs and communicating any
errors that need to be manually corrected
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Inquiry process for charge back details
• We moved our Vendor Management Support to our Corp. Headquarters in
Arkansas. Details of charges will be provided by our U.S. Financial Shared
Services (FSS) Contact Center.
• In order to provide a more timely and effective customer service, the Walmart
Financial Shared Services Contact Center (FSSCC) requests that all suppliers
use an E-Form for all inquiries sent to:
– Email: WMFSSCONTACTCENTER@WAL-MART.COM
– Phone: (888) 499-6377 (M-F 7:00am – 6:00pm CT)
• You can find the E-Form in Retail Link by clicking on Site Map > Contact
Center > Supplier Inbox Form (.xls)
• No E-form
DSV Kickoff Meeting (Finance)
no request being processed by FSS
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Other contacts
• Receipt of checks
– Vendor Hotline 479-273-4089
• General questions and concerns
– vendormanagement@walmart.com
• DSV Carrier Claims Inquires
– DSVMail@wal-mart.com
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