Finance overview for DSVs

Finance overview for DSVs

Overview Background on Payment for Cost of Goods Sold (COGS) Deductions overview Retail Link, Invoice and Remittance file Potential payment variances Inquiry process for chargeback details Contact info 2

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 12:00 A.M. Friday Accounts are not aged 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 DSV for cost of goods P.O.-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 payments are identified as 01-applicable store number For example: Delivery to Carrollton, GA DC = store #5926. Payment for the inbound P.O. would appear as 01-5926 Manual adjustments made by Walmart.com are identified as 46-353 3

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 25 th 25 th Customer Service Adjustment (CSA) 05-900 Quarterly, one month in arrears based on reason code for the adjustment Shipping Carrier Claims (05-9000) - details on Slide 5 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) 4

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 DSV as well as a summary notification at the end of each month. Deduction amount is listed below: FedEx: COG or if COG > $100 then maximum allowed $100 All other carriers: COG plus shipping cost charged to customer The DSV, as Shipper of Record with carrier, will then submit a claim to the carrier. Once the claim is processed, the carrier will either approve or decline the claim. Approved: Funds sent directly from carrier to DSV Declined: Declination letter sent to DSV explaining reason for declination. DSV 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. Walmart will handle LTL carrier claims directly USPS does not allow claims Contact dsvmail@wal-mart.com for inquiries. 5

Retail Link / 1 Select Check Index Screen from the drop-down menu. 6

Retail Link / 2 Select the check you want to view. 7

Retail Link / 3 The check details will be presented on a different screen. Detailed Information for Check # 3155055 DC Numb er Type of PO Store Microfilm Invoice Invoice payment/charge Number Invoice Number Number Division Number Date Amount Date Paid Discount Amount Paid Automatic Payment 0 218915649 0 3539 1 50 2/22/2011 $368,793.68 02/23/2011 $0.00 $368,793.68 Manual payment 0 700007010511010 0 3539 46 60 2/22/2011 $4,643.22 02/23/2011 $0.00 $4,643.22 RTV 0 700007010511012 0 9000 5 70105 2/18/2011 ($248,228.90) 02/23/2011 $0.00 ($248,228.90) CSA 0 700007010511015 0 9000 5 65637 2/18/2011 ($3,000.00) 02/23/2011 $0.00 ($3,000.00) Carrier claims 0 700007010511017 0 9000 5 80250 2/18/2011 ($1,015.00) 02/23/2011 $0.00 ($1,015.00) Shipping Upgrades 0 700007010511100 0 9519 46 80300 2/18/2011 ($1,450.00) 02/23/2011 $0.00 ($1,450.00) COOP 0 700007010511300 0 9904 46 90000 2/18/2011 ($10,000.00) 02/23/2011 $0.00 ($10,000.00) Vendor Compliance 0 700007010511140 0 8820 46 90115 2/18/2011 ($1,200.00) 02/23/2011 $0.00 ($1,200.00) 8

Sample of system-generated invoice 9

Sample of DSV AP Remittance file 10

Potential payment variances Order-level variances Order Status Walmart.com only charges the customer, recognizes the sale and authorizes payment to the DSV 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 P.O. was canceled include: Backordered Discontinued Canceled Cost variances The DSV 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. 11

Inquiry process for chargeback details We moved our Vendor Management Support to our Corporate 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 7:00 a.m. 6:00 p.m. CT) You can find the E-Form in Retail Link by clicking on Site Map > Contact Center > Supplier Inbox Form (.xls). If you don t fill out an E-form, your request will not being processed by FSS. 12

Other contact info Receipt of checks Vendor Hotline (479) 273-4089 General questions and concerns vendormanagement@walmart.com DSV Carrier Claims inquiries dsvmail@wal-mart.com 13