How Walmart Suppliers Use EDI to CSV Conversion: Retail Link Compliance

The Walmart Supplier Reality: EDI Complexity Made Simple

You're a Walmart supplier. Every week, you receive EDI 850 purchase orders that look like encrypted gibberish. Walmart tells you that you need to maintain 90% OTIF (On-Time In-Full) or face a 3% COGS (Cost of Goods Sold) penalty. You're supposed to submit 856 ASNs via Retail Link before every shipment. And somehow, you need to track MABD dates, department numbers, GLN codes, and SSCC-18 barcodes.

The problem: Full EDI software costs $500-$5,000/month. Retail Link doesn't translate EDI files for you—it just provides them as downloads.

The solution: Convert EDI 850 purchase orders to CSV ($99/month or $3.90/file), process orders in your system, and submit ASNs back through Retail Link's web portal. This workflow keeps you 100% Walmart-compliant at 90% lower cost than full EDI integration.

Understanding Walmart's OTIF Requirement (Updated February 2024)

OTIF = On-Time In-Full. Walmart measures two things:

• On-Time: Did your shipment arrive by the MABD (Must Arrive By Date)?
• In-Full: Did you ship 100% of the quantity Walmart ordered?

Important change in February 2024: Walmart reduced the OTIF requirement from 95% to 90%. This gives suppliers more flexibility, but the 3% COGS penalty still applies below 90%.

Understanding MABD (Must Arrive By Date)

Every Walmart EDI 850 purchase order includes a MABD—the specific date by which your shipment must be received at the Walmart distribution center.

Critical MABD rules:

• Delivery window: You can deliver up to 3 days before the MABD (MABD-3 Days)
• Late is late: Even 1 day after MABD counts as a failed on-time delivery
• Early is also bad: Delivering more than 3 days early may be rejected at the dock
• Weekend/holiday rule: If MABD falls on a weekend or holiday when the DC is closed, check Retail Link for the adjusted MABD

Example:

• MABD: January 25, 2025
• Acceptable delivery window: January 22-25, 2025
• Shipment arrives January 26: OTIF failure
• Shipment arrives January 20: May be rejected (too early)

Step-by-Step: Processing Walmart EDI 850 Purchase Orders

Step 1: Download EDI 850 from Retail Link

Walmart sends EDI 850 purchase orders via Retail Link (Walmart's supplier portal):

1. Log in to Retail Link: retaillink.walmart.com
2. Navigate to: Orders → Order Management → View Purchase Orders
3. Select the PO you want to process
4. Click "Download EDI 850" (saves as .edi or .txt file)

Alternative: Some suppliers receive EDI 850 files via email from Walmart's EDI system.

Step 2: Convert EDI 850 to CSV with PlainEDI

Upload the Walmart 850 EDI file to PlainEDI. The conversion takes 30 seconds and produces a CSV with columns like:

• PO Number: Walmart's reference number (e.g., 4500123456789)
• PO Date: When Walmart created the order
• Ship-To DC: Walmart distribution center (e.g., DC 6012 - Bentonville, AR)
• Department Number: REF*DP segment (e.g., Dept 055 = Grocery)
• MABD Date: DTM*002 segment (Must Arrive By Date)
• Cancel Date: DTM*001 segment (if you can't fulfill by this date, Walmart cancels the PO)
• Item UPC/GTIN: Product barcode (PO1 segment)
• Vendor Item Number: Your SKU for the product
• Item Description: Product name
• Quantity Ordered: Number of cases (not eaches—Walmart orders in cases)
• Unit of Measure: CA (case), EA (each), PL (pallet)
• Unit Price: Cost per case
• Extended Price: Total line value
• FOB Terms: Prepaid (you ship) or Collect (Walmart arranges carrier)
• GLN Location Code: Global Location Number for the DC

Step 3: Critical Walmart-Specific Fields to Check

1. MABD vs Cancel Date:

• MABD (DTM*002): Must arrive by this date
• Cancel Date (DTM*001): If you can't ship to arrive by MABD, Walmart cancels the PO on this date
• Important: The cancel date is usually 1-2 days after MABD. If you miss MABD but ship before cancel date, the order is late (OTIF failure) but not canceled.

2. Department Number (REF*DP):

• Walmart uses department numbers for internal routing and accounting
• Common departments: 055 (Grocery), 001 (Health & Wellness), 007 (Apparel), 014 (Electronics)
• You'll need this number for your 856 ASN submission

3. Unit of Measure (Cases vs Eaches):

• Walmart almost always orders in cases (CA), not individual units
• If the CSV shows "Quantity: 100 CA", Walmart wants 100 cases, not 100 individual items
• Make sure you know your case pack size (e.g., 24 units per case)

Step 4: Enter Order in Your System

Import the CSV data into your:

• Inventory management system: Allocate inventory to the Walmart PO
• Accounting software (QuickBooks, Xero): Create sales order (see our QuickBooks/Xero guide)
• Warehouse system: Generate pick list with exact quantities

Important: Flag the MABD date in your system. Set a reminder for MABD-5 days to ensure you have time to prepare and ship.

Step-by-Step: Submitting Walmart 856 ASNs via Retail Link

Critical ASN Timing Rule

You must submit the 856 ASN before your shipment arrives at the Walmart DC. Walmart recommends submitting the ASN when you hand off to the carrier (same day as ship date).

Missing ASN penalty: Walmart chargeback Code 21 = $50-$100 per shipment (varies by DC)

Step 1: Prepare Shipment with GS1-128 Labels

Walmart requires GS1-128 (formerly UCC-128) barcode labels on all master cartons and pallets. These labels include:

• SSCC-18 (Serial Shipping Container Code): Unique 18-digit barcode for each carton/pallet
• UPC/GTIN: Product barcode
• Quantity in carton: Number of units per carton
• PO number: Walmart's purchase order number

How to generate SSCC-18 barcodes:

• Free online generators: BarTender, Zebra Designer
• GS1 Company Prefix (if you have one) + serial number
• Your 3PL/warehouse may provide GS1-128 labeling services

Step 2: Submit ASN via Retail Link (No EDI Transmission Needed)

Most small Walmart suppliers submit ASNs through Retail Link's web portal instead of EDI transmission:

1. Retail Link → Orders → ASN Creation
2. Select the PO you're shipping
3. Click "Create ASN"
4. Enter shipment details:
   • Ship Date: Date you handed off to carrier
   • Carrier: UPS, FedEx, YRC Freight, etc.
   • Tracking/PRO Number: Carrier's tracking reference
   • BOL Number: Bill of Lading (for freight shipments)
   • SCAC Code: 4-letter carrier code (e.g., UPGF for UPS Freight, FXFE for FedEx Freight)
   • Number of cartons: Total cartons in shipment
   • SSCC-18 barcodes: Enter each carton's SSCC number
   • Quantity per carton: Units in each carton
5. Verify quantities match your actual shipment exactly
6. Submit ASN

Important: Retail Link automatically generates the EDI 856 ASN from your web form. You don't need separate EDI transmission software.

Step 3: Track Delivery and OTIF Status

Monitor your shipment in Retail Link:

1. Retail Link → Orders → Track Shipments
2. View statuses:
   • ASN Submitted: Walmart received your 856
   • In Transit: Carrier has the shipment
   • Received at DC: Shipment arrived at Walmart dock
   • Checked In: Walmart counted units and validated against ASN
3. Check OTIF score: Retail Link → Performance → OTIF Scorecard

OTIF calculation: Walmart updates your OTIF score weekly. If you're trending below 90%, you'll see warnings in Retail Link's dashboard.

Step-by-Step: Submitting Walmart 810 Invoices

Invoice Submission Methods

Walmart accepts invoices via:

• Retail Link Invoice Entry: Web form (easiest for small suppliers)
• EDI 810 transmission: If you have EDI software
• Third-party invoicing systems: Some vendors use Walmart's approved third-party platforms

Using Retail Link Invoice Entry

1. Retail Link → Invoices → Create Invoice
2. Select the PO you shipped
3. Retail Link pre-fills data from your ASN:
   • PO number
   • Item numbers and descriptions
   • Quantities shipped (from your 856 ASN)
   • Unit prices (from original 850 PO)
4. Verify accuracy (make sure invoiced quantity = shipped quantity)
5. Add your invoice number
6. Submit invoice

Important: Invoice must match ASN exactly. If you shipped 100 cases but ASN said 100 cases but invoice says 95 cases, Walmart will flag the discrepancy and may delay payment.

Understanding Walmart Chargeback Codes

Walmart takes an average 5.8% in deductions from supplier invoices. Here are the most common chargeback codes:

Code 11: Price Difference

• What it is: Invoice price doesn't match PO price
• Cause: You changed pricing without updating Walmart's system, or typo in invoice
• How to avoid: Always use Retail Link's suggested invoice feature (auto-fills correct PO price)

Code 21: Missing or Invalid ASN

• What it is: Shipment arrived without ASN, or ASN had wrong data
• Penalty: $50-$100 per occurrence
• How to avoid: Submit ASN same day you ship, verify tracking numbers are correct

Code 22: Late Shipment

• What it is: Shipment arrived after MABD
• Penalty: $200-$500 per late shipment (varies by DC and product category)
• How to avoid: Ship early enough to arrive within MABD-3 to MABD window

Code 25: Short Shipment

• What it is: You shipped less than PO quantity
• Calculation: Missing quantity × unit cost
• Example: PO was 100 cases at $50/case. You shipped 95 cases. Chargeback: 5 × $50 = $250

Code 30s (Various): Damaged/Defective Product

• What it is: Walmart received product but it was damaged or defective
• Penalty: Full product cost + disposal fee
• How to avoid: Proper packaging, quality control before shipment

Code 64: Shortage Claim

• What it is: Walmart counted fewer units than your ASN stated
• Calculation: Missing units × unit cost
• Common cause: ASN said 1,200 units (50 cases × 24 units/case) but Walmart counted only 1,176 units. Someone miscounted or a case was damaged in transit.

Code 65: Merchandise Not Received

• What it is: ASN was submitted but shipment never arrived at DC
• Penalty: Full PO value
• How to fix: Provide carrier proof of delivery (POD) showing Walmart signed for shipment

Disputing Walmart Chargebacks

Dispute Window: 60-90 Days

Walmart allows 60-90 days to dispute chargebacks (longer than Amazon's 30 days, shorter than Target's window).

How to Dispute via Retail Link

1. Retail Link → Invoices → Dispute Manager
2. Select the chargeback to dispute
3. Click "Initiate Dispute"
4. Provide evidence:
   • For shortage claims (Code 64): Photos of carton contents, weight certificates, BOL signed by carrier
   • For missing ASN (Code 21): Screenshot of ASN submission confirmation from Retail Link
   • For late shipment (Code 22): Carrier tracking showing delivery within MABD window (if Walmart DC logged it incorrectly)
   • For price difference (Code 11): Screenshot of original PO showing you invoiced at correct price
5. Submit dispute
6. Walmart responds in 14-30 days

Success rates: Disputes with documentation succeed 40-60% of the time. Disputes without evidence succeed less than 20%.

Cost Comparison: Walmart EDI Software vs CSV Conversion

Let's compare costs for a small Walmart supplier processing 60 POs per month:

Walmart Supplier Best Practices

1. Set MABD-5 Day Alerts

Create calendar reminders or system alerts for 5 days before MABD. This gives you buffer time to prepare shipment and handle unexpected delays (warehouse staffing issues, carrier pickup delays, etc.).

2. Use Retail Link's Suggested Invoice Feature

Never manually create invoices. Retail Link auto-fills invoice data from your ASN and the original PO, ensuring perfect three-way match (850↔856↔810). This prevents Code 11 price difference chargebacks.

3. Submit ASNs Same Day You Ship

Don't wait. As soon as you hand off to the carrier, submit the ASN in Retail Link. Late ASN submission risks Code 21 chargebacks ($50-$100 per occurrence).

4. Photograph Carton Contents Before Sealing

For high-value shipments, take photos showing unit counts in each carton before you seal and apply GS1-128 labels. This is your best evidence for disputing shortage chargebacks (Code 64). Store photos for 90 days.

5. Monitor OTIF Weekly in Retail Link

Check Retail Link → Performance → OTIF Scorecard every Monday. If you're trending below 92%, investigate which shipments are causing issues (late deliveries? short shipments?) and fix the root cause before you hit the 90% threshold.

6. Understand Department Numbers

Different Walmart departments have different compliance standards and penalties. Grocery (Dept 055) is stricter than General Merchandise (Dept 001). Know which department your products fall under and adjust your processes accordingly.

When to Upgrade to Full EDI Integration

Retail Link + CSV conversion works well for small to mid-size suppliers. Consider upgrading to full EDI integration when:

• Volume: 200+ POs per month (manual entry becomes full-time job)
• Multiple Walmart divisions: You supply Walmart, Sam's Club, and Walmart.com (managing 3 Retail Link accounts is complex)
• Real-time inventory sync: You need automatic inventory deduction when Walmart PO arrives
• ERP integration: You're using NetSuite/SAP and want automatic order import
• OTIF consistently below 92%: You need automated alerts and compliance monitoring to avoid the 3% COGS penalty

The Bottom Line: Walmart Supplier EDI Compliance

You don't need $500-$5,000/month EDI software to be Walmart compliant.

Here's what you actually need:

1. PlainEDI ($99/month): Convert incoming EDI 850 POs to CSV
2. Retail Link (free): Submit ASNs and invoices via web portal
3. Good processes: MABD-5 alerts, same-day ASN submission, photo documentation
4. Weekly OTIF monitoring: Stay above 90% to avoid 3% COGS penalty

Total cost: $99/month + 5 minutes per order vs. $500-$1,200/month EDI integration.

Save $6,000-$14,000 per year. Invest that money in inventory, better packaging to reduce damage chargebacks, or warehouse improvements to hit MABD dates consistently.

Frequently Asked Questions