Saving people money so they can live better Finance Overview DSV Kickoff Meeting

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 DSV Kickoff Meeting (Finance)

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 DSV Kickoff Meeting (Finance)

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) DSV Kickoff Meeting (Finance)

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 DSV Kickoff Meeting (Finance)

Select: Check Index Screen (from Drop down menu) Retail Link / 1 Select: Check Index Screen (from Drop down menu) DSV Kickoff Meeting (Finance)

Select the check you want to view Retail Link / 2 Select the check you want to view DSV Kickoff Meeting (Finance)

The check details are presented on a separate screen Retail Link / 3 The check details are presented on a separate screen DSV Kickoff Meeting (Finance)

Sample of System Generated Invoice DSV Kickoff Meeting (Finance)

Sample of a DSV AP Remittance File DSV Kickoff Meeting (Finance)

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 DSV Kickoff Meeting (Finance)

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 no request being processed by FSS DSV Kickoff Meeting (Finance)

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 DSV Kickoff Meeting (Finance)