Manage QC Failed Inventory (Web) | Bad Inventory Handling

Manage QC Failed Inventory (Web) | Bad Inventory Handling

Software Plan : Growth & Enterprise
Account Type : Seller Account & 3PL
Inventory Type : Serialized & Non-Serialized

Overview

Inventory that fails Quality Check (QC) cannot be handled in the same way as saleable inventory.

Rejected inventory is managed by recording the reason for rejection, assigning an Inventory Status, and validating where the inventory can be stored during Putaway. This keeps different categories of rejected inventory separate throughout warehouse operations.

QC-failed inventory can originate during GRN, Returns, and supported Outbound QC processes.

Use Case

Use QC Failed Inventory Management when inventory fails Quality Check (QC) during warehouse operations and must be stored separately from saleable inventory. Common scenarios include:

  1. Inventory received through GRN fails Quality Check.
  2. Returned inventory fails inspection during Return QC.
  3. Inventory fails supported Outbound QC processes.
  4. Different categories of rejected inventory, such as Damaged, Repair, Quarantine, or Fraud, need to be tracked separately.
  5. Rejected inventory must be stored only in compatible Bad Zone bins based on the assigned status.

Prerequisites

Before processing QC-failed inventory, complete the following configurations.

1. Configure Reasons Master

QC Reasons must be configured before users can record QC failures, using Reasons Master

Reason Master maintains separate QC Reasons for:

  • GRN Quality Check
  • Return Quality Check
  • Outbound Quality Check

Each process maintains its own set of QC Reasons. A reason created for one process is not available in the others.

Configure QC Reasons in Reason Master – Configure QC Reasons for GRN, Returns, and Outbound.


2. Configure Bad Zone Bins

Create the required Bad Zone and Bad Zone bins before processing QC-failed inventory.

If Inventory Status level validation is enabled, configure the appropriate Bin Type for each Bad Zone bin.

Configure Bad Zone bins as described in Bins Master – Configure Zones, Shelves, Bins, and Totes.


3. Enable Required Settings

The following backend settings must be enabled for the applicable workflow.

SettingDescription
QcFailPutAwayEnables Putaway for QC-failed inventory.
enableGrnQcFailSerialEnables GRN QC Fail for serialized inventory.
badBinStatusLevelValidates Bad Zone bins based on the assigned status.
newPutAwayAndroidEnables QC Fail Putaway on Android devices.
continuousPutAwaySettingEnables continuous serial scanning during Android Putaway.

Contact the EasyEcom Support Team if these settings need to be enabled.

Workflow


Recording QC Failure

QC-failed inventory can be recorded during:

  • Goods Receipt Note (GRN)
  • Return Quality Check
  • Supported Outbound Quality Check

The process for recording rejected inventory remains the same irrespective of where the Quality Check is performed.

During GRN

When inventory fails Quality Check (QC), enter the Rejected Quantity.

After entering the rejected quantity, the Rejection Reason window opens.

For each rejected quantity, record:

  • Rejection Reason
  • Quantity

Use Add Row to record multiple rejection reasons for the same transaction.


Each QC Reason is mapped to an Inventory Status in Reason Master. Multiple QC Reasons can be mapped to the same Inventory Status.

The selected reason determines the assigned status to the rejected inventory.

Click Next and complete the transaction.

If bin allocation is completed immediately, the rejected inventory is assigned to the selected Bad Zone bin.

If bin allocation is deferred, the rejected inventory remains pending until Putaway is completed.

During Returns

When a returned item fails inspection, select the applicable QC Reason while completing the return process.

Navigation: Orders → Returns & Replacements

The selected QC Reason determines the assigned status for the rejected inventory.

After the return is completed, the rejected inventory becomes available for Putaway from Inventory → Putaway → Return.

Putaway

Rejected inventory is put away from the corresponding Putaway queue based on how the inventory was received.

GRN Putaway

If bin allocation is deferred during GRN, complete the pending Putaway from Inventory → Putaway → GRN.

Select the pending transaction and enter the destination Bin for the rejected inventory.

Return Putaway

After a return is completed, the rejected inventory is available in Inventory → Putaway → Return.

Select the returned inventory and enter:

  • Quantity
  • Batch (if applicable)
  • Bin


Bin Validation

  • Scan/Enter a compatible Bad Zone bin.
During Putaway, the destination bin is validated before the inventory is stored.
When Inventory Status level validation is enabled:
  • The destination bin must belong to a Bad Zone.
  • The selected Bin Type must match the assigned status.
If an incompatible bin is selected, Putaway cannot be completed.
After Putaway is completed, the rejected inventory is stored in the selected Bad Zone bin.

Inventory Visibility

After Putaway is completed, the rejected inventory is available in Inventory → Manage Inventory under the assigned status.


The inventory is displayed under the Inventory Status mapped to the selected QC Reason.

Important

  • QC Reasons are maintained separately for GRN, Returns, and Outbound Quality Check. A QC Reason created for one process is not available in the others.
  • Every QC Reason is mapped to an Inventory Status. The selected QC Reason determines the assigned status to the rejected inventory.
  • Multiple QC Reasons can be mapped to the same Inventory Status.
  • Rejected inventory must be stored in a Bad Zone.
  • When Inventory Status level validation is enabled, the selected Bin Type must match the assigned status.
  • Suggested Bins are recommendations. A different compatible Bad Zone bin can also be selected.
  • Putaway cannot be completed if an incompatible Bad Zone bin is selected.
  • Quality Check must be completed during the current transaction. Only Putaway (Bin Allocation) can be deferred.
  • Inventory is available under the assigned status only after Putaway is completed.

FAQs

1. Can multiple QC Reasons be assigned to the same transaction?
Yes. Use Add Row to record multiple QC Reasons for a rejected quantity within the same transaction.

2. Can multiple QC Reasons be mapped to the same Inventory Status?
Yes. Multiple QC Reasons can be mapped to the same Inventory Status in Reason Master. The selected QC Reason determines the assigned status to the rejected inventory.

3. Can Putaway be completed later?
Yes. During GRN, if rejected inventory cannot be stored immediately, select Later during bin allocation and complete the pending Putaway from Inventory → Putaway → GRN.

4. Can rejected inventory be stored in any bin?
No. Rejected inventory must be stored in a compatible Bad Zone bin. When Inventory Status level validation is enabled, the selected Bin Type must match the assigned status.

5. Where can I view rejected inventory after Putaway?
After Putaway is completed, rejected inventory is available in Inventory → Manage Inventory under the assigned status.

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