Units that fail QC at the time of inward are quarantined in a separate area of the FC. In parallel, the QC rejection report clearly mentioning the units rejected along with reasons for rejection is shared with the seller. The following cases can arise:
Quantity is less than PO: Inventory adjustment is created in the WMS
SKU is correct but quantity is higher than PO: Fresh PO created to inward excess inventory
SKU is different from PO: Fresh PO created to inward excess inventory
Damaged SKU: Either destroyed or return to seller
Based on the inputs from the seller, necessary action is taken in the warehouse.