This article is intended to help give guidance for a scenario when you need to handle items/lots that fail after a lot previously passed inspection in Quality Inspector.  The guidance in this article does not define all possibilities of your scenario, instead we are intended to give broader guidance on how to handle the use case for most scenarios most of the time.

A lot may pass its original quality inspection but later have defects discovered during picking, production, assembly, or another downstream process.

For example, you may receive 100 units of a lot and inspect a sample of those units. The lot passes the receiving inspection and is released for use. Later, while consuming the material in production, an operator discovers that some of the remaining units are damaged or otherwise unacceptable.

Quality Inspector can support this scenario while retaining the original inspection history.

Keep the Original Inspection

In most cases, do not reopen and change the original completed inspection.

The original inspection represents what was known at the time the inspection was performed. Keeping it unchanged provides a clearer history:

• The lot was received.
• The original inspection was completed and passed.
• A problem was discovered later.
• A subsequent inspection or retest recorded the new condition.

What you do next depends on whether the problem affects the entire lot or only part of the lot.

If the Entire Lot Is Affected

If the entire remaining lot should now be considered unacceptable, create a new Quality Inspection Test or a retest rather than altering the original inspection.

A retest is useful when you want the new inspection to be explicitly connected to the earlier inspection.

Complete the new inspection using the newly discovered results. If Quality Inspector is configured to restrict inventory transactions according to the lot’s inspection grade, the new inspection can then be used when determining whether the lot can continue to be used.

There is normally no need to assign a new lot number when the condition applies to the entire lot.

If Only Part of the Lot Is Affected

A different approach is required when only part of a lot has failed.

Quality Inspector inventory restrictions are applied to tracked inventory such as a lot number. They do not identify individual quantities within the same lot as independently passed or failed inventory.

For example:

• Lot LOT100 contains 100 units.
• 80 units remain acceptable.
• 20 units are found to be defective.

Leaving all 100 units assigned to LOT100 would make it difficult to apply different quality controls to the good and defective quantities.

Instead, separate the defective quantity by assigning it a new lot number.

For example:

Lot No.	Quantity	Condition
LOT100	80	Acceptable
LOT100-FAIL	20	Requires further disposition

The lot number naming convention is up to your organization. The important point is that the failed quantity has different item tracking information so it can be controlled independently.

Reclassify the Failed Quantity from the Quality Inspection Test

Quality Inspector provides a Change Item Tracking action that can be used to reclassify tracked inventory.

Note, this can be done manually, or via workflow automation as a workflow response.

From the applicable Quality Inspection Test:

1. Select More Options or Actions.
2. Select Change Item Tracking.
3. Under Quantity, select Specific Quantity.
4. Enter the Quantity to Handle.
5. Enter the New Lot No.
6. If required, use the Location Filter and Bin Filter to identify where the affected inventory is currently stored.
7. Choose how the reclassification should be processed:
   • Post Immediately posts the reclassification immediately.
   • Just Create Entries creates the journal entries so they can be reviewed and posted separately.
8. Complete the action.

Quality Inspector also supports other quantity choices, including the entire tracked quantity, sample quantity, passed sample quantity, and failed sample quantity. Specific Quantity is typically appropriate when a known portion of an existing lot has been identified as defective.

Create a new Quality Inspection Test Document for the New Lot

Once the failed quantity has its own lot number, create a Quality Inspection Test for that new lot.

For example, after changing 20 units from LOT100 to LOT100-FAIL:

• LOT100 continues to represent the acceptable inventory.
• LOT100-FAIL can have its own inspection.
• The LOT100-FAIL inspection can be completed with the applicable failed or otherwise unacceptable grade.

The test can be created manually, or your Quality Inspector configuration can automate test creation where an appropriate test generation rule or workflow is available.

Move the Failed Inventory

After the failed quantity has been separated, determine what should physically happen to it.

Common processes include:

• Move it to a quarantine or quality-hold bin.
• Move it to another location.
• Return it to the vendor.
• Scrap or adjust the inventory.
• Hold it while a disposition decision is made.

Quality Inspector includes inventory disposition and movement actions that can help perform these activities directly from the Quality Inspection Test.

The appropriate process depends on your warehouse configuration and your organization’s quality procedures.

Moving inventory can be done manually directly from the Quality Inspection Test page, or automated via a workflow response, or with a Power Automate flow.

Example

A receipt contains 100 units of LOT100.

A receiving inspection is completed and LOT100 passes.

Later, 20 units are picked for production. During production, 5 of those units are found to be defective.

Instead of changing the original receiving inspection:

1. Identify the 5 defective units.
2. Change their lot number from LOT100 to LOT100-FAIL.
3. Create a Quality Inspection Test for LOT100-FAIL.
4. Record the failed inspection results.
5. Move LOT100-FAIL to the appropriate quarantine or holding area.
6. Leave the original inspection and the remaining LOT100 inventory unchanged.

This provides a clear record showing both the original inspection and the quality issue that was discovered later.

Consider the Physical Process

Before configuring automation around this scenario, determine when defects are normally discovered and who is responsible for handling them.

For example, the process may be different if the defect is identified:

• Before a warehouse pick is registered.
• After inventory has been moved to a production bin.
• During production consumption.
• After some of the lot has already been consumed.

Quality Inspector can support several approaches, but the inventory transaction should reflect what physically happens to the affected material.

Related Documentation

• Select Create Test Behavior and Find Existing Behavior in Quality Inspector
• Block and Unblock Lot Transactions in Quality Inspector
• Configure Grades
• Understand Quality Inspection Templates and Test Generation Rules
• Understanding Test Generation Rules and Source Configuration in Quality Inspector
• Quality Inspector