Should you want to keep the failed stock but move this to an alternative Location, you can use the Failure Response of Transfer Orders.
Before you can use Transfer Orders from a "Quality Order", some setup is required.
In all the "Location cards" that you may want to use "Transfer Orders" from, you can select what Quarantine Location you want to send goods to. In order to do this, you must first create the Quarantine Location as its own "Location Card" so that you can then assign it per Location.
Once your Location has been created and you have selected a Quarantine Location on the "Location Cards" you may Transfer Goods from for failed "Quality Orders", you need to create "Transfer Routes".
In here is a matrix view of all the existing Locations on the left of the table going down, showing the Location you want to set the route up FROM. Going across the matrix from left to right is the same Locations, this time representing the Location you want to set the route up TO.
Using my Quarantine Location as above in an example, I know as a Business I will receive the majority of my Items into Locations 'East' and 'Main'. Therefore on both of those "Location Cards", I have populated the Quarantine Location for Location 'Quarantine'.
On the "Transfer Route", I now just need to select in the matrix where 'East' (on the left) and 'Quarantine' (at the top) meet in order to define what In-Transit Code I am using. I then need to do the same but this time, from 'Main' (on the left) and 'Quarantine' (at the top) to set this up for this Location From and To. Doing this for both those locations then sets up the In-Transit Codes by default for those Locations to my Quarantine Location, so that when I then run a "Transfer Order" from my "Quality Order", it will create successfully.
When you click into the 3 dots of the matrix line (which specifies nothing is yet set up for that From and To matrix), it will open up this screen that requires the fields populated. Choose the relevant In-Transit Code you want to use when transferring goods from 1 location to another. Confirm the Shipping Agent Code from the dropdown and if you have Shipping Agent Service Code then also specify this. Ensuring these are populated will pre-populate them on the "Transfer Order".
Once these are populated, your setup is complete and you can now use "Transfer orders" from "Quality Orders".
Failure Response - Transfer Orders
From the "Quality Order", where you have an Overall Result of 'Fail', you can create a "Transfer Order" either of the full quantity or Failed Quantity.
Whichever action you choose will update the Qty Transferred field on the "Quality Order" for visibility. From the "Transfer Order", you will continue to process this as normal (creating the shipment and receipt). The Lot No/Serial No from the "Quality Order" will automatically be updated in the "Item Tracking Lines".
Once the "Transfer Order" has been posted, the "Quality Order" can be Posted, closing this process down now action has occurred.