Starshipit WMS returns, audits & stock integrity

Starshipit WMS doesn’t just handle day-to-day picking and packing – it also helps you keep inventory accurate over time. This guide focuses on:

• How to handle returns and bring stock back into the warehouse correctly
• How to use returns, damaged and quarantine locations
• How to use stocktakes, movement logs and process logs for audits
• Best-practice stock integrity processes

Returns flows in Starshipit WMS

Returns are items coming back into your warehouse after they have been shipped. Common reasons include:

• Change of mind
• Wrong item shipped
• Damaged in transit
• Failed delivery or RTS (return to sender)

From a WMS perspective, all returns share the same core questions:

• Where should the returned item go first? (e.g. Returns or Quarantine)
• Is it re-sellable or unsellable?
• Should it be returned to stock, scrapped or reworked?
• How should inventory adjustments be recorded for audit?

Processing returned stock into WMS

Returns can be treated similarly to an inbound receipt, but usually with simplified data entry as you’re not receiving against a purchase order.

Basic returns workflow

1. Identify the order the return relates to (via Starshipit, packing slip or RMA reference).
2. Receive the returned goods into a suitable inbound or returns location:
   • Use a dedicated Returns or Quarantine location type.
   • Record key details such as SKU, quantity, and (for tracked products) batch or serial.
3. Inspect the items to decide if they are re-sellable, scrap or require rework.
4. Move or adjust stock based on inspection outcome (see sections below).

Returns for batch & serial tracked products

For products with Batch or Serial tracking:

• Capture the correct batch/serial when receiving the return.
• Ensure the returned batch/serial exists in historical shipment data for traceability.
• If re-shelved, the returned batch/serial becomes available for allocation in future orders.

Quick vs detailed returns

You can choose between:

• Quick returns – receive everything to a Returns/Quarantine location and handle decisions later.
• Detailed returns – inspect and decide (restock/scrap) at the time of receipt.

The right choice depends on volume and the complexity of your return checks.

Returns, damaged & quarantine locations

Starshipit WMS supports specialised location types to keep returned and questionable stock separate from normal stock. Common ones include:

• Returns – general holding area for items that have come back from customers.
• Damaged – items confirmed as unsellable but still needing to be written off or processed.
• Quarantine – items under investigation (quality issue, supplier claim, recall, etc.).

Why use dedicated locations?

• Prevents returned or questionable stock from being allocated to orders prematurely.
• Makes it easy to report on total value of returns, scrap and quarantined items.
• Supports clear processes (e.g. nothing is re-shelved into sellable locations until approved).

Example location flow for a return

1. Receive returned item into RETURNS_STAGING.
2. Inspect:
   • If re-sellable: move to a normal Pick Face or Bulk location.
   • If damaged: move to DAMAGED and perform a write-off adjustment later.
   • If under investigation: move to QUARANTINE until a decision is made.

Rework, refurbishment & restocking

Some returned items can be repaired, relabelled or reboxed and then put back into stock. WMS supports this using a combination of location moves and stock adjustments.

Restocking re-sellable items

1. Receive item into Returns or Quarantine.
2. Inspect and confirm the item is sellable (packaging intact, correct SKU, etc.).
3. Move stock from the returns/quarantine location to a normal Pick Face or Bulk location.
4. Ensure quantities and tracking (batch/serial) are correctly reflected in the inventory dashboard.

Handling scrap or write-offs

If returned goods are not re-sellable:

• Move or keep them in a Damaged location.
• Create a negative stock adjustment from that location, with a reason such as “Returned damaged” or “Scrap”.
• Physically dispose of the goods according to your policies.

Rework and refurbishment

If products can be fixed (e.g. reboxed, re-accessorised):

• Use a dedicated Rework or Quality Control location type.
• Move items from Returns to Rework while they are being processed.
• Once completed, move finished items into normal stock locations.

You can optionally record adjustments if the process involves consuming extra components or scrapping parts.

Audits: stocktakes, movement logs & process logs

Maintaining stock integrity relies on strong audit tools. Starshipit WMS provides:

• Stocktakes – physical counts that correct inventory levels.
• Stock movement logs – a line-by-line history of how each SKU moved over time.
• Process logs – a timeline of events (orders imported, allocated, picked, packed, shipped, etc.).

Using stocktakes in audits

Stocktakes (full or cycle counts) validate that book stock matches physical stock. When posted, stocktakes:

• Generate variance adjustments (gain or loss).
• Provide a timestamped record of when and where corrections occurred.
• Associate discrepancies with specific locations and SKUs.

Using movement logs

Movement logs help you reconstruct the history of a product, including:

• Receipts from suppliers
• Putaway into storage locations
• Picks and shipments
• Returns, adjustments and stocktake variances

For tracked items, logs can be filtered by batch or serial number, supporting recall and compliance scenarios.

Using process logs

Process logs capture higher-level events such as:

• Order imported and status changes (PENDING → RELEASED → SHIPPED)
• Pick and pack job creation and completion
• Expedited flows (Pack Now, Batch Pack Now)

Together, movement logs and process logs provide a complete story of what happened to stock and orders.

Actionable warning resolution

The WMS Dashboard shows actionable warnings for issues such as missing SKUs during order import. Each warning provides:

• Context about what went wrong (for example, which SKU is missing).
• Retry import — re-attempt the order import using the stored webhook payload.
• Create missing SKUs — navigate to the product creation page pre-filled with the missing SKU.
• Dismiss warning — mark the warning as resolved if it is no longer relevant.

Warnings are automatically resolved when the underlying issue is fixed (for example, a warning about a missing SKU is cleared when that SKU is created and the order successfully imports).

Investigating discrepancies

When you find a discrepancy (e.g. stocktake variance, frequent short-picks), you can use WMS tools to investigate.

Typical investigation steps

1. Identify the problem area:
   • Which SKU?
   • Which location?
   • Is it isolated or recurring?
2. Check movement logs for:
   • Recent adjustments
   • Large or unusual receipts
   • High-volume picks or shipments
   • Returns and write-offs
3. Check process logs for:
   • Orders or batches that might have been double-picked or cancelled late
   • Expedited flows that bypassed normal scanning
4. Perform a targeted stocktake on the affected SKUs/locations.
5. Apply corrections via stocktake posting or manual adjustments, with clear reason codes.
6. Update processes if a root cause is identified (e.g. training, labelling, location set-up).

Practices to maintain stock integrity

• Separate returns from sellable stock.
  Always use dedicated Returns/Quarantine/Damaged locations so items are not accidentally reallocated.
• Use consistent reason codes.
  Standardise adjustment and variance reasons (e.g. Damage, Lost, Found, Stocktake variance, Supplier error) so you can report on them.
• Schedule cycle counts.
  Count high-value, fast-moving or problematic SKUs more frequently, and use full counts less often.
• Limit who can perform manual adjustments.
  Restrict this to specific roles to reduce accidental or untracked changes.
• Review movement logs regularly.
  Look for patterns like repeated losses in particular locations or frequent corrections for the same SKU.
• Align with finance and reporting.
  Ensure write-offs and scrap recorded in WMS are reflected in your financial systems where required.

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