Recoup vs sending out N/C

All,

Hoping for some thoughtful responses here. We occasionally have a broken open master case where we would simple discard any damaged unit and send the remaining units out to a store at no charge. I'm thinking this wouldn't be considered re-working or recouping due to the fact we are not, as an example, making 3 cases into 1sellable unit and billing the store for it. Just looking for some perspective from the group.

Thanks

Does not matter whether you are charging for it or not - it could be classified as "recoup" but a better classification would be "recycle."