On the orders page there is a button to Reship the order. You can select the items you want to ship again, and it will also have an option to add back the inventory that was removed from the original shipment.
When you reship the order and then generate a new label, by default the stock will be removed again. So if you had 10 units and shipped one. Now you have 9. The customer says it was damaged in transit so you reship, now you have 8.
But what if when you re-ship you want the stock to still be at 9, for example if the package hasn’t left your building yet and you just need to generate a different label for it.
In that case you will still re-ship, and this time you will check off the box to add back to inventory.
So you had 10, shipped one, now you have 9. Then you re-shipped and added back to inventory, so you have 10. Then when you ship that package your stock will go down to 9.
The changes are all logged on the order and on the product.
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