Clarification regarding Inline MFG inspection

Summary:

Our customer has MFG steps (Work Definition) as follows

-- Item A is FG item

-- It goes through the following operations like (10)CUTTING, (20)MACHINING and (30)ASSEMBLY

-- The inspection process is at Operation 10 (CUTTING) and Operation 30 (ASSEMBLY)

-- Inline inspections, when triggered at CUTTING operation, see that the item in question (in Review Dispatch list) is the FG item.

How can we put the inspection against the FG item in that case as the FG item is not made yet?

Also, if there is a rejection that leads to Scrapping at this operation, how will we scrap FG item (as its not yet made)? What will be scrapped in this case?