Help understanding the process when a item is wasted by inventory import

Description

understand the process when the inventory item import runs how does the system determine what is wasted

Environment : PROD 
Store : All stores, Example store 02938

 Steps

1. Navigate to https://inform.cfahome.com/mms_logon.aspx?bypass_sso=true

2. Mobile > Item Activity > Select Buns, Wheat-Locally Purchased (7061) > Date Range 1/19-2/1  

Results :

There are adjustment -waste entries happening every other day at 12AM.

Reason Inventory item is inactive

User Inventory Import

Source Inform 

How does the system determine what items are to be wasted