Ruthie,
We have used this BADI while QM Implementation for considering the QM Inspection Lots stock details in MD04, MD05. (Screenshot F Y I ).
On your query: False Insp.Lots were not appeared in our case & Once the Lot is cleared/Inspected - Qty is appeared correctly aftering implementing the BADI.
check the below & let me know if you have any queries.
Vishal.