My confusion may be coming from the user manual, it refers to "Quality" in places where it should use the term "Morale", if I'm understanding things correctly.
One example: "If the Quality of the firing unit is A, then a +20% modifier applies." Should it read "If the Morale ..."?
Yeah, I guess it should. But for the most part the terms "quality" and "morale" are interchangeable since they essentially refer to the same thing. I could see how it could be confusing though.
I'm guessing that you'd also like to know which units will revert to what quality levels. You can either get familiar with your formations or add back the lost quality from the various factors to figure out what they'd be after a little R&R.