  We present in this paper a formalism for deuteron-induced inclusive
reactions. We disentangle direct elastic breakup contributions from other
processes (which we generically call non-elastic breakup) implying a capture of
the neutron both above and below the neutron emission threshold. The reaction
is described as a two step process, namely the breakup of the deuteron followed
by the propagation of the neutron-target system driven by an optical potential.
The final state interaction between the neutron and the target can eventually
form an excited compound nucleus. Within this context, the direct neutron
transfer to a sharp bound state is a limiting case of the present formalism.
