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Experienced Member

We don't sell products - only services. QB won't let me inactivate the inventory or COGS account, or one called "purchases." How do I get rid of these accounts?

 
5 Comments
QuickBooks Team

Re: We don't sell products - only services. QB won't let me inactivate the inventory or COGS acco...

Hey there, Huxley CPA Consulting.

I'm here to help and provide you with some information about inactivating the inventory or COGS account in QuickBooks Online.

 

If you wish to inactivate the purchases or COGS account, you will first need to make sure that these accounts are not associated with any Products or Services.

 

You have two options to make these accounts inactive. First, you can make the items in Products and Services inactive.

 

Here's how:

 

  1. Click the Gear icon at the upper right corner.
  2. Under Lists, click Products and Services.
  3. Choose a product or service then click the drop-down arrow and select Make inactive.

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Second, make sure that COGS or purchases are not used as the default account for your Products and Services.

 

To verify this, here's how:

 

  1. Click the Gear icon at the upper right corner.
  2. Under Lists, click Products and Services.
  3. Choose a product or service then click Edit.
  4. Go to an Expense account, make sure Cost of Goods Sold (COGS) is not selected or you can change the account used.
  5. Hit Save and close.
  6. Do the same steps for other items.

 

 

 

After that, you can try to inactivate your purchases or COGS account. You can get more details in these articles:

 

Keep me posted if you need anything else with inactivating accounts in QuickBooks Online. I'm here to help you out.

Experienced Member

Re: We don't sell products - only services. QB won't let me inactivate the inventory or COGS acco...

Thanks, but this didn't seem to solve it.  None of our services have the box checked which says, " I purchase this product/service from a vendor," so the expense field isn't active.  Do I need to make it active for each of our 15 services by checking the box, change the expense account to something other than "Purchases," and then uncheck the box again, then save? 

Highlighted
QuickBooks Team

Re: We don't sell products - only services. QB won't let me inactivate the inventory or COGS acco...

Jumping in to provide additional information, Huxley CPA Consulting.

 

Default accounts, which includes Inventory/Stock Assets and Cost of Goods Solds accountscannot be deleted or inactivated in QuickBooks Online. This is why you're not able to make it inactive in the program.

 

Let me share this article for more details: How to manage default and special accounts in the Chart of Accounts.

 

Visit us again in the Community if you have other questions. 

Experienced Member

Re: We don't sell products - only services. QB won't let me inactivate the inventory or COGS acco...

Thank you for pointing to the article explaining that these accounts can't be deleted.  As feedback for Intuit, it is highly illogical that a service business cannot delete accounts that track inventory and cost of goods sold.  We will never have a tangible product to track as inventory, nor to sell, and it makes no sense to me as to why these accounts can't be inactivated given the type of company we are.  Please make a note for the QuickBooks development team that this is a downfall to their product for all service businesses. These "automatic" accounts also seem to count towards the  maximum 250 account limit for the plan we are on, which also doesn't seem fair or reasonable.  Thank you for your consideration.

QuickBooks Team

Re: We don't sell products - only services. QB won't let me inactivate the inventory or COGS acco...

Thanks for giving us feedback with regards to inactivating the inventory and COGS acocunt, @Huxley CPA Consulting.

 

We value your experience here in the Intuit Community. I'll make sure to pass along your feedback to our Product team.

 

Please know I'm always here anytime you need help with your QuickBooks. Just leave a comment below or don't hesitate to post again.