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Change the account for a product or service item in QuickBooks Online

by Intuit Updated 1 week ago

Learn how to change the income account for any of your product or service items in QuickBooks Online.

You may need to use a different income account for your product or service item and make sure your company has an accurate record of your transactions.

Change the income account for your items

  1. Go to Settings Settings gear icon. and select Products and services.
  2. From the Action column of the appropriate item, select Edit.
  3. From the Income account▼ dropdown, choose the account you want to use. 
    Note: Can't see the account? Make sure the account's detail type is Sales of Product Income.
  4. Select Save and close.

To check:

  • Go to Settings Settings gear icon. and select Chart of accounts.
  • From the Action dropdown of the account, select Edit.
  • Change the detail type to Sales of Product Income if necessary.
  • Select Save and close.

Note: You can only change the account for an item one at a time.

For service and non-inventory items, tick the Also update this account in historical transactions box after step. This updates all transactions that uses the item.

For inventory  items, the checkbox doesn’t appear. This is because inventory items track quantities on hand using First In, First Out (FIFO). FIFO affects your assets and Cost of Sale (COS) differently from service and non-inventory items.

When you change the income account for inventory items, it only affects new transactions. If you want to update past transactions, create a new item with the correct income account and use it to replace the old item. To do this:

  1. Go to Settings Settings gear icon. and select Products and services.
  2. Select New, then choose Inventory.
  3. Enter all the information needed. Make sure to select the correct income account.
  4. Select Save and close.
  5. Go to Sales, then select Invoices (Take me there).
  6. Select the invoice you want to update.
  7. Select the delete (trash can) icon at the end of the line of the old inventory item.
  8. Add the new inventory item, and enter the corresponding quantity.
  9. Select Save. Do this for the past transactions you want to update.

If past transactions aren't showing the changes, change the income account then switch it back to the correct one.

  1. Go to Settings Settings gear icon. and select Products and services.
  2. Under the Action column of the appropriate item, select Edit.
  3. From the Income account ▼ dropdown, choose a different account.
  4. Select Save and close.
  5. Under the Action column of the same item, select Edit.
  6. From the Income account ▼ dropdown, choose the correct account.
  7. Tick the Also update this account in historical transactions box.
  8. Select Save and close.
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