Learn how to change the item type for a product or service.
When you add products and services as items in QuickBooks, you give them a type. There are four item types: inventory, non-inventory, services, and bundles. These help you categorize the products and services for better tracking.
If you picked the wrong type, you can change it later on. There are a few things to keep in mind and we'll help you make the best choice.
Change item types
You can change non-inventory and service items to any other type. That means you can change a non-inventory item to a service or an inventory item. Or you can change a service item to an inventory or non-inventory item.
Note: You can't change bundle items. QuickBooks automatically assigns them a category.
If you want to change multiple items to service or non-inventory items, use Batch actions on the products and services list.
The value of your inventory is based on the quantity you have in stock. QuickBooks tracks this value in your Inventory Asset account, which is part of your Balance Sheet. You change inventory items types the same way because it would delete assets that are part of your business's overall value. If you need to change an inventory item to another type, you have a few options. You can simply sell what you have in stock. When the quantity is zero, make the inventory item inactive. Then you can create a new non-inventory or service item to replace it. Or, if you made a mistake and need to remove an inventory item, you can make an inventory adjustment. This records what you changed and keeps everything balanced. You shouldn't adjust your inventory for any other reason without help from your accountant. If you're unsure, reach out to your accountant. This can get tricky and they know how to handle the next steps.
Don't have an accountant? We can help you find one. If you decide you need to remove an inventory item, there are several steps. First, adjust the inventory item's quantity: Now you have no inventory for that item in QuickBooks. Next, get the total value of what you adjusted: Finally, create a journal entry to account for the adjusted inventory: Now you've accounted for the inventory adjustment and balanced your books. Follow the steps to make the inventory item you want to remove inactive.Adjust inventory items