Thanks for posting to the Community, @MRC815.
The functionality to automate SKUs in QuickBooks Online is unavailable right now. The same in QuickBooks Desktop, I recognize this feature is helpful in future updates, and I'm taking note of this one. In the meantime, you can input the SKU by entering it manually when adding new products/services.
Also, I encourage you to visit our QuickBooks blog that releases news and updates like product enhancements and beta testing.
You can reference this article as your guide when updating items, that include the steps on how to change the item type: Add, edit, and delete items.
Also, you can group your products and services into different categories to keep your items organized in running reports.
Remember me here and leave a comment if you have additional questions in QuickBooks. I'm always here to help. Have a great Sunday!