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Level 1

Change the income account to a product or service item

If I change the income account to a product or service item would that affect all of the prior transactions? 

3 Comments
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QuickBooks Team

Change the income account to a product or service item

I'll share some insights about changing the account for a product/service item, 1baradas.

 

When we change the account of a product or service, QuickBooks will prompt us if we'd want to update the past transactions or not. For service and non-inventory items, the program will provide us the Also update this account in historical transactions checkbox if we'd like to apply the changes to all of the transactions that use the item.

 

For inventory  items, the checkbox doesn’t appear since inventory items track quantities on hand using First In, First Out (FIFO) method. FIFO affects your assets and Cost of Sale (COS) differently from service and non-inventory items. If we change the income account for inventory items, it will only affect the new transactions. If you want to update all the past transactions, we can create a new item with the correct income account and use it to replace the old item. 

 

I'll guide you how:

  1. Select Sales from the sidebar menu, then choose Products and Services.
  2. Click the New button, then select Stock.
  3. Enter the necessary information, then click Save and close.
  4. Go back to the Sales menu, then select Invoices.
  5. Choose the invoice that you want to update.
  6. Select the delete icon at the end of the line of the old inventory item.
  7. Add the new inventory item, and enter the corresponding quantity.
  8. Select Save.
  9. Repeat the same process for the past transactions that you want to update.

Here's how to change the income account for your items:

  1. Select Sales from the sidebar menu.
  2. Choose Products and Services.
  3. Select the appropriate item, then click Edit in the ACTION column.
  4. Choose the account that you want to use from the Income account drop-down menu.

In case you need to track your best sellers or the total sales for each product or service, you can refer to this article in utilizing reports to see your sales and inventory status.

 

Feel free to drop a comment below if you have further questions about this matter. I'm always available here and ready to help.

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Level 1

Change the income account to a product or service item


@KlentB wrote:

...When we change the account of a product or service, QuickBooks will prompt us if we'd want to update the past transactions or not. For service and non-inventory items, the program will provide us the Also update this account in historical transactions checkbox if we'd like to apply the changes to all of the transactions that use the item. ...

 

I am not prompted as to whether I want to update past transactions after changing the income account of a service item.

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Moderator

Change the income account to a product or service item

Hello there, Tom_von_Alten,

 

You'll want to check if the past transactions are automatically applied. Check the bank register to see.

 

Furthermore, if it didn't update past transactions, you can toggle it to a different account. Then, toggle it back to its correct account.

 

Here's an article for reference: Change the account for a product/service item.

 

 

Let me know how it goes, and don't hesitate to leave a reply if there's anything else I can help you with.

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