Change product and service item types in QuickBooks Online

When you add products and services as items in QuickBooks, you give them a type. There are four item types: stock, non-stock, services, and bundles. These help you categorise the products and services for better tracking.

Note: You can't change bundle items. QuickBooks automatically assigns them a category.

1. Go to Settings and then select Products & services (Take me there).
2. Find the non-stock or service item you want to change.
3. Select Edit in the Action column.
4. Select Change type.
5. Select Non-stock, Service, or Stock.
6. Follow the steps to set the item up as a non-stock or service item, or an stock item.
7. When you're done, select Save and Close.

Adjust stock items

The value of your stock is based on the quantity you have in stock. QuickBooks tracks this value in your Stock Asset account, which is part of your Balance Sheet. You change stock 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 stock 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 stock item inactive. Then you can create a new non-stock or service item to replace it.

Or, if you made a mistake and need to remove an stock item, you can make an stock adjustment. This records what you changed and keeps everything balanced. You shouldn't adjust your stock 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 stock item, there are several steps. First, adjust the stock item's quantity:

1. Select Settings and then Products & services (Take me there).
2. Find the stock item. Then select Edit from the Action column.
3. In the Quantity on hand section next to Adjust, select Quantity.
4. In the Stock Quantity Adjustment window, enter 0 in the New Qty column.
5. Select Save and close.

Now you have no stock for that item in QuickBooks. Next, get the total value of what you adjusted:

1. Select Settings and then Chart of accounts (Take me there).
2. Find the Stock Shrinkage account and select Run report.
3. Look for the stock item you adjusted. Take note of the amount of the adjustment.

Finally, create a journal entry to account for the adjusted stock:

1. Select + New.
2. Select Journal entry.
3. On the first line, select Opening Balance Equity from the Account ▼ dropdown.
4. In the Debit column, enter the amount of the adjustment.
5. On the second line, select the Stock Shrinkage from the Account ▼ dropdown.
6. In the Credits column, enter the same amount of the adjustment.
7. Select Save.

Now you've accounted for the stock adjustment and balanced your books. Follow the steps to make the stock item you want to remove inactive.