For service and non-stock items, select the Also update this account in historical transactions checkbox after step. This updates all transactions that uses the item.
For stock items, the checkbox doesn’t appear. This is because stock 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-stock items.
When you change the income account for stock 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:
- Go to Settings ⚙ and select Products and Services.
- Select New, then choose Stock.
- Enter all the information needed. Make sure to select the correct income account.
- Select Save and close.
- Go to the Sales menu, then select Invoices.
- Select the invoice you want to update.
- Select the delete (trash can) icon at the end of the line of the old stock item.
- Add the new stock item, and enter the corresponding quantity.
- Select Save. Do this for the past transactions you want to update.