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M
mphillips4
December 12, 2024
Question

Changing service items to inventory - how will effect past invoices.

  • December 12, 2024
  • 2 replies
  • 0 views

They way our accounts were set up (years ago before me), is that sale items are considered service. So when we add them to an invoice, we also have to subtract the cogs and the inventory. I would like to change them to inventory items so we only have to enter one line item for the sale instead of 3 line items. Can I set them up to do this? And - How will this effect past invoices? Right now our inventory is set up backwards ( I think this was to offset the cogs) i.e.

1. Sale of item = 4

2. COGS item= (2)

3. Item inventory= 2

 

2 replies

K
KiazzymaeC
December 12, 2024

Hello there, @mphillips4.

 

You have the option to convert a service item into inventory, but please note that this action will not change the three line items into a single line item.

 

You can follow the steps below:

 

  1. In the upper right corner of your screen, hit the Gear icon.
  2. Under the Lists column, choose Products and Services.
  3. Find the service item you want to change.
  4. Click Edit in the Action column.
  5. Select Change Type.
  6. Choose Inventory.
  7. Follow these steps to set this item up as an inventory item.
  8. When you're done, select Save and Close.

 

Moreover, I recommend consulting with your accountant before doing so to make sure the changes are appropriate according to your business needs and accounting standards.

 

On the other hand, you can also merge all service items into one. Refer to this article: Remove a product and service in QuickBooks Online, scroll down a bit, and find: merge a non-inventory item and service. However, this will affect your historical transactions and financial reports.

 

To make sure your past transactions are safe, I highly recommend you start tracking upcoming transactions with new inventory items instead.

 

For your future reference, you can visit these articles:

 

 

Please don't hesitate to inform me if you still need assistance in changing your service items into inventory. I'd be more than happy to help you. Stay safe.

M
mphillips4Author
December 12, 2024

If changing the type to inventory doesn't post the cogs and adjust inventory - then what is the point of having inventory. 

M
MoiraskyeT
December 12, 2024

Hi,@mphillips4.


We understand the importance of efficiently managing your transactions in QuickBooks Online and we are committed to helping you achieve this with ease.

 

QuickBooks inventory management allows for effortless tracking of your best-selling products and identifies items that need replenishment. Moreover, as inventory values change, your balance sheet is instantly updated to reflect these fluctuations, keeping your financial records accurate and up-to-date.

 

Here's more Information about Inventory: Manage Inventory.


Our Community Team is available to help with any further questions you may have about Inventory in QuickBooks Online. Feel free to click the Reply button below to submit your inquiries, and we'll get back to you quickly.

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