How do I change the transaction type from expense to asset?

Can you clarify what you mean by the inventory showing as an expense, Mario? Are you referring to the transactions in your For Review tab?

Additionally, could you specify which inventory transaction you would like to modify? This will help me verify the situation and ensure we are aligned. It will also assist us in pinpointing the issue and guiding you on how to resolve it.

In accounting, inventory items are associated with different types of accounts: asset accounts, income accounts, and expense accounts. Each account type has a specific purpose in tracking the financial activities related to inventory.

If you mean to change the expense account associated with the item, you can follow these steps:

1. In the menu tab, go to Sales.
2. Proceed to the Products & services.
3. In the search bar, type the item you want to modify.
4. Click the Edit button.
5. Edit the Product/Service information.
6. In the Expense account section, choose Cost of goods sold.
7. Click Save and close.

Inventory is treated as an asset because it represents future economic benefits for your business. When inventory is sold, the expense of acquiring or manufacturing that inventory (COGS) is recognized. Proper tracking of inventory and COGS is essential for accurate financial reporting and analysis.

You may also want to review how your inventory transactions are recorded, and consulting with an accountant could ensure that the categorization aligns with standard accounting principles.

Additionally, consider utilizing QuickBooks Live Bookkeeping to simplify your accounting procedures, maintain accuracy in your financial records, and access expert support. This service can help you concentrate more on expanding your business.

You can also change non-inventory and service items to other types. For instructions on how to change the item type for a product or service, please refer to the article: Change product and service item types in QuickBooks Online.

Furthermore, this article can assist you with merging duplicate items, removing unused items, or reactivating items in QuickBooks Online: Remove a product or service in QuickBooks Online.

If you have any further questions or need additional assistance with your inventory item, please feel free to reach out. Your careful attention to proper accounting practices will greatly benefit your business's financial health.