How can I transfer a fixed asset item to an inventory account???Should I do a journal entry to cancel accumulated depreciation?

Hi there, Annamaria.

I'll ensure you can get through this and move a fixed asset item to an inventory account in QuickBooks Online (QBO).

In QuickBooks Online, you can use a journal entry to transfer a fixed assets item to a different account and this will include validating the depreciation and creating a new item to transfer fixed assets to inventory. 

Here's how to create a journal entry:

1. Go to + New and then select Journal entry (Take me there).
2. On the first line, select an account from the Account field. Decide if you need to debit or credit the account. 
3. Then, enter the amount in the correct column.
4. On the second line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. It means the accounts are in balance.
6. Click Save and close.

If unsure of the process and the correct accounts to choose, I recommend consulting an accountant. They'll be able to assist in ensuring the item will be transferred accurately.

Additionally, I've added these resources to help you manage the accounts that QuickBooks uses to track your financial information and learn how to find transactions in your account registers so you can review or edit them:

• Learn about the chart of accounts
• Review the transaction history and current balance

Please know that you're always welcome to comment below if you have follow-up inquiries about managing your inventory and fixed assets. I'm just around to help. Have a great day.