For ease of access, we put all our products, and services in item type so that we can get them easily. Changing the service or inventory item type in QuickBooks means it was added in the incorrect item type. In this article, we are going to cover the process to change item type in QuickBooks in a simple way, read the whole article and you will be able to change service or inventory type in QuickBook simply. For any help, you may contact us with our QuickBooks ProAdvisor +1-855-525-4247.
Whenever we add any service or product in QuickBooks Online as an item, we need to put them in item types, which makes it easy to track the item in a better way. And we can get the tracking information of the item correctly. But sometimes, due to the incorrect item type, we need to change service or inventory item types in QuickBooks.
Let’s go to the deep to know more about this topic;
Table of Contents
Item Types in QuickBooks
Basically, we put the product or the service in four item types; services, inventory, non-Inventory, and bundles. There are some basic things to need before categorizing any service or any product in the item types, which are mostly ignored by the users. And after that, they need to change service or inventory item types in QuickBooks.
Check the below-listed points before categorizing any item type in QuickBooks.
- The non-inventory and service item types can be changed into other item types except the bundle.
- You can change the non-inventory item to inventory, and service.
- And can change the Inventory to non-inventory, and service.
- Service to non-inventory, and inventory.
- But remember that, the bundle item type can’t be changed into any item because QuickBooks automatically assigns all the bundle category service in the bundle item type.
Keep all the above points in your mind before categorizing any service, or during the type of changing services.
How to Change Service Types in QuickBooks
Follow the process to edit the service, and product type in QuickBooks:
- Sign in to QuickBooks Online, and go to the ‘Settings’ tab.
- Select the ‘Products and Services’ option from the ‘Settings’ tab.
- From the ‘Action’ column, select the ‘Edit’ option.
- Now select ‘Change Type’.
- Choose the appropriate type (Non-inventory, Service, or Inventory).
- Select the ‘Save and Close’ option to save all the changes.
- You can use the ‘Batch’ action from the ‘Product and Services’ list, if you want to change multiple items to any type.
Inventory Items in QuickBooks
Inventory is the part of the balance sheet, which shows the quantity that we have in our stock. Because of this, we can track inventory to the inventory asset account. We change, delete, remove the inventory item because it is part of the business overall value.
Case 1: When we need to change an inventory item to another
If you want to change an inventory item to another item, then you can simply sell all stuck to make the inventory quantity 0 to inactivate it. After that, create a new item to replace it.
Case 2: When you have made a mistake, & need to remove the inventory
In this case, you can make an inventory adjustment. This will keep everything balanced.
How to Change Inventory Items in QuickBooks
Follow the three steps to change inventory items in QuickBooks;
Step 1: Adjust the Quantity of Inventory Item
- Select the ‘Products and Services’ option from the ‘Settings’ tab.
- From the ‘Products and Services’ list find out the inventory item, and select the ‘Edit’ option from the ‘Action’ column.
- Go to the ‘Quantity on Hand’ section, select the ‘Adjust’, and then the ‘Quantity’.
- Now in the inventory quantity adjustment window, put the 0 value, in the new quantity window.
- Save all the changes, and close by clicking the ‘Save and Close’ option.
Step 2: Find the Total Value of Adjusted Inventory
- Again go to the ‘Settings’ tab, and select the ‘Chart of Accounts’.
- From the ‘Chart of Accounts’ section, find out the ‘Inventory Shrinkage Account’, and select the ‘Run Report’ option.
- Now search for the inventory item that you have adjusted. And keep the amount of the adjusted note in another place.
Step 3: Create a Journal Entry to Account
- Click on the ‘+New’ option, and select the ‘Journal Entry’ option.
- From the first line, go to the ‘Account’ drop-down menu, and select the ‘Opening Balance Equity’ option.
- Debit Column:- Enter the adjustment amount in this field.
- From the second line, go to the ‘Account’ drop-down menu, and select the ‘Inventory Shrinkage’ option.
- Credit Column:- Enter the same adjustment amount in this field
- At last, select the ‘Save’ option.
Wrapping Up
That’s all everything about the changing of service, and inventory items. Hope you like it, and now you are able to do it by yourself. Maybe changing of service or inventory item types in QuickBooks Online little tricky for you, so it will be good to adjust the inventory with the presence of a QuickBooks ProAdvisor. He/She can guide you in the right direction to complete the process successfully.