Change Item Types in QuickBooks

Originally QuickBooks was designed to only have two types of inventory items, and these were stocks and services. Let’s figure out how to “change item types in QuickBooks“.

But with new features and updates, there was an introduction to recording even non-inventory items within the program. If you are confused about what non-inventory items are and how they differ from other item types then read this. But this new capability has come with its own set of limitations.

QuickBooks Item Types

The way the program is designed, you can’t simply change the item type directly, but here are the steps we will be going through in detail in the later section:

Note:  Before going any further, backup your data so as to have extra security for your financial data.

• Select the item for which you want to change the item type.
• Change its assembly type.
• Duplicate the items and put them in the section of non-inventory items.
• Use these non-inventory items for any future references.
• To make your other sets of duplicate inventory items inactive, you would have to zero the balance within the balance sheet.

Steps to Change Item Types in QuickBooks: Detailed process

Since we will be working with Companies’ financials thus it is very important to have a backup copy created. To do that:

Step 1: Backup your Data

• Login to your QuickBooks company files and click on the files tab.
• From a drop-down menu, choose to click on the create copy button.
• When the dialogue box appears, click “Save a backup file”.
• Click on next.
• Navigate from the local backup radio button to click on the options tab.
• To store your backup file, click on the browse button and select the location.
• Scroll down to the bottom of your screen and hit the verification, Click on next.
• When your backup is complete, click on the Finish button and your backup will be saved successfully.

Step 2: Change Item Types in QuickBooks

Since you want to have your inventory items converted to the non-inventory item, thus you would need to follow these below-given steps:

• With your QuickBooks logged in, click on the reports.
• Choose a list and click the items list from the drop-down menu.
• This will show up all the items of your business so far registered with QuickBooks.
• Click on the filters and set up your preferences.
• Choose the type button and from the options provided, click on the inventory This will display all your inventory items with that particular type.
• Print your report if needed by clicking on the prints tab.
• Now choose the list tab again and navigate from items list to items and then finally to new
• Here change the type from inventory to non-inventory.
• Provide the necessary details for your non-inventory item.
• Please make sure that the provided details should have similarities with your inventory items.
• Click on next and submit the details for another item.
• Hit finish when you are done and this will successfully change the type of your item.

Adjust Quantity of your Inventory

• Choose the vendors option from your navigation menu and select the inventory activities.
• Adjust the Quantity at hand.
• Choose the date range for which you want to make an adjustment.
• Select COGS under adjustment account.
• Supply the quantity as “0” as you would want to show negligible balance for the inventory type item.
• Save your settings and your Quantity balance will be reduced to nil.
• This will practically inactivate your items for that particular inventory.
• Just to verify, check whether your balance sheet account for that inventory has been reduced to zero or not.
• Ensure that the same has been done with the profit and loss accounts as well.

Following the above process, you would successfully be able to change the item type. But if in any case your query “How to change item types in QuickBooks” is still unresolved then your QuickBooks may be at a greater risk.