Originally QuickBooks was designed to only have two types of inventory items, and these were stocks and services. Looking for how to change item type in QuickBooks, believe us you don’t want to do this. Though QuickBooks is highly flexible and you can change pretty much everything but still, you may not want to change inventory items to non-inventory within 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 reason we emphasize not changing the inventory type is that you will then risk your financials. Changing inventory items to noninventory will modify every transaction within your books, back to start. In the worst case, you will end up modifying your financial statements. This will be an unrecoverable loss that you may not want to bear.
Steps on How to Change Item Type in QuickBooks to Non-inventory
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 Type in QuickBooks to Non-inventory
- From your QuickBooks dashboard, click on the reports
- Navigate from the list option to the item list.
- This will now show you the list of all the items that you would likely want to change as non-inventory items.
Click modify reports button from the bottom of your displayed window.
- Choose filters
- Select the type button and choose inventory.
- You will now be shown the list of all the items that fall under the said category.
- Print the report and secure the same.
- This will further help you match all your entries that you plan to convert as non-inventory types.
- Choose the list tab again to select the item list.
- To change the inventory type, click on the items button and select new.
- Choose non-inventory your type category.
- Within the name and number fields, provide the details that are something different and don’t match with the current item type.
- Click next and follow the same steps above to change your next inventory type.
- Continue with the same steps until you have finished converting all your inventory types within QuickBooks.
Detailed Steps on How to Change Inventory Type
Before you do any modifications and know how to change item types in QuickBooks, it’s best to secure your data. To create a backup, just follow the steps given below:
Steps to Secure your Financials
- Login to your QuickBooks dashboard and choose the file option from the main navigation panel.
- From the drop-down button, choose to create a copy from the predefined list of options.
- Save your newly created copy and click on the next
- You will now be asked for the local drive within which you would like to save your backup file. Browse the location and hit ok.
- Choose the save it now button and click “Finish” to exit the window. This will finally secure your data in your preferred local drive.
Alternative for “How to Change Item Type in QuickBooks?”
If for any reason, you want to change the inventory type then instead of using a direct approach which can even risk your financials use this alternative. To summarize, here are the few steps you need to follow:
- Duplicate all your inventory items.
- Mark all your duplicated stock as non-inventory.
- Change the status of the current original inventory as inactive.
- Use duplicated stock marked as non-inventory going forward.
Steps to Make your Inventory Inactive
Now that you know how to change item types in QuickBooks, it is time to make your current item inactive. This can be done by following below:
- From QuickBook main navigation menu, choose the vendor’s tab.
- Move from inventory activities to adjust the quantity in hand.
- Press enter the date, from when you want your inventory to be made inactive.
- Under the new quantity column tab, provide the new quantity for the given inventory as “0”.
- Save your preferences and this will bring down your inventory quantity to nil within your balance sheet. Practically this will make your item inactive since you have no quantity at hand.
- Verify if the modification done above brings any change within your balance sheet and Profit & Loss account. This can be done as:
- To check the Balance sheet report: Navigate from Reports > Memorized reports > Accountants > Balance sheet.
- To check profit and loss report: Navigate from Reports > Memorized reports > Accountants > Profit and Loss account.
- If you don’t see the changes already then try adjusting the dates and most likely all your changes will appear.
Hope you are now able to figure out how to change item type in QuickBooks. If for some reason you are still not able to follow the steps above, then we would suggest talking to our QuickBooks Experts. QuickBooks consultant helpline number stays active round the clock.