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Converting Non-Inventory Items to Inventory Items

Posted by Stephanie Kim on Mar 26, 2024 11:00:00 AM
Stephanie Kim


Items initially categorized as non-inventory can be transformed into inventory items, enabling businesses to efficiently track stock levels. This change may be applicable for items that gain popularity and start to require stock holding.

This conversion process from a non-inventory to an inventory item, will consolidate the records, maintaining the transaction history from before the conversion alongside new inventory data post-conversion.

How to Convert a Non-Inventory Item to Inventory

To convert an item:

    1. Navigate to Lists > Accounting > Items.
    2. Select "View" next to the Non-inventory or Other Charge item you wish to convert.
    3. In the item record, choose "Convert to Inventory". If using Serialized Inventory or Lot Tracking, select the appropriate conversion option from the dropdown menu.
    4. In the Inventory Item page, under the Accounting subtab, assign a Cost of Goods Sold (COGS) account that is different from the previously used expense account. Non-inventory items initially use an expense account for cost association, which is suitable for inventory item cost calculations.
    5. Click "Save".
Important Considerations After Conversion

Note that this conversion is irreversible; inventory items cannot revert to non-inventory status. The item's transactional history will continue to reflect its status at the time of each transaction, including partially processed sales orders that remain open. 

If a transaction is modified to remove and then re-add the item after conversion, it will be treated as an inventory item.

The transaction history of the item, reflecting its past as a non-inventory item and present as an inventory item, is accessible under the History subtab of the item record.


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