Does changing product type from service to inventory affect past transactions (e.g. past invoices that contain the product)? Thank you.

Forum|Forum|5 years ago
April 6, 2021
1 reply
6 views

The product is currently listed as "Service", and it doesn't have a cost associated with it. I am worried that when I set the cost of the product (after the type is set to inventory), the past COGS will suddenly go up.

QuickBooks Online

LeithG

Level 2

Hi Dangga

Why wouldn't you just create a new item and avoid the issue? Based on my experience recently of updating an item to a new account link, it won't impact historical transactions since they're already posted on the GL.

dangga00Author

The client has quite a number of existing products so to create new ones will not only take time, but can likely create confusion for all the employees involved as well as sales reporting.

Thanks for sharing the experience, @LeithG Leith, I hope we'll have the same one in that past transactions don't get affected.

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