What happens to the value of stock when you make an item inactive in QuickBooks

What happens to the value of stock when you make an item inactive in QuickBooks

How make items inactive in QuickBooks?

You being a QuickBooks user, if you detect any technical or possible error in your item list there is a secure process of avoiding mistakes that will happen in the future is by using the incorrect items to make them inactive. When an item is inactive and still can be viewed in reports however, it is not included in any drop-down lists on sales or purchase transactions. Thus if you want to know “What happens to the value of stock when you make an item inactive in QuickBooks”, then lets check out the process here..

Follow the steps to mark an item as inactive in quickbooks:

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  • Go to the menu bar -> Select Lists -> Item List
  • Select the item you want to make inactive -> Click on the selected item
  • Right-click the selected item
  • Select Make Item Inactive
  • If you view a warning message like: the item being part of a group, Click Yes to make the item inactive or click No to cancel your change ( as per your requirement)

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When you make an item inactive in QuickBooks, it does not have any impact on the company’s financials. Nothing happens to the value of stock but making an item inactive hides it from your list of items. Therefore, there is no impact on any values or balances.  If you want to correct your financials, you need to choose one of two options. They are as follows:

  • You have to edit the account assignment on each item that will provide you the option to fix all previous transactions that used this item restrictively. You need to be careful while fixing as it can change prior-period financials. The effect of changing an account assignment on an item is the same as the one discussed in the section “Correcting One-Sided items”.
  • You also have to create a General Journal Entry transaction to reassign the amounts from one account to another. This process is carried out by your accountant.

Before attempting the changes, make a backup of your data and always discuss the method you choose with your accountant.

  • Open the Item List by selecting Lists Item List from the menu bar
  • Select the Include Inactive checkbox
  • Click once to the left of any list item to make the item inactive

If the checkbox is grayed out, you failed to turn out any item inactive. After making the first item inactive, you can select the checkbox.

How we were in detail while answering your query on “What happens to the value of stock when you make an item inactive in QuickBooks”. If you are still in doubt about how to make things work in quickbooks then try our toll free Quickbooks Canada Support number at 1800-940-7442. Even if you are a US resident still you can give us a call and we will resolve your every issue.

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