Changing Non-Inventory to Inventory
Don’t do it.
When you change a non-inventory part to inventory QB goes back in history and changes every transaction that used that part. It is as if the part was always an inventory part. And that means that prior years financial reports also change, since this changes inventory asset totals and COGS.
Keep in mind that COGS is handled differently for the two parts, when you bought and sold the non-inventory part the actual cost was expensed (hopefully to COGS) immediately, when it becomes an inventory part the cost to purchase is averaged and that average cost is what is sent to COGS. In addition the cost of an inventory item is held in inventory asset, so your inventory value changes.
I will admit that sometimes is works just fine, but sometimes it doesn’t, and since I don’t know the ins and outs of your transactions, I think it is better to play it safe, since once the change is made - it cannot be undone.
Instead of changing the item, rename it (add the -old suffix to the part name), mark it as being inactive, and then create a new inventory part with the old name and use that item from that day forward.
