How to Make an Item Inactive in QuickBooks

by Laura Madeira | May 6, 2013 9:00 am

If you have found errors in your item list, a safe method for avoiding future mistakes by using the incorrect items is to make them inactive. An inactive item still displays in reports, but is not included in any drop-down lists on sales or purchase transactions.

To mark an item as inactive:

1. From the menu bar, select Lists, Item List.
2. Select the item you want to make inactive by clicking it once.
3. Right-click the selected item.
4. Select Make Item Inactive.
5. If a warning message displays (such as the item being part of a group), click Yes to make the item inactive or click No to cancel your change.

Making an item inactive does not have any impact on the company’s financials. If you want to correct your financials, you need to choose one of two options:

• Edit the account assignment on each item. This gives you the option to fix all previous transactions that used this item retroactively. (Use this cautiously because it changes 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” in Chapter 4 of Laura Madeira’s QuickBooks 2013 In Depth[1].
• Create a General Journal Entry transaction to reassign the amounts from one account to another. This method is typically completed by your accountant.

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

Here’s another tip from Laura Madeira’s QuickBooks 2013 In Depth[1]:

Open the Item List by selecting Lists, Item List from the menu bar. Select the Include Inactive checkbox (in the lower center of the dialog box). Click once to the left of any list item to make the item inactive, as shown here:

If the checkbox is grayed out, you have not yet made any item inactive. After making the first item inactive, you can select the checkbox.

Except for inventory items, there are generally no ramifications for marking a list item inactive. Only inventory items with a zero quantity on hand should be made inactive. See Chapter 6 of Laura Madeira’s QuickBooks 2013 In Depth[1], “Managing Inventory,” for more details on handling inventory errors.

From Laura Madeira’s QuickBooks 2013 In Depth[1]

Source URL: http://www.quick-training.info/2013/05/06/how-to-make-an-item-inactive-in-quickbooks/

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