I see. What is the reason that I cannot make a customer inactive when there are time entries linked to it?

The time entries are linked so that we can see our profitability on the project. To be clear, we are not billing our customers for the specific labor hours, we just associate labor hours with a project, so the labor expense is reflected on the project profitability.

Is there another way to accomplish these project profitability reports that does not result in having to edit all the time entires later? I understand what you are saying about moving the time entries to a dummy customer, but that will be a tedious process, especially for our volume of customers.