Thank you for joining the thread, @lorim28.
Let me help and provide insight about the inventory items that merge as non-inventory when switching from QuickBooks Desktop (QBDT) to QuickBooks Online (QBO).
To start, there are limitations when switching companies from QBDT to QBO. Also, when you convert your file from QBDT to QBO, it will recalculate your inventory based on the First-In, First-Out method. However, you're able to easily change the product type from non-inventory to inventory. After changing the product type to inventory in the Product/Service information page, I'd recommend selecting the Choose a Special Category option instead of the Nontaxable one directly. From the said page, you can select the Nontaxable option to update the product type successfully. Let me guide you on how.
- Go to the Gear icon.
- Select Products and services.
- Find the service item you want to change, then select Edit under the Action column.
- Select the Change type hyperlink, then select Inventory item.
- Go to the Sales tax category section, then select the Choose a special category option.
- In the Choose a special category page, go to the Standard categories section, then select Nontaxable.
- Click Done.
- Select the Save and Close button.
However, in case the above steps didn't work, you can import a list of your inventory items to your QBO account. Then, merge them to the duplicate service items to keep your account updated. You can refer to this article for the step-by-step guide: Merge a product or service. It also includes a guide on how to reactivate a produce item.
I'll also add this article to help you keep track of your product and service items in QBO and give you more detailed financial reports to help you complete transactions faster: Product and service items to QuickBooks Online.
I'll always be here, ready to back you up. If you have any further questions about updating your product type or other QBO-related concerns. Please let us know any time in the thread. Keep safe!
