Thanks for your prompt response, @Rockies.

Currently, we're unable to change the classification of an inventory item to a non-inventory type by batch in QuickBooks Online.

However, we can change non-inventory and service items by batch to another item type. I know accomplishing this by batch will make it more convenient to change the types of products/services. I'm taking note of this one.

In the meantime, in changing the classification of the inventory type item, you'll have to do it one at a time by making a quantity adjustment to zero it out. I also suggest consulting your accountant in adjusting the inventory items for professional advice. Then make the items inactive and create a new non-inventory to replace it.

I'll add this article as your reference for the detailed steps in changing inventory items to non-inventory type: Change product and service item types in QuickBooks Online. It includes the steps on how to account for the adjusted inventory using a journal entry.

Feel free to add a comment below if you have more questions about managing products and services in QuickBooks. I'm always here to help. Stay safe and well!