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Stop tracking inventory in QuickBooks Desktop

If you have been tracking Inventory for some time in QuickBooks Desktop and decided to stop tracking inventory, you must do four things before attempting to make the change.

  • Consult with your accountant because there are serious tax repercussions from this change (e.g., you may need IRS permission to make this change).
  • It is recommended to start a new company file, so it is wise to make the change at the beginning of your fiscal year.
  • You must make a back up of your company file before you take any of the steps below.
  • You must have Microsoft Excel to complete this process.
Detailed instructions

Create a new company file and import an edited version of your existing items as Non-Inventory Parts:

  1. Export your item list to IIF.
  2. Open Microsoft Excel and select the option to Open an Excel file.
  3. Change the Type of files drop down in the Open window, and select All files.
  4. Select the IIF file that was exported from the existing company.
  5. Click Next twice and then click Finish when you see the Text Import Wizard.
  6. Make the following changes for each row in the IIF with Inventory Part info:
    1. In column E, change the Item Type from Inventory to Part.
    2. In column I, delete the Inventory Account for each Part.
    3. In columns K & L, clear the values for all of the Parts.
    4. In column T, clear the reorder point for each Part.
    5. In column AB, enter Y for each Part.
    6. Select the Save As option in Excel.
    7. Select Text (tab delimited) in the Save as type drop down.
    8. Add updated.IIF to the end of the existing file name.
    9. Click Save.
    10. Close Excel, click No to any other prompts to save changes to the file. 
  7. Create the New company File:
    1. In the menu bar, select File > New Company.
    2. Follow the wizard to setup the new company file. 
  8. Import the updated.IIF file into the new company file.
  9. Import all other list information into QuickBooks.
  10. Set up the Opening Balances in your new company file
    • Important: Your accountant should provide you with opening balances for non-inventory accounting.
KB ID# HOW13263
4/26/2017 12:51:55 AM
QYPPRDQBKSWS07 9138 Pro 2017 6d3e7e