Converting Non-Inventory Items to Inventory Items
Items originally set up as a non-inventory type can be converted to inventory items to allow tracking of the item stock.
For example, an item that you sell but do not stock may become more popular over time. Eventually, it may be to your advantage to keep the item in stock.
When you convert a non-inventory item to an inventory item, you keep all records in one place. You keep the transaction history of the item prior to conversion to an inventory item, and all inventory data after the conversion.
If you use the Advanced Inventory Management feature, then order calculations do consider past sales when the item was not an inventory item. This feature and other capabilities such as auto-calculated reorder point and preferred stock level are enabled for a converted item.
You must have Edit permission for Items to see the Convert button and be able to convert items. See Setting Permissions.
To convert a non-inventory item to inventory:
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Go to Lists > Accounting > Items.
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Click View next to a Non-inventory or Other Charge item.
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On the item record, click Convert to Inventory.
With the Serialized Inventory or Lot Tracking features, click the button arrow to choose Convert to Serialized Inventory or Convert to Lot Numbered Inventory.
The Inventory Item page appears.
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On the Accounting subtab, select the Cost of Goods Sold account for the inventory item.
Converted inventory items must use a Cost of Goods Sold (COGS) account that is different from the expense account selected. This is because non-inventory items use an expense account only to associate the cost of buying the item. The account is not used for inventory costing calculations, the way inventory items use them.
NetSuite uses the expense account selected in inventory costing calculations. Therefore, the expense account for the inventory item cannot be identical to the COGS account.
This is effective when you convert any Non-Inventory For Resale items or Non-Inventory For Purchase item.
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Click Save.
Important:After you click Save, the conversion is complete and cannot be undone. You cannot convert inventory items to non-inventory items.
Transactions and Converted Items
After you convert an item record, the state of the item is tracked on a per-transaction basis. Some transactions created before the conversion may remain open and still need to use the item as a non-inventory item.
Transactions created prior to the conversion that used the item as a non-inventory item will continue use it as a non-inventory item. This includes cases like sales orders which may be only partially processed.
In the transaction history of the item, past instances continue to be treated as non-inventory. Line items on these transactions include Non-inventory in the item name to distinguish them.
If you edit a transaction to remove and then re-add the item, the item is then treated as an inventory item.
All transactions created after the conversion that include the item treat the item the same as any regular inventory item.
View the transaction history for an item on the History subtab of the item record.