Item List

Managing Items, Deposits, and Inventory in QuickBooks Online

QuickBooks Online offers flexible tools to help you organize your products and services, manage income allocation, and handle inventory. Below are solutions to common questions regarding the Products and Services list, deposit workflows, and inventory adjustments.

Reactivating Inactive Items

If an item in your Products and Services list is grayed out and cannot be reactivated, it is likely a “sub-item” linked to a parent item that is currently inactive. You must reactivate the parent item first before the system allows you to make the sub-item active again.

To reactivate items:

1. Go to the Settings (Gear icon) and select All Lists.
2. Choose Products and Services.
3. Use the Filter (gear icon inside the list) to check Inactive.
4. Locate the parent item, select the Make active toggle, then repeat for the sub-item.

Allocating Invoice Items to Different Income Accounts

When you create an invoice, the income is allocated based on the account assigned to the specific product or service item. If you need to change which income account an item posts to, you must edit the item setup.

1. Select the Settings (Gear icon) and choose Products and Services.
2. Find the item you wish to change.
3. Select Edit from the Action column.
4. In the edit window, look for the Income account field.
5. Change the account to the desired revenue category and select Save and close.

Printing Deposit Slips with Multiple Revenue Accounts

If you receive a customer check that needs to be split across two different revenue accounts, you should not split the deposit directly on the deposit slip. Instead, allocate the income at the transaction level using Undeposited Funds.

1. Create a Sales Receipt or Invoice containing multiple line items.
2. Assign each line item to the specific product/service linked to the correct Income Account.
3. When receiving payment, ensure it is deposited to the Undeposited Funds account.
4. Go to + New > Bank Deposit.
5. Select the payment from the Undeposited Funds list. The deposit slip will show the single check total, while your income reports will correctly reflect the split between the two revenue accounts.

Troubleshooting Item List Errors

Duplicate Item Names

If you receive an error stating an item with the same name already exists when trying to edit or create an item, you may have a duplicate in your list. Use the search bar within the Products and Services window to filter for the name. If you find duplicates, rename or merge them to resolve the conflict.

Inventory Adjustment Shows No Value

If you are trying to perform an inventory adjustment but the values appear blank or incorrect, there may be a list sorting issue. While QuickBooks Online does not have a manual “Resort List” button like the desktop version, refreshing the page or clearing your browser cache often resolves display glitches. If the issue persists, ensure your items have a cost and initial quantity defined in their setup.

Handling IRS Levies and Payroll Liabilities

If the IRS seizes funds for payroll liabilities, do not simply delete the liability or adjust the payroll data. It is best practice to use the Pay Liabilities function to move the balance from the regular Payroll Liability account to a separate “Liability Settlement” account. From there, you can record the payment to the IRS. Note that any penalties or interest associated with the settlement should be recorded as separate Expenses, not as part of the original liability amount.

Managing List Limits and Inventory

QuickBooks Online is designed to track inventory you actively stock for sale, rather than serving as a full product catalog. If you are approaching list limits (often indicated by errors around name counts), consider the following:

• Clean up names: Review your customer and vendor lists. If you have many one-time entries (e.g., “Walk-in Customer,” “Gas Station”), consider merging them into generic names to free up space.
• Review inventory: Ensure you are only tracking items that require inventory quantity tracking. Non-inventory items should be set up as “Non-inventory” or “Service” types to reduce list clutter.

If your business volume exceeds the capabilities of your current plan, you may need to evaluate if your data needs require a solution designed for larger lists. Always refer to official Intuit documentation for the most current limits and features.