What is Inactive inventory in QuickBooks?

Inactive inventory means the users will not able to use specific items for sale and purchase of inventory. If you want to make a specific inventory inactive you will have to follow the mentioned steps:

Steps for Inactive Inventory:

  1. Click on list>item list >now look for specific items which you want to inactive.
  2. Right click on that item and click on make item Inactive.
  3. Now that item will not appear in the list of items.

3 accounts are associated with every inventory item:

  1. Cost of goods sold
  2. Inventory Assets
  3. Income Account

Further Reading