# Inventory Part vs Non-Inventory Part vs Service Item in QuickBooks Desktop: Which to Use

> Use an Inventory Part for stock you track, a Non-Inventory Part for products you don't, and a Service item for work. How each type behaves.

- URL: https://logistify.ai/guides/quickbooks-desktop/inventory-vs-non-inventory-items/
- Section: QuickBooks Desktop Guides, Inventory
- Applies to: QuickBooks Desktop Enterprise, Premier, Pro, Accountant
- Steps checked against: Intuit's QuickBooks Desktop help articles, updated August 2026
- Updated: 2026-10-20

**Short answer:** In QuickBooks Desktop, use an Inventory Part for stock you track, a Non-Inventory Part for products you don't, and a Service item for work. You pick the type in Lists > Item List > Item > New. A Non-Inventory Part suits a product you buy but don't sell, sell but don't buy, or buy and sell without stocking. Only inventory items carry quantity on hand and value.

## Before you start

- Turn on inventory if you'll track stock: Edit > Preferences > Items & Inventory > Company Preferences, then Inventory and purchase orders are active. Inventory Part isn't available until you do.
- For each product, decide whether you need to know how many you have. That one question settles most choices.
- Look in your Item List before you add anything. Intuit advises against setting up the same item twice.
- Choose the type before the item goes on transactions. Changing it later is limited, and some changes can't be undone.

## The item types compared

| Item type | Use it for | What QuickBooks keeps |
| --- | --- | --- |
| Inventory Part | A product you buy to sell and track as inventory | Quantity on hand, total value and an asset account, plus cost, sales price, COGS and income accounts |
| Non-Inventory Part | A product you buy but don't sell, sell but don't buy, or buy and sell without tracking stock | A price. Purchase and sales details appear only if you select This item is purchased for and sold to a specific customer:job. No quantity or value. |
| Service | Work you do for a customer, charged by the job or by the hour | A rate. Purchase details appear if you select This service is performed by a subcontractor. |
| Other Charge | Shipping charges, markups and other invoice lines that aren't products | An amount or a percentage. Select This is a reimbursable charge for purchase details. |
| Inventory Assembly | A product you build from other items and keep in stock (Premier, Enterprise and Accountant) | A bill of materials, a build point, quantity on hand, value and an asset account |
| Group | Items you buy or sell together but don't track as one item | The items in the group and their quantities |

*Based on Intuit's item type list for QuickBooks Desktop. Subtotal, Discount, Payment and sales tax items also exist for sales forms.*

## Step 1: Pick the type with four questions

1. Do you need to know how many you have? Use Inventory Part, or Inventory Assembly if you build it from components.
2. Is it a product you don't track, such as supplies you use up or a part bought for one job? Use Non-Inventory Part.
3. Is it work you or a subcontractor perform? Use Service.
4. Is it a charge on the invoice that isn't a product, such as freight? Use Other Charge.

Intuit applies the same test to manufacturing components. Track a component's quantity and it's an inventory part. If you can't or don't track it, make it a non-inventory part. Fees you add to each build are other charge items.

## Step 2: Create the item

1. Go to Lists > Item List.
2. Select Item, then New.
3. Choose the type.
4. Enter the Item Name/Number. You can use up to 31 characters.
5. For an Inventory Part, fill in purchase and sales information, then Asset Account, Reorder Point, Quantity on Hand, Total Value and As of.
6. For a Non-Inventory Part, Service or Other Charge, the purchase checkbox is optional. Select it if you buy for a specific job, use a subcontractor or pass the charge on.
7. Save the item.

The inventory fields are covered in [How to add inventory items in QuickBooks Desktop](https://logistify.ai/guides/quickbooks-desktop/enter-inventory-items/). For products you build, see [How to set up a bill of materials and build assemblies](https://logistify.ai/guides/quickbooks-desktop/set-up-bill-of-materials-build-assemblies/).

## Changing an item's type later

- Open the item from Lists > Item List, choose a new Type and select OK.
- Intuit lists inventory (Windows only), non-inventory and other charge items as the types you can change, and the choices are limited.
- Once an item becomes an inventory or service item, you can no longer change its type.
- When you convert a non-inventory or other charge item to inventory, set As of to a date after the item's last transaction. With an earlier date, you have to enter all its sales and purchases up to today.
- If you can't change the type, one option is a new item with the right type. QuickBooks won't delete an item used on any transaction, but you can make the old one inactive.

## Common mix-ups

- Tracking stock with Non-Inventory Parts: QuickBooks keeps no quantity on hand or value for them.
- Bundles: for products you buy or sell together but don't track as one item, use a Group. For a product you assemble and stock, use an Inventory Assembly.
- Discounts on purchase orders: Discount items are for sales forms only. Intuit suggests an Other Charge item with a negative amount on purchase orders and bills.
- Assemblies in Pro: Pro can't create them, but any edition can view and edit assembly items and the transactions that use them.
- Nesting: every item type has a Sub-item of field for grouping items under a parent.

For more on these choices, see [Raw materials vs finished goods](https://logistify.ai/guides/quickbooks-desktop/raw-materials-vs-finished-goods/) and [Group items vs inventory assemblies](https://logistify.ai/guides/quickbooks-desktop/group-items-vs-inventory-assemblies/). In Enterprise, see [How to use item categories in QuickBooks Desktop Enterprise](https://logistify.ai/guides/quickbooks-desktop/item-categories-enterprise/).

## Where QuickBooks Desktop leaves the work to you

- Someone has to choose the type for every product and keep the choice consistent across thousands of SKUs.
- A product set up with the wrong type often can't be fixed in place. Correcting it can mean a new item and a cleanup of its history.
- Non-Inventory Parts give no stock count, so any quantities that matter are tracked outside QuickBooks.
- Item limits apply: Pro and Premier hold up to 14,500 items, active and inactive combined.

## Frequently Asked Questions

### What's the difference between an inventory part and a non-inventory part?

An Inventory Part keeps quantity on hand and a value in an asset account. A Non-Inventory Part has no stock tracking at all.

### When should I use a non-inventory part in QuickBooks Desktop?

For a product you buy but don't sell, sell but don't buy, or buy and sell without stocking it. Intuit also suggests it for components you don't or can't track.

### Can I change a non-inventory item to an inventory item?

Yes, open the item and change its Type. Set As of to a date after its last transaction, and know that you can't change it back.

### Should freight be a service item or an other charge item?

Intuit lists Other Charge for shipping charges, markups and similar invoice lines. Service items are for work you perform.

### Does QuickBooks Desktop Pro have inventory assemblies?

No, assemblies need Premier, Enterprise or Accountant. Any edition can still view and edit assembly items and their transactions.

### How many items can QuickBooks Desktop hold?

Pro and Premier hold up to 14,500 items, active and inactive combined. Intuit's list limits article puts Enterprise above 100,000 items, and up to one million from version 17.0.

## Sources

- [Intuit: Add, edit, and delete items in QuickBooks Desktop](https://quickbooks.intuit.com/learn-support/en-us/help-article/list-management/add-edit-delete-items/L1XvP7YQo_US_en_US)
- [Intuit: Track the products you manufacture](https://quickbooks.intuit.com/learn-support/en-us/help-article/set-inventory-lists/track-products-manufacture/L5pGuMiFO_US_en_US)
- [Intuit: Set up your product's bill of materials](https://quickbooks.intuit.com/learn-support/en-us/help-article/set-inventory-lists/set-products-bill-materials/L3Kao5E9m_US_en_US)
- [Intuit: Maximum number of list entries (list limits in QuickBooks Desktop for Mac)](https://quickbooks.intuit.com/learn-support/en-us/help-article/list-management/maximum-number-list-entries-list-limits-custom/L0q0uTz3u_US_en_US)