Hello, what's the best practice in converting inventory items to non-inventory items (or service item?). I'm working with a client that has softwares which were initially been setup as inventory item. Any issues with using inventory instead of non-inventory? Thanks

You can only do the conversion the other way round?

Need to make all new items records. If the SKU / item name is important, you can re-name the old one then make the new ones.

And if there's inventory balance, I'll being doing inventory adjustments to zero out the quantity and then create a journal entry to reverse the GL impact?

I just did this for a client and @Pete Kastner is correct. Download existing, rename existing , upload as new, zero out quantities on existing, inactivate existing. You will also have to review all open transactions for the old items before dealing with the item quantities and inactivation. On those you will have to complete them or switch out the items.

Thanks @Simon Whittle!, I forgot the existing transactions and making sure they're settled.