What happens to existing transactions when you edit the item code in Xero?

When you edit the item code in Xero, existing transactions that include that item are automatically updated. This feature ensures that all relevant past transactions reflect the new item code, maintaining consistency and accuracy across your records. This automatic update helps avoid confusion and prevents the necessity of manually revising each transaction individually.

The rationale behind this design choice in Xero is to streamline accounting processes and enhance user efficiency by ensuring that updates to item details are propagated through the accounting history. Therefore, you won't face issues with transactions referencing old item codes after making an edit, as the system takes care of this for you.