Hi Nick,
Export Item # and Category to Excel. Make the changes you want. Create an import template importing just those fields and make sure that the box "Add items" is turned off (to make sure that now new items are inadvertantly created. Run an integrity check to make sure there are no problems. Backup before doing the import. Run an integrity check immediately after.
Imports are often used to make wholesale changes to the database. Use an Excel spreadsheet as updating the categories will be easier. Everybody will need to be out of Inventory and OrderEntry when you do the import. It wants exclusive access to the data files.
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Andrew Bates