Inactive Component in a BOM and Work Order- How to Replace?

Once you make an item inactive, that item is still listed in the BOM and Work orders. A feature we have is to replace a component with another component. It is located in the Item List. Check the inactive item, right-click your mouse, and select Replace Component.

If you don't want the inactive component replaced, then you will need to delete the item from the bom and work orders.