I believe you will need to make it Active for what you are trying to do.  I don't think you can do anything with a product that has a product status of "Not Usable".

After the issue, don't forget to change the status back to Not usable.

Can you walk me through how to make it active?

You would need to go to the product screen and change the Product Status to "Active".  Once you are done with the Miscellaneous Issue, go back to the product and change the Product Status back to "Not Usable".

how do i get to the product screen? we are currently using Sage ERP X3 and no one is familiar with it here.. smh.. I have been learning on my own or from this forum. So any thing helps. 

version 6

Go to Common Data, Products. Products

thanks it worked, thank you