Absolutely there is a tool for that. And better yet, you probably have it (might need to be installed and turned on). It is called the Professional Services Tools Library, and referred to as PSTL (pronounced “Pistol”). You can install it from the GP installer. After it is installed you can either update item’s numbers or merge 2 items into 1 new item number. This will also update the IV, POP, SOP and other related core GP tables. It will update all the historical transactions. If you have a lot of 3rd party ISV products, you will need to know if it will work with them as well. Some it will work fine and some have additional things you need to do. You will probably want to test it out in a test company if you have to make sure everything works the way it should in your specific environment, as there will be no ‘undo’ button. There are also sql stored procedures that can be run to update in bulk if you have a lot of items to update.
Hope this helps you out!
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