QuickBooks Condense Data Utility or Condense Repair Tool helps to organize the Company data file. At several instances, when you are trying to archive the data file, you might encounter a system error that hinders QuickBooks from condensing the ‘Data file.’ QuickBooks Condense Repair tool is the troubleshooting device that will solve the issue.
This article will enumerate details about the Condense repair or Condense Data Utility with its significance, usage, functionalities, limitations, etc.
The new condense feature in QuickBooks Desktop 2019 gives an option to remove the audit trail that lessens the file size but keeps the detailed transactions intact unlike the traditional File Condense feature.
If you have an oversized file that is acquiring excessive space, then QuickBooks Condense repair can help to minimize the file size without any data damage. The Condense feature in the new version is also faster than was in the previous ones. To access this feature, follow the below steps:
QuickBooks Condense Repair Tool is important and useful, however, once you Run the tool to Condense a file it has a different result on different sections. You need to be fully aware of all the functionalities and its after-effects to attain the desired result. We will discuss now what effect does ‘Condensing a file’ has and till what context.
If you are looking to condense your company data file, first ensure that ‘Condensing’ is the best Option for you. It is non-reversible once done, so it is highly recommended to try out other options before. Below given are some relevant reasons to use ‘Condense’ feature.
If you use ‘Inventory items’, then your list doesn’t get reduced. As a result, very few transactions may get Condensed with minimal change in the file size. Additionally, open transactions do not get condensed without affecting the File size.
When you are looking to repair a damaged Company File thorough ‘Condense utility’, sometimes, the Condense feature might not repair a ‘damaged Company File.’ Use methods such as Restore a backup company file or Create a new company file to repair the damage. The Condense feature in QuickBooks does not remove the below-listed transactions.
a) Payroll transactions
It will not condense payroll transactions if it is dated before 31 Dec, or an employee’s W2 is not analyzed and reviewed.
b) Invoice, Payments, refund checks, & credit memos
These will also not be removed if not linked properly to each other.
c) Payments recorded to Undeposited Funds
The ones which are not deposited to a Bank Account
d) Bill Credits, Bills, Bill Payment Checks
These documents will not remove if not linked to each other properly.
e) Estimates linked to Invoices
As estimates are non-posting entries & cannot be condensed to journal entries
f) Sales Tax that is not paid in ‘Pay sales Tax’
When you pay sales tax with checks then it leaves invoices open that are ‘Non-condensable.’
g) Transactions linked to a Non-condensable Transaction
If the transaction has linked to a non-condensable transaction that will also be Non-condensable.
The Condense feature affects several reports differently.
a) Account based & Item based report will be entirely accurate as the entries on the account do not get affected.
b) All Cash Basis Reports
These reports will also be inaccurate.
c) Reports filtered by class
The transactions that are summarized by the utility will not have classes assigned. If you will RUN a Profit and Loss report by class that will show all amounts in the ‘Unclassified Column’.
d) Sales tax liability report
When you condense a journal entry, subsequently an amount is credited to the income accounts. However, QuickBooks does not know which part of the income is taxable and which is non-taxable. Moreover, the tax collected that comes from the invoices and no longer exists will show zero.
e) The Accounts Receivable collections report
The A/R collection report reflects ‘Condensed Journal Entries’ under ‘No name.’ Moreover, the entries to A/R which are not linked to the closing transactions are shown as open.
f) Sales & Purchase Detail Report
This report will be blank, as there are no more invoices and bills.
g) Audit Trail Report
The ‘Condense’ feature eliminates transactions from the company file, hence all these transactions will be deleted from the Audit Trail report.
h) The reconciliation
When coming to the reconciliation, you will see the aftereffects of condensing the file, i.e. you will get a correct opening balance for the next reconciliation, checks & deposits no longer exist resulting in incorrect or no reconciliation reports. Lastly, the statement might be incorrect as the last reconciliation has gone.
Note: Always remember that your original reports are preserved and saved in the Backup & Archive Copy, or any other backup option you make. Therefore, before looking to use Condense tool, do reconcile all accounts, print the reconciliations, and the discrepancy reports. You can save these reports in the PDF format, and simultaneously create a Company file.
For QuickBooks Desktop 2018 and previous versions
You are now aware of all the functionalities and after-effects that Condense function will have on the file and other reports. The next thing is to understand, how is to Use the tool. There are pre-requisites, after steps to consider for ‘Condensing the Company File’ process. There is a list below and will discuss these in somewhat detail to better understand the process.
For QuickBooks Desktop Premier & Enterprise Solutions, you can run any ‘Report’ to view which are the transactions that will not get condensed. To recognize the Non-condensable transaction, you can view the unique link with which you can bring the transaction to your screen.
The Next thing is to Run the Report. Follow the below steps
Note: When the report comes up, analyze it and fix every transaction that can be done. For, e.g., An open invoice was blocking the transactions related to it; you can close it and close all other transactions that has attached to it.
To prepare the company file, perform the below steps:
Some information is lost forever, once the file has condensed, The Comparison reports ensure that all your info is intact. You can compare these reports with the reports that come out after condensing. For future use, Print or Save the below things as PDF.
Now we are about to condense the company file. Perform the below steps.
Note: First of all, Condensing will take according to the Company file size and system performance. So, close all other applications for faster working. Secondly, if you are accessing the Company file via a network, then run the ‘Condense data Utility on the computer where it is saved.
| Uncleared (unreconciled) bank and credit card transactions|
Transactions marked “To be printed.”
Invoices and Estimates marked “To be sent”
ALL Estimates, Sales Orders, Purchase Order, and Pending Invoices
Whole Time and Mileage activities
Transactions containing unbilled expenses and items
Customers and Jobs
“Done” To Do notes
Note: Before starting the condensing QuickBooks will automatically create a Backup and an Archive Copy.
You can use this feature if you are a Premier Accountant or a QuickBooks Enterprise Version. The Period copy is actually a ‘Condensed Version’ of the that has data for a certain period.
Once the Condensing Company file is done, ensure that before and after Condense Data reports match each other.
Compare the before and after Condensed reports. They need to be identical. The condensed report should be the same as the pre-condensed one as they are based on ‘Accrual-based’ summary reports. Though, if there are discrepancies then:
That is all about QuickBooks Condense Repair tool, its functionalities, and usage. It is an elaborate topic and requires careful attention at each step. Consider and study all the options before you decide to condense your Company file, as shown earlier it is an irreversible action. If you seek guidance in any of the above steps, then directly speak to a technical expert at QuickBooks Tech Support Number.
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