QuickBooks Condense Repair Tool – How to Use

Published by John Smith at March 19, 2019

QuickBooks Condense Repair Tool

QuickBooks Condense feature is an integral part of QuickBooks Desktop 2019 and provides you an option to delete the QuickBooks Audit Trail. This process will minimize the file size while keeping the detailed transactions untouched. This feature is not present in the traditional File Condense Feature. In case you have an oversized file that is taking a lot of space then you can use the Condense Repair Tool to lessen the File size without any damage done. QuickBooks Condense Feature in the new version works faster than the previous ones. If you want to access the feature then perform the below steps:

First, Go to File
Then tap on
Press on the ‘Condense Data’ option
Now there will be a question asking – How do you want to Condense the Company file. Choose the first option here.
Click ‘NEXT’ and you will see a message saying ‘Working on the file.’ Once you complete this, then you will see a window telling you the entire reduction of the File size and backup location before File Optimization.

Need technical Assistance – Dial QuickBooks Support phone number 1.877.221.952O

Functions of QuickBooks Condense Repair Tool

QuickBooks Condense Repair is a crucial tool that allows you to Condense the file size. However, you need to be aware of the functions and after-effects it might have on various sections. Below given are guidelines that you need to be mindful of before File Condensing.

a) It is Non-Reversible

Once you condense the Company file, then it cannot be reversed. You need to be convinced that you want to delete this file and then only perform the process. Look at the relevant points to use the Condense Feature.

A huge Data File
Upgraded your Hardware
Closing a List Limit
The accounts team and the technical support has recommended it as a necessary option after all evaluations.

b) Might not work in a few cases

If you deal in Inventory items, then the Condense feature does not work. Therefore, very few transactions get condensed with very few changes in the file size. Moreover, Open transactions do not get condensed without any effect on the file size.

c) Might not Fix the File Damage

When you are looking are using the Condense Utility to repair a damaged Company file, then the Condense feature might not repair the ‘Damaged Company File’. You need to use methods such as ‘Restore Backup Company file’ or Make a new file to correct the damage. Please note the Condense feature in QuickBooks doesn’t remove the below-listed transactions.

The Payroll Transactions – It will not condense the Payroll Transactions dated before 31 Dec, or the Employees’ W2 is not analyzed and reviewed.
The Invoice, Refund Checks, Payments, Credit Memos – You need to link these items properly, otherwise, they won’t be removed.
Payments recorded to Undeposited Funds – These are the ones that do not get deposited to Bank Account.
Bill Credits, Bill Payment Checks, Bills – These documents will also be not eliminated if not appropriately linked to each other.
Estimates connected to Invoices – The estimates can’ t be condensed to Journal Entries.
Sales Tax not paid via ‘Pay Sales Tax’ – Paying Sales Tax with checks keeps the invoices open. The invoices are Non-Condensable.
Transactions connected to a Non-Condensable Transaction – The transaction linked to a Non-Condensable transaction is also Non-condensable, so you cannot condense these.

d) Affect on some specific reports

The Condense feature has a different effect on different reports. Let’s see how?

1. The Account-Based and the Item Based report will be correct and accurate as the entries on the Account do not get affected.

The Profit and Loss (Accrual)
Balance Sheet (Accrual)
Trial Balance (Accrual)
The Cash Flow Statement (Accrual)

However, the below Item Based Reports will be Blank as all item Data will be gone.

The Sales and Purchase Reports
Job Costing Reports
A/R and A/P aging reports.

2. All Cash Basis Reports

The reports will be inaccurate

3. The reports that are Filtered by Class

The transactions that have been summarized by the utility will not have the classes assigned. If you will RUN a Profit & Loss Report by the class that will reflect all amounts in the ‘Unclassified Column.’

4. The Sales tax Liability Report

While condensing a journal entry, there is an amount credited to the Income account. If QuickBooks does not knows which portion of the income is taxable and what is non-taxable. Additionally, tax collected from the invoices and does not exists any longer will show a ‘zero balance’.

5. The A/R collections Report

This report shows the ‘Condensed Journal Entries’ in the ‘No Name’ section. Secondly, the entries to the Accounts Receivable are not linked to ‘Closing Transactions’ and will appear as Open.

6. The Sales and Purchase Detail Report

This report will also be blank, and there will be no more invoices & bills.

7. Audit Trail Report

All the transactions get eliminated when you RUN the Condense feature. Therefore, you will not see the transactions in the Audit Trail report.

8. Reconciliation

Condensing does affect the Reconciliation process. i.e., You will get a right Opening balance, Checks, and deposits that might lead to incorrect or no reconciliation of reports. Finally, the statement might be incorrect as the last reconciliation has already gone.

Note: The Original reports are preserved and saved in the Backup and Archive Copy or any other back up option that might be there. Prior looking to use the Condense Tool, it is important to reconcile all accounts, then print reconciliations and the discrepancy reports. Save the reports in the PDF format and create a Company File.

Steps to use the QuickBooks Condense Repair Tool

QB Desktop 2018 and earlier versions

Next thing in line is to understand how to utilize the QuickBooks Condense Repair Tool. There are some requirements before and after for performing the ‘Company File Condensing’ process. We will have a detailed and thorough look at the below entries to know the process better.

Look for the Non-condensable transactions
RUN the Report
Prepare the Company File
Save Comparison Reports
Condense QB Desktop Company File
Period Copy Feature
Next Match the Pre & Post Condense Files

a) Look for the Non-Condensable Transactions

For the QB Desktop Premier & Enterprise Solutions, RUN any Report to see which are the transactions that will not be condensed. If you want to see the Non-Condensable transaction, then see the unique link that can bring the transaction to the screen.

b) Run the report

Now RUN the Report and perform the below steps

First Go to File Menu- Choose utilities- Select Condense Data in QuickBooks
In the wizard tool, select ‘transactions before specific date’ and fill in the Correct date.
Now Checkmark the option ‘Create a Report showing which transactions cannot be removed.’ (Optional)
Select ‘Next’ and choose ‘Summarize Inventory Transactions.’
Next, choose how to Condense Inventory and select ‘’
Choose Transaction groups you require to remove and select ‘’
Now Press ‘Begin Condense’ QB will only RUN the report & will not Condense it here.

Note: When you see the report, then analyze it and fix every transaction. E.g., There is an Open invoice blocking the transactions concerned to it. You can shut this and close the transactions that are connected to it.

c) Prepare the Company File

You can perform the below-given steps to make the Company file.

First, eliminate the Data File Closing Date. You cannot Condense Data for any periods that come after the closing date.
1. Go to ‘Edit Menu’ and then select Preferences
2. Select Accounting and then navigate to ‘Company Preferences’ Option
3. Select set/date the Password in the Closing Date area
4. Remove ‘Date’ in the Closing Date Box
5. Press OK

RUN Profit & Loss and the Balance Sheet to view the transactions entered before the Company starting date. If you see the transactions have not modified to a particular date, then it cannot be fixed after condense is complete.
Resort Lists
RUN rebuild and verify data utilities and ensure there is no data damage.
Copy Company File and Back it Up. You can save the copy and then Back it up at a secured.

d) Save the Comparison Report

Once you condense a file, some of the info is gone forever. With the Comparison Reports, you can rest assured that info is there. You can compare these reports with the ones that come out after Condensing. You can print or save the below reports as PDF for future reference.

The Profit and Loss for all the dates (Accrual Based)
Balance Sheets for all dates (Accrual based)
Cash flow Statement
Account receivable and Accounts Payable aging detail for all dates
Any other relevant reports that are recommended by the bookkeeper or the accountant.

e) Condense QB Desktop Company File

To Condense the Company File, you can perform the below steps

Note: Condensing will happen as per the Company File Size and system performance. Shut all other Apps for quick performance. Moreover, you are accessing the Company File through a network; you can RUN the Condense utility on the computer where it is saved.

RUN the tool

Go to File Menu
Select Utilities and navigate to Condense Data
Here you will need to choose from the ‘list of transactions’
The Choices are:
Uncleared Bank & Credit Card Transactions
Transactions marked as ‘To be ’
Invoices & Estimated marked ‘to be sent.’
All Estimates, Sales Orders, Purchase Order, & Pending Invoices
Whole-time & mileage activities
Transactions with unbilled expenses & items
Now begin Condensing

Note: QuickBooks automatically makes a backup & an archive copy before beginning Condensing.

f) A Period copy

A Premier Accountant or QB Enterprise version holder can utilize this feature. The period copy is a ‘condensed version’ of the company file for a specific period.

g) Match Pre and post Condense Files.

Once the Condensing is complete, it is important to match the before and after Condense Data Reports. To do so :

First Run and print the below reports

P&L Report ( Accrual)
Balance Sheet for all the dates (Accrual)
Cash Flow Statement

The Condensed report should be exactly the same as the Pre-condensed report. If you find any discrepancies then:

Find Transactions creating differences
Restore Backup
Repair Damaged transactions and RE-Run Condense Data
Make a new company file, else use the restored one without re-running the restored Condense data.

Thank you for reading the blog. Hopefully, it gave you good insight on QuickBooks Condense Repair Tool. For Technical assistance, Call at QuickBooks Desktop Support Phone Number 1.855.365.6O12.