How to Use QuickBooks Condense Data Utility?

Here’s everything you need to know to start using QuickBooks Condense Repair Tool:

QuickBooks is a modern accounting software that is accepted by business owners all around the globe. The reason behind its huge popularity is nothing but the fact that it is easy to use and its functions are universally applicable. This software primarily caters to small and medium-sized organizations. It allows you to initiate functions such as payroll management, Inventory control, sales control, business management, etc.

Inuit, the company that introduced QuickBooks Desktop is known for providing regular updates and one of the best features that are brought out in recent times is the QuickBooks Condense feature. So, in this article, we will discuss about this condense data utility, how to use it and what the important factors are to keep in mind while using it. So, continue reading the article carefully. Or if you are seeking for expert assistance or professional guidance, then feel free to get in touch with our QuickBooks enterprise support team using our support number i.e., 1-800-761-1787. Our certified accounting professionals will be there to help you in a single call.

What is QuickBooks Condense Repair Tool and Condense Data Utility Feature?

When QuickBooks Desktop 2019 edition came out, one of the biggest factor that were in the highlight was none other than the QuickBooks Condense data utility feature. Not only this tool allowed users to work fluently but also it helped in maintaining accurate transactions seamlessly. With the help of this feature, QB users not only get the option to remove audit trails but also are able to minimize the file size of the company data. This was a revolutionary factor brought by QuickBooks desktop. Unlike prior versions of QB condense, the one introduced in the 2019 edition was not only faster but also compact in terms of usage. However, when it comes to the performance issues, you should opt for condense data utility, when no other option works.

You can easily minimize the file size without even causing any sort of data damage. The QuickBooks condense repair tool feature present in the newer versions is considered slightly better than the previous QuickBooks versions. The newer version has a unique feature that it leaves all the detailed transactions. Previously, the condense utility feature usually removed the transaction details and also created a consolidated journal entry for data before selecting the date. However, you can still go for the previous one having the traditional condense feature, if needed.

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Steps to use the QuickBooks condense repair utility

In order to access the traditional condense feature, you can simply carry out the steps below:

• At first, move to the file menu.
• After that hit a click on the utilities option.
• Followed by clicking on the condense data.

• Decide from the options appearing on the screen.
• In order to access the traditional feature, tick mark the first option.

• After that, hit next and a prompt saying “working on the file” will appear. After the process completes, a window stating the total reduction and location of the backup before the file optimization will open up on the screen.

What are the errors that QuickBooks condense data utility tool fixes?

Before we jump into the understanding of how to use QuickBooks Condense Data Utility Tool, here are some of the error codes that a user might experience:

• Transactions of the server will get on hold and funds will not be deposited.
• QuickBooks Condense might freeze while minimizing the file size.
• Transactions that are held up in the form of Funds might not get deposited in the process.

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So, these are some of the issues that you might have to face when you are trying to use QuickBooks Condense Data Utility Tool.

Facts related to QuickBooks Condense Repair Tool

You are supposed to check if the condense repair tool is ideal for the company or not, as condensing can’t be undone. Thus, it is very essential for you to first try out all possible solutions and then move to condensing. Keeping all these facts in mind, we have jotted down a complete list of functionalities and facts related to QuickBooks condense repair tool, which will help in knowing more about the tool:

Irreversible nature:

One of the biggest fact about condensing is that it can’t be reversed once done, which makes it important for you to think twice before opting for this process. Once a company file is condensed, it can’t get back to normal condition. Thus, you are supposed to ensure that the file needs to be deleted or not. You can opt for condensing only in the below mentioned situations:

• When a large data file is troubling you.
• Or you have upgraded all the hardware.
• You should opt for condensing only when you are close to a list limit.
• In case the accountant and technical support has agreed on using the condense repair tool i.e. an emergency situation, go for condensing.

Another situation when one should opt for QuickBooks condense repair tool is when all other options failed.

Condense repair tool doesn’t remove certain transactions:

There are certain transactions that remain intact even after using the condense repair tool. The table below will help you in understanding this in a better way.

Transaction	Description/Reason
Payroll transactions	In case the Condense date is prior to 12/31 or if an employee’s W2 is not reviewed.
Invoices, payments, credit memos, and refund checks	If it’s not linked to each other in a proper manner.
Payments recorded to Undeposited Funds	The ones that are not deposited to a bank account.
Bills, bill credits, and bill payment checks	If not appropriately linked to each other.
Estimates linked to invoices	Estimates are non-posting entries and cannot be Condensed into journal entries which are posting transactions.
Sales tax not paid in Pay Sales Tax	Paying sales tax with checks leaves invoices open which are non-Condensable.
Transactions linked to a non-Condensable transaction	Example: You entered an invoice on 12/15/2015 and the corresponding payment on 1/15/2016, then ran the Condense Data utility through 12/31/2015. Both transactions will not be Condensed because the payment is outside the period and the invoice is linked to a transaction that was not covered during the Condense.

Might not lay an impact on the size of the company file:

In majority of the cases, the condense feature reduces the size as it removes the transaction details and the list entries. However, in case of the inventory items, the list remains the same. And very less transactions are condensed, which do not impact the file size at large. Also, the open transactions are not condensed, which means no impact to the file size.

File damage might not be fixed:

It should be noted that if the company file is damaged, you should first resolve the data damage, as the QuickBooks condense data utility won’t fix the error. You can either restore the backup of the company file or can create a completely new company file.

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Might affect various reports:

The condense data utility might leave some effects, when it comes to specific reports. The reports that we will mention below will be affected for the condense period only:

Account- based and item-based reports:

The account based reports are expected to be accurate as the entries on the accounts remain unaffected. The account based reports are as follows:

• Profit & Loss (accrual)
• Balance Sheet (accrual)
• Statement of Cash Flows (accrual)
• Trial Balance (accrual)

However, the items based reports are expected to be blank as the item data will be deleted by this feature. The item based reports include:

• Sales and Purchase reports
• Job Costing reports
• A/R and A/P Aging reports

All Cash Basis reports:

It should be noted that the cash basis reports will be inaccurate for the condense period. You will not be able to see any links from cash in to income or from cash out to expenses.

For example: If you entered an invoice on February 1 and the payment on March 1, the histories will indicate that you are linked. QuickBooks will involved the invoice in cash basis income for March 1. After that user runs the condense data, the income will be condensed into the February 1 journal entry and the cash will be condensed into the March 1 journal Entry. Also, the invoice and the payment will no exist. QuickBooks will not recognize that the invoice for February 1 was paid on March 1 or that the invoice and payment existed earlier. Just like that, on the A/P side, bills and bill payment checks will no longer exist and then expenses also will not remain linked to the cash payments. Thus, QuickBooks will not be aware when to show the cash basis expenses.

Reports filtered by Class:

It should be noted that any transactions summarized by the utility will not be assigned any class. Also, running a profit and loss by class report will show all amounts in the unclassified column. You will not find any sales tax liability report invoices with sales tax. A condensed journal entry will have the amount credited to income accounts, but the QuickBooks accounting software will have no way to know what part of the income is supposed to be taxable or non-taxable. Also, the tax collected comes from the invoices, which no longer exist, which means that it would show zero.

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Sales and Purchase Detail Reports:

The sales and purchase detail reports draw their data from items or invoices and bills. There will be no more items and the reports will be blank, as there are no more invoices and bills.

Sales Tax Liability Report

Kindly note that Invoices with sales tax no longer exist. Moreover, a condensed journal entry has an amount credited to income accounts, but QuickBooks has no way of knowing which part of the income is taxable and which part is non-taxable. Along with that, the tax collected comes from the invoices, which no longer exist, which will show zero.

A/R Collections Report:

This report will show the Condensed journal entries under the head NO NAME. The journal entries will have entries to A/R that aren’t linked to closing transactions and are considered as open. Also, the total will be zero as all the invoices in the trivial file are paid.

The A/R aging reports will not show the condensed journal entries as they consists of a default filter of Names = All Customer: Jobs. You will have to remove the filter and the A/R Aging reports will show the condensed journal entries.

Audit Trail Report:

As the condense removes the transactions from the company file, the transactions will be removed from the audit trail report.

Reconciliation:

It should be noted that the opening balance for the next reconciliation will be appropriate as the condensed journal entries are cleared transactions. The checks and deposits will no longer appear and the reconciliation reports might be incorrect or might disappear. The statement date may also be wrong, as the last reconciliation might also disappear.

Preserving Reports:

You should keep in mind that the original reports are preserved in the backup and the archive copy, and in any other backups that you create. Before running the condense, you should reconcile all the accounts and also print the reconciliation. To check the company performance compared to the previous year, you should check out the things below:

• You are supposed to export the current date from the company file.
• Open the archive copy and export historical data.
• Combine the historical data and current data in any other program.

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Steps to Use the QuickBooks Condense Data Utility

As we now have a decent understanding of what QuickBooks Condense Repair Tool is, let us move further and understand the procedure of using it in the best manner. Following this method will ensure that you will not have to suffer any sort of data loss and also the files that you are converting will be safe from any data breach. It will not only save a lot of space of the Hard drive but also will make loading up the files on QB quicker:

Step 1: Spot for non-condensable transactions

You are supposed to begin searching for the files that are non condensable. For which you are supposed to run any report and then look for the transactions that will not be condensed.

Running the report

• Under this process, you need to start with a click on Files on the QuickBooks desktop then choose Utility option and follow it by clicking on the Condense Data Command.

• After that select the Transactions Option which is located before the specific date radio button.
• Moving ahead, hit a click on Remove Transactions before the date required, once done, click on Next once you are done sorting the transactions that you want to keep in QB Desktop.

• Here, a window will come up where you will have to specify the method of condensing a transaction which is followed by simply clicking on Next button.
• Now you will have to choose All the transaction which are supposed to be removed from the system, click Next to move to further steps.

• Also you will have to specify any list cleanup that is supposed to be occurring, once done, click on Next button.
• Once all the above mentioned is completed, the software itself will ask you as to whether you want to confirm the Condensing and Archiving operation.
• Lastly hit a click on Start Condense and follow it by Backing up procedure on the data file as per the instructions on the screen.

Step 2: Preparing the company file

• First of all, begin with eliminating the data file closing date.
  • Next step is to move to the edit menu and then click on preferences option.
  • Select accounting option and then move to the company preferences option.
  • Fill in the date in the closing date section.
  • Remove date from the closing date box and then hit OK button.
• Now run profit and loss, and balance sheet.
• Also re-sorts the lists and Run rebuild and verify the data utility file and ensure that there is no data damage.
• At last, copy the company file and create a backup.

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Step 3: Saving the comparison reports

Condensing might result in deleting some files. Ensure to save a copy of all the reports as PDF, such as

• Accrual based Profit and Loss for all dates
• Accrual based Balance sheet for all dates
• Cash Flow Statement
• Account payable and Account Receivables
• Other essential books required by the accountant

Step 4: Condensing QuickBooks desktop company files

Condensing your company file may take some time which depends on the size of the file and the system performance. It is recommended to not run other applications while Condensing for it to be quicker.

If you’re accessing the company file through a network, run the Condense Data utility on the computer where it is stored. If it is on a server, copy the file on a workstation before Condensing.

Steps to run the condense data utility:

• You need to go to the File menu and then choose Utilities.
• And further, select the Condense Data option.

• Now go through the wizard and choose the options you need.
• Heading forward, you need to choose Help in case you required any assistance.
• Then you have to choose Start Condense option here.

Note: We recommend you to create a backup and an archive copy before starting the condensing.

Transactions	Unused List Entries
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 ALL Time and Mileage activities Transactions containing unbilled expenses and items	Accounts Customers and Jobs Vendors Other Names Items “Done” To Do Notes Classes

Following all the above-mentioned instructions will make condensing a file in QuickBooks with QuickBooks Condense Repair Tool a lot easier. This particular feature is extremely productive as not only it helps in decreasing the usage of data storage but also the size of files being low, it makes the task of opening them a lot easier.

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What are the Transactions that are free from condensing?

Here are some of the transactions which are completely free from the usage method of the QuickBooks Condense Repair Tool:

• All the Payments that are recorded under the basis of Undeposited funds.
• Payroll transactions of an employee whose account is not checked by an employee’s W2.
• Estimates of Invoices that are created by the admin access users.

Period Copy

Period copy is basically a condensed version of the company file that contains the data for a specific period. In order to create a copy, the steps below can work:

• The first step is to move to file menu and then choose utilities and also the condense data.
• Now on the what transactions do you want to remove? window, you need to select the transactions outside of a data range.
• Set the correct dates for the remove transactions before and after filter.
• Move through the wizard and then choose the options required. Select help tab if required for any assistance.

It should be noted that the transactions and list entries that will be removed when a period copy is created is the same as the ordinary condensed file.

The Journal Entries

The QuickBooks accounting software combines multiple transactions into journal entries dated in context to the last day of the month. The condensed journal entries have no source data as there is no account present on the first line of the entry. It should be noted that you cannot edit or delete the condensed journal entries.

Checking for discrepancies

• You can rerun and print these reports:
  • Accrual based profit & loss for all dates
  • Accrual based balance sheet for all dates
  • Statement of cash flows
• After that compare them to the report saved before running the condense data utility. The reports should be identical to the pre-condensed data reports as they are accrual-based summary reports. In case you spot any discrepancies:
  • You need to note the transactions causing the differences.
  • And then restore the backup.
  • Next step is to carry out the following steps:
    • Repair the damaged transactions and re-run condense data.
    • Using the restored company file without rerunning condense data or create a new company file.

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Author’s Words!

So, this is all you, as a QB user, should know about the QuickBooks Condense Repair Tool. In case you face any sort of issue using this tool, you can contact our accounting experts to get QuickBooks technical support. You can simply make a call at our dedicated helpline number i.e. 1-800-761-1787, and get answers to all your queries related to condense data utility. Talking to our team will help you in gaining the best possible information and assistance from experts and certified QuickBooks professionals.

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