The Condense Data utility stream lines your company data file by condensing closed transactions into summary journal entries and removing unused list elements. The utility can create a journal entry for each month in the selected period. The summary journal entries affect your accounts in exactly the same way as did the detail transactions.
CAUTION: If you are having performance issues, the Condense Data Utility is your last option to try to improve performance.
Be very sure that running the Condense Data utility is your best option and that the time and effort you put into it will be repaid by future cost savings. Please do not run Condense Data just because you can. You need a really good reason to run it.
We cannot predict if the Condense will affect the size of your company file.
If your company file is damaged, or has been damaged, before you condense, Troubleshoot for data damage.
If the Condense makes damage impossible to repair, you have only two options.
Suppose that you ran Condense Data as of 12/31/2013 and it is now 9/30/2014. Your current company file does not have 2013 detail and your Archive Copy does not have 2014 detail. To see how your company is doing this year compared to last year:
Your cash basis reports for the condense period will be inaccurate. There are no links from Cash In to Income or from Cash Out to Expenses. Enter an invoice on February 1st and a payment on March 1st. The histories show they are linked. QuickBooks knows to include the invoice in cash basis income for March 1st. After running Condense Data, the income is condensed into the February nth journal entry and the cash is condensed into the March 3 1st journal entry. The invoice and payment no longer exist and QuickBooks does not know that an invoice for February 1st was paid on March 1st or that the invoice and payment ever existed.
Similarly on the A/AP side, bills and bill payment checks no longer exist and the expenses are no longer linked to cash payments, so QuickBooks cannot know when to show cash basis expenses.
Any transactions summarized by the utility will not have classes assigned. Running a Profit and Loss by Class report will show all amounts in the unclassified column.
Invoices with sales tax no longer exist. A condensed journal entry has an amount credited to income accounts, but QuickBooks has no way of knowing what part of the income is taxable and which part is non-taxable. Also, the Tax Collected comes from the invoices, which no longer exist, so it shows as zero.
These reports draw their data from items on invoices and bills. Since there are no more invoices and bills, there are no more items and the reports are blank.
Your A/R balance is correct, but the A/R Collection Report shows the condensed journal entries under “No Name.” The condensed journal entries have entries to A/R that are not linked to closing transactions and are considered as open. The total below is zero because all of the invoices in this trivial file are paid.
A/R Aging reports do not show the condensed journal entries because they have a default filter of Names = All customer:jobs. Remove this filter and the A/R Aging reports include the condensed journal entries.
Condense Data removes transactions from your company file, and it removes them from the Audit Trail report.
Remember that your original reports are preserved in the back up copy and in the Archive copy that the Condense Data Utility creates, and in any other backups that you create.
Before running the Condense, reconcile all accounts, print all reconciliation and discrepancy reports or save these reports in PDF format, and backup your Company file.
This report is new in QuickBooks Premier 2012 and QuickBooks Enterprise Solutions (QBES) V12. This report shows the logic QuickBooks uses to determine which transactions it will not condense. Each non-condensable transaction has a link with which you can bring the transaction to the screen. You can print the report and work from the print out or you can work from the screen display using the links. For example:
To run the report:
When the report populates, work through it fixing every transaction that you can. When you have fixed as many transactions as you can, skip the next section and continue preparing for the Condense.
Run these reports before running the Condense Data Utility and then compare them with the same reports that you run after running the Condense. Print the reports or save them as PDF's:
When you start Condense Data, QuickBooks makes another backup of your company file. Do not to overwrite previous backups. Use a separate location or a DVD or flash drive and keep this backup secure.
After making the backup, QuickBooks copies your company file and labels it as an “Archive Copy.” The archive copy will always display the words Archive Copy [date archive was created] of [company file name]in the title bar of QuickBooks while the file is open.
Use the Archive Copy to retrieve historical data that is not in your current company file. Be aware that the Archive Copy is a regular QuickBooks company file. You can work in the Archive Copy just like you can work in your real company file. You can enter, edit and delete transactions.
After making the backup and the Archive Copy, QuickBooks begins condensing transactions and reducing your data file size. QuickBooks combines multiple detailed transactions into a few journal entries. The condensed journal entries are always dated on the last day of the month. Since there is no account on the first line of a journal entry. a condensed journal entry has no source data.
Be aware that you cannot edit or delete condensed journal entries.
If your post-Condense Data reports are different from your pre-Condense Data reports, then you will most likely need to restore your back up, fix damage in your company file and try the Condense Data again.
After running the Condense Data utility, much of your detailed data no longer exists. Summary reports are not affected. Detail reports and reconciliation are incomplete or missing because their data is condensed into a few journal entries. All of this data is included in the back up that you made at the beginning of the Condense Data and in the Archive Copy. You may want to keep extra copies of the backup and the archive copy in a safe place like your safety deposit box.
Rerun and print (or save as PDF) these reports:
Compare them, line-by-line to the reports you saved before running Condense Data. Since these are accrual based summary reports, they should be identical to the pre-Condense Data reports. If you find any discrepancies, restore the backup that you made as part of the Condense Data process.
Your options include:
You may want to consult with a QuickBooks Pro Advisor and/or with Intuit Technical Support. They can help you determine which option is best for you and they can help you implement the option you select.
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