Condense Data

Condense Data

This option does not need to be done every year.  The "condense data" option will reduce the QuickBooks data file size by deleting cleared, completed, and reconciled transactions up to a specific date and replacing them with one journal entry for the month. Any transaction that has not been completed (i.e. an invoice which has not been paid in full, a bill payment which has a partial amount still due on a bill, etc.) will not be condensed.  It is recommended that several years not be condensed to make comparative detail reports easier.  For many QuickBooks files with limited transactions it may not be necessary to use this feature for many years.

The first step is to make sure that all the data has been reviewed to ensure that there are not any small amounts still remaining that need to be corrected. An example would be a customer that short-paid an invoice by a penny. A credit memo was entered to clear the amount due, but the two transactions were not linked together. By not completing this final step, all of the deposit from the receive payment for that invoice will not be condensed, for that reason the receive payments for all of the transaction on that deposit will not be condensed, and therefore, none of the effected invoices will be condensed. It is easy to see how this little penny could be a big problem.

This option was changed with version 2002 and higher.  In the past, the condense option was File > Utilities > Condense data.  Now with 2002 and higher there are two choices, the condense option as was available in the older versions and a new choice, remove all transactions.  The later choice preserves the lists, preferences, and subscriptions in the file but eliminates all the transactions.  On the older versions, the most efficient way to create a new file without any transactions was to export the lists, import them into the new file, set the preferences again, and work with Intuit to transfer the subscriptions to the new file.

QBRA-2003: File > Archive & Condense Data

TIP: In the 2001 and prior versions, it is recommended that from Windows, copy the file as another name prior to condensing. This will make it easier to look at any transaction that has been condensed.  With 2002 and higher an archive copy is created automatically.

TIP: If you see that you need to make some corrections, restore the backup, make the corrections, and then follow the condense procedures again. It is recommended that you do not try to condense data in stages or you will have difficulty in restoring the backup to see all the detail should you ever need it.

TIP: The data file must be in single user mode to use these options.

TIP: New with 2002 and higher inventory transactions may be condensed.

TRICK: QuickBooks only deleted estimates for jobs that are marked as closed.  QuickBooks only deleted time data if it is marked as billed or not billable or if its job status is closed.  If payroll is based on time, timesheets will only be removed it the employee has been paid.

TRICK: Because the condense option eliminates customer, vendor, item, etc history, the general ledger by month will remain unchanged, but detail reports will no longer be available.

More information on this topic

Year-End Procedures

File Integrity