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How to Fix QuickBooks Condense Data Error

QuickBooks Condense Data Error

QuickBooks condense data error is a common system error user face when trying to archive their data file. It takes place when The company file is corrupted or damaged & Quickbooks pops up the error message “QuickBooks encountered a system error when trying to archive your data file. QuickBooks will not condense your data file.”

What is a ‘QuickBooks Condense Data Error’?

While using QuickBooks, we often come across this error- “QuickBooks Condense Data Repair: QuickBooks encountered a system error when trying to archive your data file. QuickBooks will not condense your data file.” This error takes place at times when we are trying to condense our data.

Several other error codes appear on the screen in the same manner:-

  • QuickBooks encountered a system error when trying to archive your data file. QuickBooks will not condense your data file. The Error is- An unspecified error (error 80004005). Please try the operation again.
  • QuickBooks encountered an error and was unable to complete the Condense process. Your company file has been restored to its original state.
  • Unable to run QuickBooks. Clean Up Company Data Utility
  • QuickBooks Condense Freezes
  • Transaction held because this transaction has not been paid
  • Transaction held because the funds have not yet been deposited
  • Transaction held because this transaction is ‘Linked’ to the above outer-level transaction.

Quick Overview of QuickBooks Condense Data Error

Error Code:Condense Data ErrorDeveloper:Intuit Inc.
Error Description:QuickBooks encountered a system error when trying to archive your data file. QuickBooks will not condense your data file.Software:QuickBooks
Symptoms:QuickBooks Desktop won’t respond or work, and the Windows operating system has frozen.Applies to:Windows 10 and 11
Cause:The company file is corrupted or damaged., Or the QuickBooks log file is damaged or corrupted.Solution:Run QuickBooks File Doctor to Repair Company File Damage, The best way to resolve this error is to rename the QBWIN.LOG File

Why Does This Quickbooks Condense Data Error Take Place?

Data errors are the errors that take place when trying to rebuild and verify. By focusing on the reason for the error, we should be able to repair the source transaction. Once the damaged or corrupt file is repaired, we could run Verify and the message displayed will look like this- “QuickBooks detected no problems with your data.” It indicates that the file is clean now.

Any file carrying negative inventory and negative quantity cannot be condensed. To condense a QuickBooks file, we will need to repair the negative inventory first.

The main reason behind the QuickBooks condensed error

  • The company file is corrupted or damaged.
  • Or the QuickBooks log file is damaged or corrupted.
  • If you want to condense your data then, the error takes place.
  • Not enough storage is available for QuickBooks to condense data utility.
  • Opening a company file in another computer network.

Condensed Transactions Have These limitations

  • Payroll transactions are not removed if the condensed date falls into the previous year.
  • In case the employee’s W2 is not reviewed, Payroll Transactions will not be removed.
  • Any invoices, payments, credit memos, and Refund Checks that are not correctly linked to one another.
  • Payment records of Undeposited Funds.
  • Bill Payments, Bills, and Bill Credits that aren’t correctly linked to one another.
  • Estimates that are linked to invoices.
  • If the Sales Tax is not paid in the “Pay sales tax” dialogue box. Please note that if you are paying your Sales Tax by using Checks, then your invoices will be left open. We will need to replace the checks with Sales Tax Payments. Ensure that the details are correct and valid.
  • Any transaction linked to the Non-condensable Transactions will not be removed. Let’s work it out with a simple example: Let’s suppose that we entered an invoice on 15-12-2017 and the payment we made was on 15-01-2018. Now we will run the condense until 31-12-2017. Now the payment falls after the condensing period, therefore, it will not be condensed

A Few Important Points to Consider before Resolving the Errors that show up while Condensing QuickBooks Company File 

A Few Major Tips to ponder before Resolving the Errors that show up while Condensing QuickBooks Company Files:

  • Update QuickBooks Desktop with the most recently delivered updates and attempt to run the condensed data utility indeed. 
  • Ensure you have in any event 10 GB of free plate space accessible before compacting the company file utilizing the condensed data tool. 
  • If the company file is put away, on some other PC in the network then, at that point first duplicate the company file to the neighborhood stockpiling of your PC and later attempt to condense the company file indeed. 
  • Try to make a backup of the company file before gathering the data as the cycle is irreversible and you can’t get a similar unique file back after you run the condense data tool.

The process to Fix QuickBooks Desktop Condense Data Error

There is no valid data available to resolve this issue manually. There are other options where a technical support executive will carry out a process to fix this error. The resolution to this error requires some heavy software and an advanced computer user.

You get valid information regarding the Quickbooks Condense Error above. In case you are not able to understand anything, or you feel like there are things that you need to inquire about, you can get in touch with our technical support team. They are experts in resolving Quickbooks and related product-related problems. They are a third-party agent, who deals with Quickbooks and its errors.

Solution 1: Run QuickBooks File Doctor to Repair Company File Damage

Running the File Doctor Tool helps to fix corruption in the company file. Also, it protects your system from QuickBooks Condense Data Errors. To do so, have a look at the actions listed below;

QuickBooks File Doctor is a useful tool that has provided its users with repairing various types of data and file damage issues.

Follow the below steps to run the QuickBooks file doctor tool:

  • Firstly, you have to close the QuickBooks. 
  • Download the latest variant of the QuickBooks Tool Hub. Save the file someplace you can undoubtedly think of it.  (Point to be Noted: If you’ve installed Tool Hub previously, you can discover which adaptation you have. Select the Home tab. The rendition will be on the base.)
  • Then, you have to open the file that you downloaded QuickBooksToolHub.exe. 
  • Follow the on-screen steps to install and consent to the agreements. 
  • When the installation completes, double-tap the symbol on your Windows desktop to open the tool hub.

Solution 2: Fix Negative Entries in the QuickBooks Company File

To overcome QuickBooks Condense Data Error, you are required to repair negative entries in the QuickBooks Company File. Here’s how;

Steps to correct the negative entry in the QuickBooks company file:

  • Firstly, explore the QuickBooks installation envelope and open the QBWIN.LOG file. 
  • Look down to the extreme base in the file and search for Error and Type of error in the content. 
  • The content in the file will show the exchange and passages that have a negative worth or some other kind of error. 
  • Note down the receipt number and quest for something similar in the company file
  • Roll out the necessary improvements to the worth of the exchange or the passage and save the file. 
  • Attempt to condense the company file indeed and if you get the equivalent to condense data error, follow the following investigating step. 

Solution 3: Rename QBWIN.LOG File

QuickBooks Condense Data Error can be resolved if you rename QBWIN.Log File. Here are some steps you need to follow to rename it;

To rename your QuickBooks.log file, follow these steps:

  • From the QuickBooks Folder in the C Drive right-click the QBWIN.LOG file and select Rename. 
  • Type.OLD toward the finish of the file name and open QuickBooks. 
  • Have a go at consolidating the company file now. 

Solution 4: Start Windows in Safe Mode

You need to start Windows in safe mode if you want to end up with QuickBooks Condense Data Error with ease. Let’s see how;

If all the above methods fail to resolve this error then you need to start Windows in safe mode:

  • Firstly, you need to restart Windows and consistently 
  • Press the F8 key before the boot screen shows up. 
  • Presently from the choices, select Safe Mode and press Enter. 
  • Open QuickBooks and run the Condense Data Utility to check whether the issue is resolved or not.

Solution 5: Use a QuickBooks File Repair Tool

This tool is especially used to fix many common errors. You don’t have to encounter QuickBooks Condense Data Error anymore if you learn how to use the File Repair Tool. Below are the steps you need to perform on your own;

  • Navigate to the File menu, then hover over Utilities and select Rebuild Data.
  • On the QuickBooks Information Window, press OK. 
  • Now, you have to follow the onscreen instructions to save a backup.
  • Let the tool repair your file. It may take some time. 
  • QuickBooks may seem stuck but as long as you move your mouse, the tool starts working.
  • Once the tool finishes, hit the OK tab.
  • After that, go to the File menu, then click Utilities and select Verify Data.
  • Let the tool check your file for data issues.
  • If QuickBooks doesn’t find any problems, tap on OK. you can keep using your company file. You don’t have any data damage.
  • However, if QuickBooks finds an issue with your company file, choose the option Rebuild Now.


  1. Why do QuickBooks condense Data errors?

    Condense helps to create a report based on which you can find the summary of monthly journal entries for the old and closed transactions. These reports help you to view the clear graph and the current working version of the QuickBooks data file.

  2. How long does it take to condense Data in a QB file?

    It usually takes 4 to 16 hours. The time is taken based on the size of your file or the network speed. In any case, if timed out then the QuickBooks condense error will pop up on your screen, you need to start the process again from the beginning.

  3. What condensed data utility create?

    The condensed data utility streamlines the company file which is done by condensing closed transactions to the report of journal entries. Once you are done with this process, then delete all unused elements. The utility option makes a journal entry for every month in the selected period.

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