Repairing and Condensing QuickBooks Desktop Data File

Published on January 14th, 2022

Kuljeet Singh

When compressing a QuickBooks® Desktop file using the Condense Data utility, I get the following error:

“Condense discovered some errors in your company file and will NOT condense your file at this time.”

I tried rebuilding the QuickBooks data file as suggested by an expert. Running the Rebuild tool doesn’t show any errors. But QB will not condense.

How can I fix the condense error?

The QuickBooks Condense error, or Condense Data error, may prevent you from using the company file (QBW). If rebuild fails, you will need to restore the backup before the data file is condensed. If there is no backup, you will need to repair the company file. But, let’s first talk about the possible reasons behind the condense error.

quickbooks condense error

Why the Condense Operations Fails?

Following are some possible reasons why condensing a QB data file fails:

  • QuickBooks® Desktop application or Condense Data utility is outdated.
  • You are trying to compress a company file stored on another system in the network.
  • Insufficient storage to complete the condense operation.
  • QB file has negative inventory or negative quantity.
  • QB Desktop data file is damaged or corrupted.

Try troubleshooting the condense error using some simple tips before repairing the data file to make it accessible again.

Tips to Troubleshoot the Condense Error

  • Update QuickBooks® Desktop with the latest released updates and run the Condense Data utility once again. Ensure that your QuickBooks® Desktop application is updated. If not, install the latest updates and run the Condense utility again.
  • If the QBW file is stored on another PC, copy the file to the local drive and then compress the file.
  • Ensure you have free disk space up to 10 GB before condensing the company file.

If you’re still experiencing the same issue, try to repair the company file and then condense the file.

How to Repair and Condense QuickBooks Company File?

Following are a few solutions to fix the QB Desktop data file. After completing the repair process, try condensing the data file.

Solution 1 – Use the QuickBooks® File Doctor Tool

Running the File Doctor Tool can help fix corruption in the company file. See Intuit’s article for detailed information on using the File Doctor Tool to resolve your company file issue.

Solution 2 – Repair ‘Negative Inventory’ in the Data File

  • Click the QuickBooks Reports menu, hover over the Inventory option, then click Inventory Valuation Summary.
  • If you find an item with incorrect values, double-click on it to open the item’s Inventory Valuation Detail report. You can see all the transactions for the item listed in order by name.
  • Double-click on the first bill in the list. This opens the ‘Enter Bills’ screen.
  • Change the bill’ date to a date ahead of the first invoice listed on the ‘Inventory Valuation Detail report’ you opened in Step 2.
  • Press the Save & Close button to record the bill with a new date.
  • Repeat Steps 2 till 5 for each item with incorrect entries.

Solution 3 – Use a QuickBooks File Repair Tool

If nothing works, use a QuickBooks® file repair tool like Stellar Repair for QuickBooks® Software to fix the corrupted QB data file. The software is purpose-built to help users repair a corrupt company (QBW) file and backup (QBB) with minimal downtime. It can repair a data file of QuickBooks® 2022 and earlier versions.

Check out the video for detailed instructions on repairing a company file using Stellar Repair for QuickBooks® Software.

To Conclude

When using the Condense Data Utility to shrink the size of a QuickBooks data file, you may encounter errors that prevent you from condensing the file. This blog helps understand the possible reasons why the condensing operation fails. It also explains some useful tips and solutions to fix the issue. If the QB data file remains inaccessible, use Stellar Repair for QuickBooks® Software to regain access to the file with all its data intact.

About The Author


Charanjeet is a Technical Content Writer at Stellar®who specializes in writing about databases, e-mail recovery, and e-mail migration solutions. She loves researching and developing content that helps database administrators, organizations and novices to fix multiple problems related to MS SQL and MySQL databases and Microsoft Exchange. 

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