I'm using Premier 2018 Desktop and recently used the condense utility through 12/31/13. Yesterday I discovered that my Inventory and Retained Earnings accounts are off. Alot. Over $3 million and it's affecting every year, not just the condensed years. So now I've investigated and found that I probably shouldn't have condensed anyway since I use inventory items so my file size probably didn't get any smaller, but I still have this balance problem. Here's my question, is this going to be an ongoing problem or can I make journal entries to fix the balances. OR should I go back to my archived file and re-enter everything that I've done since the day I condensed and never use the condense tool again?
Condensing your company file removes transaction detail and list entries in QuickBooks. Let me help you sort things out to correct your account balance.
You can do an adjustment to correct the balance of your account using the journal entries. However, the assistance of an accountant is a must to help and guide on which account to debit and credit. Your accountant can provide more expert ways of dealing with this situation.
To record journal entry:
From the QuickBooks Company menu, choose Make General Journal Entries.
(Optional) In the Make General Journal Entries window, change the Date field.
The Entry No. should automatically populate. If not, type a number for your journal entries. QuickBooks Desktop will automatically number subsequent journal entries.
Enter the General Journal Entry details.
Enter or select the first account in your transaction. If you are using an A/R (accounts receivable) or A/P (accounts payable) account, the first account in the General Journal transaction should be the AR or AP account.
Enter the debit or credit amount for the account you selected in step a.
(Optional) Type a memo describing the transaction. This memo will appear on reports and will include the General Journal entry.
Enter or select the Customer, Vendor, Employee, or Other name associated with the transaction. This is required if you use A/R or A/P accounts.
(Optional) If you selected an Expense account along with a customer or job, you can make the amount billable to the customer by checking the Billable column.
(Optional) Assign a class to the amount.
Repeat steps 4a through 4e to enter distribution lines until the transaction reaches a zero balance. The total in the Debit column should be equal to the total in the Credit column.
Click Save & Close to save the journal entry and close the window or click Save & New to save the journal entry and create a new one.
I'm leaving you some articles that you may find interesting:
Thanks for the response, but I am an accountant and I know how to do all of those things. The problem is that this shouldn't have happened and I need to know if it's fixable. Each year the inventory balance is off a different amount so it's not only affecting the years I condensed, it's affecting each year after that.