Let me share more details about audit trail, @romad.

When condensing files in QuickBooks Desktop (QBDT), the program creates two process. It creates a permanent copy of the QuickBooks data file (archived copy of file) and makes the data file smaller by summarizing the old closed or detailed transactions.

Here’s what QuickBooks typically does during the process:

• Saves an archive copy of your company files.
• Removes old closed transactions.
• Summarizes old, closed transactions. Condensing typically creates summary monthly journal entries for the old, closed transactions and places these summary transactions in the current, working version of the QuickBooks data file.
• Clears the audit trail. If you clean up a company file and indicate that the company file should be condensed, QuickBooks clears the audit trail before the “removed closed transactions on or before” date.
   

In other words, for the period of time in which QuickBooks removes old, closed transactions, it also removes the audit trail of those transactions.

The condense file process typically means creating a copy of the QuickBooks data file that you save and put away someplace and then creating a scaled-down version of the working company file. The command that you use to condense the QuickBooks company file, however, also allows you to create almost-empty company files.

In addition, it would be best to back up your QBDT company file before performing these actions. This way, we can make sure that you can restore your data file in case you run into trouble.
 

If you have any other questions please let me know. I'm always glad to help any way I can.