It is a common occurrence that when a user upgrades QuickBooks, there are issues due to company file compatibility. The company file doesn’t update itself automatically and the message “This QuickBooks file needs to be updated” is displayed on the screen. A lot of users may get stuck in a cliffhanger and may not know why this error occurred or how will they regain access to the data stored in the company file if they don’t possess the necessary information and the right guidance.
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The aim of this blog is precisely to make the user aware about company file compatibility that will assist him in avoiding errors while upgrading QuickBooks. In addition, we will provide users with important things they must take care to avoid confusion and the various factors that can determine whether their copy of QuickBooks supports the company file or not.
Important Terminologies Related to QuickBooks
There are a few important terms with which you have to get yourself acquainted with before we discuss further:
- QuickBooks Product: It can be QuickBooks Desktop Pro, Enterprise Solutions (ES) or Premier.
- QuickBooks Version: Each QuickBooks product has a version designated by a year. For instance, QuickBooks desktop Pro 2019 is a different version from QuickBooks Desktop Pro 2020.
- QuickBooks Edition: A distinction among the products Enterprise solution or premier based on the various businesses it caters such as Accountant, Manufacturing and wholesale , Professional services, General business, Retail, contractor.
Company File Compatibility When You Upgrade a QuickBooks Product
- Company files belonging to the Premier product can be opened in Pro and vice versa and the data in the file need not be modified.
- A user can upgrade the Premier and Pro company files to Enterprise Solutions but it is not possible to open Enterprise Solution files in Premier or Pro product.
Company File Compatibility When You Upgrade a QuickBooks Version
On upgrading a QuickBooks version m the company file compatibility between the two different QuickBooks version is affected in the following manner-
- If a QuickBooks company file of the QuickBooks Desktop version belongs to a particular region, it cannot be opened in another region. For instance, the US version of QuickBooks will display a message stating “This file was not created with a US version of QuickBooks” if you try to open a file created in Indian version.
- A company file can be upgraded to a newer version in QuickBooks but an upgraded file cannot be opened in an older version. The sole exception is when QuickBooks Desktop accountant is being used by the user.
- QuickBooks prompt the user to upgrade or convert the QuickBooks company file when the company file is opened in a newer version. The newer version generally updates the older company file and updates it.
Company File Compatibility When you Upgrade a QuickBooks Edition
The company file compatibility between different versions of QuickBooks gets affected when there is an upgrade from one QuickBooks edition to another. The file created in one edition opens hassle free on another edition and does not affect the company data as well.
Important things you must remember
- It is essential for users to create a different folder and name it Pre Conversion backup so that overwriting of files can be avoided.
- If the company files are being transferred by the users across different locations or computers, it has to be ensured that both the systems are having the same version of the QuickBooks Software.
- If the user continues to use a previous version of QuickBooks, he/she will have to re-enter the transactions present in the old backup file into a new upgraded file manually. The user may have to take the help of a designated application to Export the transactions or merge the company files.
- The user must reinstall the old version on a separate folder so that the pre- conversion files are restored if he wishes to keep the old version and install a newer version of QuickBooks as well.
On a parting note, we hope that after reading this blog, you have well understood the QuickBooks company file compatibility and got clarity on the difference between various QuickBooks editions, versions and products.
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Frequently Asked Questions (Faqs)
Can I open an Upgraded File if I have the Accountant’s Copy of the Company File?
Yes, You can open an upgraded file in the older version of QuickBooks id you have QuickBooks Desktop Accountant installed on your system.
Can I move my Company File to Another Computer if the other System has a Different Version of QuickBooks?
No, In order to move the company file to another system, both systems must be having the same version of QuickBooks installed on them.
Can I open an Enterprise Solution Company File in Pro or Premier Version of QuickBooks?
No, You cannot open an Enterprise solution company file in Pro or Premier Version of QuickBooks but vice versa is possible.