Fix QuickBooks Error Code H202 When Switching to Multi-User Mode

Highlights (Key Facts & Solutions)

• Error Definition: QuickBooks Error H202 is a failure to connect to the server hosting the company file in multi-user mode, indicating the network path is blocked.
• Primary Fix (Automated): Run the QuickBooks Database Server Manager (found in the QuickBooks Tool Hub). This tool automatically scans folders, sets firewall exceptions, and repairs network permissions.
• Essential Service Check (Manual): Ensure that the two critical multi-user services, QuickBooksDBXX and QBCFMonitorService, are running and set to Automatic startup type on the server computer.
• Hosting Configuration: Hosting must be ON only on the server and OFF on all workstations. Workstations that incorrectly show “Stop Hosting Multi-User Access” must have hosting disabled.
• Data File Repair: Rename the .ND (Network Data) file and the .TLG (Transaction Log) file in the company file folder. This action forces QuickBooks to create new, clean configuration files upon the next launch.
• Network Diagnostic: If software fixes fail, use the ping [Server Name] command from the workstation to test basic TCP/IP connectivity. A failed ping indicates a core network issue requiring IT support.
• Firewall Ports: Confirm that the specific QuickBooks ports (e.g., 8019 and the dynamic series 553xx) are open in both Windows Firewall and any third-party security software.

Overview

Go through this post to know how to fix QuickBooks Multi User Switching Error H202?
When switching QuickBooks to multi-user mode, users frequently encounter error code H202. This error typically indicates that the connection to the server computer, which stores QuickBooks company files (QBW), is blocked. As a result, you will be unable to access the QuickBooks company file due to this communication issue with the server.

QuickBooks Desktop is accounting software that has evolved with time. Also, users from all over the world have benefited from this program. It is a one-stop solution for all accounting needs for all non-accounting background SME business owners. However, it has lots of bugs, like Error H202.

Error Code H202 displays when you are hosting a company file on a non-Windows Server. Hence, we will discuss how to resolve this error.

What is QuickBooks Error H202 (Multi User Switching Error)?

Error H202 in QuickBooks occurs when users try to open the company file in multi-user mode.  The errors usually pop up during the transition from single-user to multi-user mode, resulting in being unable to access the file placed on the other system. This error comes with the following error message:

Error code: H202 This company file is on another computer, and QuickBooks needs some help connecting. Here’s how to fix this problem: On the computer where the company file is located, open the start menu, then open QuickBooks Database Server Manager. The Database Server Manager will scan your files and restore the connection.

“You are trying to work with a company file that is located on another computer, and this copy of QuickBooks cannot reach the server on that computer. (H202)”

What Causes QuickBooks Error H202?

QuickBooks Error H202 occurs when the software fails to connect to the company file hosted on another computer. This happens due to misconfigured hosting settings, blocked server communication, or inactive QuickBooks services. DNS issues or damaged network data files can also disrupt access. As a result, users experience delays, file loading failures, or complete disconnection from multi-user mode. These are the factors responsible for QuickBooks H202 Error.

1. Incorrect hosting configuration settings.
2. Damaged Network Data files.
3. Improper DNS settings.
4. QBCF and QuickBooksDBXX are components of QuickBooks that have not started yet.
5. The company file is not connected to the server.
6. Firewall/ other security software is blocking communication of company files with the server.
7. QuickBooks cannot search the main IP address of the host system. There is an issue with the DNS server.
8. Settings in the QuickBooks File are not in favour of accessing the company file.

Symptoms of QuickBooks Error Code H202

The following list consists of all the probable indications for Multi-user switching error H202 in QuickBooks.

1. The user cannot switch to multi-user mode.
2. An error message pops up on the screen.
3. The application is working slowly, freezing, and not responding on time.
4. Your device is getting slow.
5. Users cannot access the company file located on different computers.
6. QuickBooks Error Code H202 message is frequently showing on the screen.

Fixing Error H202 in QuickBooks

Below we have shared the most effective methods to resolve Error H202. Due to these methods, you will easily fix the issues in your application.

Method 1: Using QuickBooks Database Server Manager

To use the Tool Hub, the user has to close the application first. Hence, follow these steps:

Step 1: Close QuickBooks. After that, download and install the latest QuickBooks Tool Hub. If you already have Tool Hub in your system, then go to the Home tab, and check its version.

Step 2: Once the installation is complete, open the Tool Hub application.

Step 3: After that, go to the Network Issues tab, and select QuickBooks Database Server Manager.

Step 4: In the Database Server Manager, the user has two options to choose from. If they see the company file folder(s) in it, then they must select the start scan option. However, if there isn’t any such item available, they have to choose to browse to locate the company file, and then select the start scan option.

Step 5: This process will change firewall permissions. Close the application.

Step 6: At last, open QuickBooks on all workstations with QuickBooks Error Code H202. After that, go to file–> Switch to Multi-user Mode.

Step 7: Finally, if this method doesn’t resolve QuickBooks Error H202, go to the next solution.

Method 2: Verify QuickBooks Services

Note: If using the QuickBooks full version, then turn on the multi-user hosting before doing anything else. For this, go to file–> Utilities–> Host Multi-User Access. DON’T select the stop hosting multi-user access.

Ensure that the QuickBooks services are running on the server system. The same steps apply to check both QuickBooksDBXX and QBCFMonitorService.

Step 1: Go to start–> Type run–> hit Enter services.msc–> Press the enter key.

Step 2: After that, double-click the QuickBooksDBXXlisting. (Replace XX with the version of QuickBooks you are using)

Step 3: For startup type, go to automatic. Verify that the status of service status is on started/ running mode. If there is neither option, then choose to start.

Step 4: Go to recovery tab–> Restart the service from these drop-down menus: First failure, Second failure, Subsequent failures.

Step 5: Save the changes and repeat the process for QBCFMonitorService.

At last, open the application on all workstations. Finally, go to the file menu–> Switch to Multi User Mode. If you don’t see the Error Code H202 again, it denotes that the problem is resolved.

Method 3: On the Server, Add Services To The Windows Admin Group

The following components of QuickBooks need admin permissions on the server computer:

1. QuickBooksDBXX
2. QBCFMonitorService

After you have provided windows access permissions for sharing the QuickBooks company file, open the QuickBooks on the server system and workstations. Hopefully, it will resolve the QuickBooks Error H202.

You May Also Read: Fix QuickBooks Update Error 1328: C:config.msiPT* File Error

Method 4: Configuring Firewall Settings

The firewall in the system can block the data exchange of QuickBooks due to security reasons. Hence, performs these steps to reconfigure the firewall settings for QuickBooks. It will help in the uninterrupted connection between QuickBooks and the server.

Step 1: Go to the settings of the system firewall and make exceptions.

Step 2: Here, change firewall permissions and open the QuickBooks application on all computers.

At last, go to file menu–> switch to multi-user mode.

Method 5: Ping Server From The Workstation

The user has to ping their server from every station that gets QuickBooks Error Code H202.

Step 1: Go to the Start menu on the server and workstations.

Step 2: Type Network and Sharing Center. Press the Enter key.

Step 3: Click Change advanced sharing settings.

Step 4: In the Network Discovery, File, and Printer sharing sections, ensure that the turn-on network discovery option is selected.

After that, get the server’s name by following these steps:

Step 1: On the server computer, go to the start menu–> type run and press enter–> Type CMD–> Press Enter.

Step 2: In the CMD window, type ipconfig/all–> Press Enter.

Step 3: After that, go to the Windows IP Configuration section, and look for the host and server name.

Step 4: Copy the name to a secure place so that you could access it later.

The user needs to get back to the workstation to check the server. Since these steps are complicated, you might need an IT professional.

Step 1: On the workstation, open Windows Start Menu–> Type Run and press Enter.

Step 2: After that, type CMD in the Run Dialogue box and press the Enter Key.

Step 3: Finally, type ping (server name) and press Enter. Brackets are for the sake of understanding, that’s why do not include them while typing the name

Repeat these steps for all workstations facing QuickBooks Error Code H202. Also, if you get a response for every packet without any loss, it indicates that there is no issue with the server.

However, if there is slow response and packet loss, do not proceed further and reach out to an IT expert.

Method 6: Add Server with Windows Host File

Step 1: Firstly, close the QuickBooks Program.

Step 2: Follow this path on the server: C:\Windows\System32\Drivers\Etc or C:\Windows\Syswow64\Drivers\Etc

Step 3: Double-click the host file and select notepad as the program.

Step 4: Enter the IP address of the server after the last IP address. It will be followed by the server’s name. (In the hosts file).

Step 5: Instead of space, use the TAB key to separate the IP address and server name.

Step 6: Choose Save in the File menu and exit the settings.

At last, open company files from multi-user mode. If it doesn’t work, it means that the QBH202 is still unresolved.

Method 7: Rename ND And TLG Files

Step 1: Firstly, close the QuickBooks application.

Step 2: After that, on your server system, open the company file.

Step 3: Look for the Transaction Log files (TLG) related to the QuickBooks file.

Step 4: Rename this file by adding the prefix OLD.

Step 5: Follow the same process with the network data file (ND) and exit the folder.

Step 6: When you open the company file again, it will generate new ND and TLG files on its own.

Step 7: Open the company file while pressing the alt key, until the file opens.

Generally, it resolves Error H202 in QuickBooks and other such errors.

Method 8: Set Hosting for Local Files

The following steps will ensure that the hosting of a company file is not in the hands of any other client’s system.

Step 1: Firstly, open QuickBooks.

Step 2: After that, press F2 and open the Product Information option.

Step 3: Lastly, go to the lower-left corner, and select Hosting. It will show local files only under the local server Information.

Method 9: Launch Windows Control Panel

Step 1:First of all, shut down QuickBooks on all the systems.

Step 2:After that, launch the windows control panel and then click on programs and features.

Step 3:Click QuickBooks and then tap on change and repair from the list of installed programs.

Step 4:And then, you need to allow all the positive options throughout QuickBooks software repair.

Step 5:Once you are done with the process, update QuickBooks to the latest release.

Step 6:Finally, launch the company file for checking if the QuickBooks error H202 repair was successful.

Method 10: Test the Network Connectivity

Step 1: In the system where you see the error code H202, open the ‘Run’ window by pressing the Windows + R keys.  

Step 2: Type “CMD” in the box that appears and click “OK.”  

Step 3: Next, you need to ping your server from your computer.  

Step 4: To do this, type “ping [server name]” and press the Enter key.  

Method 11: Utilize QuickBooks File Doctor

Step 1: Download and install the QuickBooks File Doctor Tool.

Step 2: In the “QuickBooks Tool Hub,” select “Company File Issues.”

Step 3: From the drop-down menu, choose the company file. If you are unable to locate it, click “Browse” to find the file.

Step 4: After the file has been selected, check the box next to your file and click “Continue.”

Step 5: Enter the QuickBooks admin password and then select the “Next” option.

Note: Kindly note that the scan time will depend on the size of the file and may take up to five minutes. Once the scan is complete, you should open the QuickBooks software and your company file.

Method 12: Create a New Folder for the QuickBooks Company File

Step 1: Create a new folder on the server.  

Step 2: Adjust the permissions for this new folder, and then share the QuickBooks company files.  

Step 3: Copy the .qbw file into the new folder.  

Step 4: Open your company file in multi-user mode.

Method 13: Installation of Diagnostic Tool by using QuickBooks

Step 1: Download and install the QuickBooks Install Diagnostic Tool.

Step 2: Run a scan in the location where the data file is stored.

Step 3: Note the number of IP addresses and network interfaces.

Step 4: Open the QuickBooks ports in the firewall settings if there is a tab for open ports.

Step 5: Navigate to the data file connectivity option.

Step 6: Finally, attempt to open the company file and verify that the error has been resolved.

Final Words

We hope this article can assist you to resolve the QuickBooks error code H202. If the above-shown procedures don’t resolve your problems, at once get in contact with our technical error Support at 1-802-778-9005 for help. Also, you can post a forum on our website or chat with our QuickBooks experts. We are available all round the clock to guide you till the issue gets resolved.

FAQs

What is the fundamental difference between QuickBooks Error H202 and H505?

While both errors (part of the H-series: H101, H202, H303, H505) prevent switching to multi-user mode, they point to slightly different communication failures:

• Error H202: This is the most common error and means the QuickBooks workstation cannot find the server computer hosting the company file. The network path is blocked.
  • Primary Causes: Firewall/antivirus blockage, QuickBooks services are not running, or incorrect DNS/IP settings.
• Error H505: This error is specific and often indicates that the server’s multi-user service is attempting to run with an issue, frequently related to an outdated or incorrect QuickBooks Database Server Manager (DBM) port configuration or the DBM not running correctly.

Why is the QuickBooks Database Server Manager (QBDM) the first recommended fix for Error H202?

The QuickBooks Database Server Manager is recommended first because it is the official, all-in-one utility that automatically addresses the most frequent causes of the H202 error.

The QBDM performs these critical functions:

• Firewall Configuration: It automatically scans the network and attempts to set the necessary Windows Firewall exceptions for QuickBooks, allowing inbound and outbound communication on the required ports (e.g., 8019, and the dynamic ports like 55378–55382 for newer versions).
• Permissions Check: It scans the company file folder to ensure the correct network and Windows access permissions are established for the QuickBooks data service user (QBDataServiceUserXX).
• Service Integrity: It ensures the essential multi-user services (QuickBooksDBXX and QBCFMonitorService) are installed and registered correctly.

How do I verify that the correct QuickBooks services are running on the server?

The proper multi-user access requires two core services to be actively running on the computer hosting the company file (the server).

The required services are:

• QuickBooksDBXX: The main database service for the corresponding QuickBooks year (e.g., QuickBooksDB34 for QuickBooks 2024).
• QBCFMonitorService: The QuickBooks Company File Monitor Service, which listens for requests from workstations.

To verify their status:

• On the server, open the Run window (Windows key + R) and type services.msc.
• Locate both services in the list.
• Confirm the Startup Type is set to Automatic.
• Confirm the Status is set to Running or Started.
• For best practice, double-click each service, go to the Recovery tab, and set the options for First, Second, and Subsequent failures to Restart the Service.

What is the purpose of renaming the .ND and .TLG files when troubleshooting this error?

Renaming these files is a method to eliminate configuration corruption without losing data, forcing QuickBooks to rebuild clean network parameters.

• .ND (Network Data) File: This is a configuration file that stores critical information about the QuickBooks hosting configuration and which system is the Database Server. If this file is corrupted or misconfigured, the workstation cannot read the path, causing H202. Renaming it (e.g., to CompanyFile.qbw.ND.OLD) forces the Database Server Manager to create a fresh, correct version.
• .TLG (Transaction Log) File: This file tracks all changes and transactions since the last verified backup and is essential for data recovery. While not the direct cause of H202, a corrupted or excessively large TLG file can sometimes interfere with network data access.

Why should I use the ping command, and what does a failed ping response indicate?

You should use the ping command as a definitive network diagnostic tool when software-based fixes (like the Database Server Manager) fail. It determines if the workstation can communicate with the server at the most basic network level (TCP/IP).

• Successful Ping (Reply): This confirms the physical network connection is stable (cable, router, basic IP address routing is functional). The problem is definitely a software-level issue (Firewall, QuickBooks services, or permissions).
• Failed Ping (Request Timed Out / Packet Loss): This is a critical indicator that the issue is external to QuickBooks. The workstation cannot locate the server on the network.
  • Causes: Disconnected network cable, incorrect server IP/DNS, Network Discovery is disabled, or a severe, non-QuickBooks firewall is blocking all traffic.

How do I ensure I am not accidentally hosting the company file on a workstation instead of the server?

QuickBooks multi-user mode requires that hosting be ON only on the server computer where the file resides, and OFF on all workstations. Incorrect hosting settings on a workstation are a frequent cause of H202.

To verify and correct hosting:

• On the Workstation: Open QuickBooks, go to File, then hover over Utilities. The option you should see is Host Multi-User Access. If you see Stop Hosting Multi-User Access, select it immediately to turn hosting OFF.
• On the Server: Open QuickBooks, go to File, then hover over Utilities. You must see the option Stop Hosting Multi-User Access. This confirms that hosting is correctly ON.

Does the age or version of my QuickBooks software increase the likelihood of getting Error H202?

Yes, older versions of QuickBooks Desktop can be more susceptible to network errors like H202 due to compatibility issues with newer Windows Server versions or stricter firewall rules.

Reasons why version matters:

• Port Changes: The default firewall ports QuickBooks uses (e.g., 567xx) change with each major version. Older versions may not register correctly with modern Windows Firewalls, requiring complex manual configuration.
• Service Compatibility: Newer Windows Server operating systems (like Windows Server 2022) have stricter security protocols that may not fully recognize or grant permissions to the older QuickBooksDBXX service components, leading to multi-user failure.
• Tool Hub Access: Only the latest versions of the QuickBooks Tool Hub contain the most recent diagnostic and repair tools, which are essential for automatically fixing H202.

Disclaimer: The information outlined above for “Fix QuickBooks Error Code H202 When Switching to Multi-User Mode” is applicable to all supported versions, including QuickBooks Desktop Pro, Premier, Accountant, and Enterprise. It is designed to work with operating systems such as Windows 7, 10, and 11, as well as macOS.