QuickBooks Error H202 – Causes and Solutions

QuickBooks Error H202 occurs when QuickBooks Desktop can’t connect to the server computer that hosts the company file. In a multi-user setup, the server stores the company file, while workstations access it over the network.

This error usually appears when you try to switch to multi-user mode or open a file stored on another computer, and QuickBooks can’t reach the server. The message often reads: “This company file is on another computer, and QuickBooks needs some help connecting.”

In this guide, we’ll explain the common causes of Error H202 and walk through step-by-step solutions to fix it.

Causes of QuickBooks Error H202

Error H202 is usually caused by a problem with the connection between a workstation and the server. Common reasons include:

• Network Name Resolution Issues – The workstation can’t locate the server by name, often due to DNS conflicts or missing entries in the hosts file.
• QuickBooks Services Not Running – Required services like QBDBMgrN/QuickBooksDBXX or QBCFMonitorService are stopped on the server.
• Firewall or Security Blocking Connection – If the firewall or antivirus is blocking QuickBooks programs or ports, the workstation can’t reach the server.
• Damaged Configuration Files – Corrupt .ND (Network Descriptor) or .TLG files can prevent QuickBooks from managing multi-user access.
• Incorrect Hosting Configuration – The server may not be set to host the file, or a workstation is mistakenly hosting instead of the server.
• Permission Issues – The QuickBooks Database Server service or the company file folder may lack sufficient Windows permissions.
• Database Server Manager Not Installed/Updated – If the correct version of QuickBooks Database Server Manager isn’t installed or updated on the server, multi-user connections will fail.

Solutions to Fix QuickBooks Error H202 

With these causes in mind, we’ll now go step by step through methods to fix QuickBooks Error H202. Start with Method 1 and work down until the issue is resolved.

Tip: Before troubleshooting, make sure QuickBooks is updated to the latest release on every computer and confirm that your network connection is stable.

Method 1: Use QuickBooks Tool Hub to Automatically Fix H202 

The QuickBooks Tool Hub includes utilities designed to repair network and company file issues. Running the Database Server Manager and File Doctor from Tool Hub is often the fastest way to resolve Error H202.

Step 1: Install QuickBooks Tool Hub

1. Close QuickBooks on all computers.
2. Download the latest QuickBooks Tool Hub setup from Intuit’s website (current version: 1.6.0.8).
3. Run QuickBooksToolHub.exe and follow the prompts to install.
4. Once installed, open Tool Hub from your desktop.

Step 2: Run QuickBooks Database Server Manager

1. In Tool Hub, go to Network Issues.
2. Select QuickBooks Database Server Manager. (Install it if prompted.)
3. In the window, select your company file folder. If it’s not listed, click Browse to locate it.
4. Click Start Scan. The tool will configure firewall settings automatically.
5. When complete, test multi-user access: open QuickBooks on each workstation, then go to File > Switch to Multi-User Mode.

Step 3: Run QuickBooks File Doctor (if needed)

1. In Tool Hub, select Company File Issues.
2. Click Run QuickBooks File Doctor. (It may take a minute to open; you can also search for it in the Start menu.)
   

   

3. Select your company file from the list or browse to locate it.
   

   

4. Choose Check your file and network, then click Continue. 
5. Enter the QuickBooks admin password when prompted and click OK.
   

   

6. Allow the scan to finish, then test multi-user access again from the workstations.

If QuickBooks still shows Error H202 after using Database Server Manager and File Doctor, continue with the manual troubleshooting methods.

Method 2: Verify Hosting and QuickBooks Services on the Server

Error H202 can appear if the server isn’t correctly set to host the company file or if essential QuickBooks services are stopped. This method makes sure hosting is configured properly and the services are running.

Step 1: Check Hosting Settings

• On the server computer (where the company file is stored), open QuickBooks Desktop.
• Go to File > Utilities:
  • If you see Host Multi-User Access, click it to enable hosting.
  • If you see Stop Hosting Multi-User Access, this means hosting is already enabled.
• Each workstation should show Host Multi-User Access (not “Stop Hosting”) in the Utilities menu. Only the server should host the file to prevent conflicts.

Step 2: Ensure QuickBooks Services Are Running

1. On the server, open the Start menu, type services.msc, and press Enter.
2. In the Services window, locate: 
   • QuickBooksDBXX (XX corresponds to your QuickBooks year version; e.g., DB33 for 2023, DB34 for 2024). 
   • QBCFMonitorService. 
3. For each service: 
   • Right-click and set Startup type to Automatic.
   • If the service is not running, click Start.
   • (Recommended) In the Recovery tab, set First, Second, and Subsequent failures to Restart the Service. Click Apply and OK.
   • Repeat these steps for QBCFMonitorService.

Step 3: Test Multi-User Mode

After confirming the services are running, open QuickBooks on each workstation and go to File > Switch to Multi-User Mode. If the company file opens without error, the issue is resolved. If not, continue to the next method. 

Method 3: Check Windows Permissions and Administrator Rights

Step 1: Verify current folder permissions

1. On the server, open File Explorer → right-click the folder that contains your company file → Properties → Security → Advanced.
2. In the Advanced window, find QBDataServiceUserXX (replace XX with your QuickBooks version) → click Edit.
3. Confirm the following permissions are set to Allowed (or check the boxes if missing):
   • Traverse Folder / Execute File
   • List Folder / Read Data
   • Read Attributes
   • Read Extended Attributes
   • Create Files / Write Data
   • Create Folders / Append Data
   • Write Attributes
   • Write Extended Attributes
   • Read Permissions
4. If permissions are incorrect or missing:
   • Go back to the Security tab → Edit → select QBDataServiceUserXX → choose Full Control → click Apply, then OK.
5. Ensure you select the option to apply to subfolders and files so the settings propagate.

Step 2: Adjust permissions on related QuickBooks & Intuit folders

Navigate to these common paths and repeat the same permission checks / full control setting:

• C:\ProgramData\Intuit\Entitlement Client\vX…
• C:\ProgramData\Intuit\QuickBooks XX
• C:\ProgramData\Common Files\Intuit
• C:\Users\Public\Public Documents\Intuit\QuickBooks\Company Files

… and any sample or support folders Intuit lists for your version.

Step 3: Configure folder sharing (Windows network share) 

1. Still in the folder’s Properties → go to the Sharing tab → click Share.
2. In the share dialog, add QBDataServiceUserXX as a user.
3. Set the permission for QBDataServiceUserXX to Full Control.
4. Click Share, then OK to complete the share setup.

Step 4: (If needed) Use Safe Mode for the hidden Security tab

If you’re on a Windows edition (like Home) that does not show the Security tab normally, reboot into Safe Mode and repeat the above steps.

Step 5: Restart QuickBooks services & test

• After adjusting permissions and shares, open Services (services.msc) → restart QuickBooksDBXX and QBCFMonitorService so permissions take effect.
• Then, on a workstation, open QuickBooks → go to File > Switch to Multi-User Mode and test if the company file opens without H202 error.

Method 4: Configure Firewall and Security Settings on the Server

Windows Firewall or third-party security software often blocks QuickBooks connections, leading to Error H202. To fix this, make sure QuickBooks programs and ports are allowed through your firewall.

Windows Firewall or third-party security software can sometimes block QuickBooks connections, resulting in Error H202. Setting up proper firewall rules ensures workstations can reliably communicate with the server.

Step 1: Run QuickBooks File Doctor First

Before making manual changes, try the automated fix:

1. Open QuickBooks Tool Hub on the server.
2. Go to Company File Issues and run QuickBooks File Doctor.
3. Select Check your file and network.
4. Let the tool scan and repair firewall settings.

If the issue persists, continue with manual configuration. 

Step 2: Add Firewall Port Exceptions (Inbound and Outbound)

QuickBooks Desktop uses specific ports to communicate across the network. You need to create both inbound and outbound rules in Windows Firewall.

1. Open the Start menu, type Windows Defender Firewall with Advanced Security, and press Enter.
2. Select Inbound Rules → New Rule.
3. Choose Port, click Next, select TCP, and enter the ports for your QuickBooks version.
4. Choose Allow the connection, select Domain, Private, and Public, then click Next.
5. Name the rule (e.g., “QuickBooks Inbound Ports”) and click Finish.
6. Repeat these steps under Outbound Rules.

Required Ports for QuickBooks Desktop Versions

• QuickBooks Desktop 2020 and later: 8019, XXXXX
• QuickBooks Desktop 2019: 8019, XXXXX
• QuickBooks Desktop 2018: 8019, 56728, 55378–55382
• QuickBooks Desktop 2017: 8019, 56727, 55373–55377

Note: XXXXX represents the dynamic port number assigned to your QuickBooks version. You can find this number in the Port Monitor tab of QuickBooks Database Server Manager on the server.

Step 3: Add Exceptions for QuickBooks Executable Files

Next, allow specific QuickBooks program files through the firewall:

1. In Windows Defender Firewall with Advanced Security, go to Inbound Rules → New Rule.
2. Choose Program, then click Browse to locate each file listed below.
3. Select Allow the connection, apply it to all profiles, and finish the rule setup.
4. Repeat the same process for Outbound Rules.

Common QuickBooks Executables to Allow:

• QBW32.exe
• QBDBMgrN.exe
• QBCFMonitorService.exe
• QBServerUtilityMgr.exe
• FileManagement.exe
• Dbmlsync.exe
• AutoBackupExe.exe
• IntuitSyncManager.exe (if applicable)

The exact location of these files depends on your QuickBooks version and installation path (typically in C:\Program Files\Intuit\QuickBooks [Year]).

Step 4: Update Antivirus or Third-Party Firewall Settings

If you use antivirus or other security software, ensure that:

• The same ports listed above are open.
• All QuickBooks executables are added to the exclusion/trusted list.
• If QuickBooks only works after disabling the software, adjust its settings so it no longer blocks connections.

Step 5: Restart and Test Multi-User Mode

1. Restart the server and all workstations to apply the changes.
2. Open QuickBooks on a workstation and select File > Switch to Multi-User Mode.
3. If the firewall was the issue, Error H202 should no longer appear.

Method 5: Test Network Connectivity (Ping the Server)

Error H202 often points to a network connectivity problem between the workstation and the server. You can quickly test this by “pinging” the server from each workstation.

Step 1: Enable Network Discovery

• On both the server and all workstations, open Control Panel > Network and Sharing Center > Change advanced sharing settings.
• Under the current network profile, select Turn on network discovery and Turn on file and printer sharing.
• Save changes if needed. This ensures all computers can see each other on the network.

Step 2: Find the Server Name

• On the server, open Command Prompt (type CMD in Start and press Enter).
• Type ipconfig /all and press Enter.
• Look for the Host Name in the results and note it down. (You can also press Windows + Pause/Break to see the computer name in system info.)

Step 3: Ping the Server from a Workstation

• On a workstation showing Error H202, open Command Prompt.
• Type ping <ServerName> (replace <ServerName> with your actual server name, e.g., ping QBServer).
• Press Enter.

Step 4: Review the Results

• Success → Replies with 0% packet loss mean the workstation can communicate with the server.
• Failure → If you see Request timed out or high packet loss, the workstation cannot reliably reach the server. This could be caused by:
• The computers are on different networks/VLANs.
• A firewall or router is blocking traffic.
• The server is offline or unreachable.

Step 5: Test All Workstations

Repeat this test on every workstation that needs multi-user access. If any cannot ping the server, resolve the connectivity issue first (check cabling, Wi-Fi, firewall, or router settings). In some cases, you may need IT assistance.

If all workstations can ping the server successfully by name but Error H202 persists, the next step is to check name resolution by updating the hosts file.

Method 6: Edit the Windows Hosts File to Include the Server (Fix Name Resolution)

If workstations can ping the server but QuickBooks still shows Error H202, the issue may be with name resolution-the workstation may not be translating the server name to the correct IP address. Manually updating the Windows hosts file ensures each workstation can locate the server.

Step 1: Get the Server’s Details

• On the server, open Command Prompt and run:
• ipconfig /all.
• Note the Host Name (e.g., QBServer) and the IPv4 Address (e.g., 192.168.1.50).

Step 2: Open the Hosts File on a Workstation

• Log into the workstation with Administrator rights.
• Navigate to: C:\Windows\System32\Drivers\etc\.
• Locate the hosts file (no extension).
• Right-click Notepad and select Run as Administrator, then open the hosts file from within Notepad.

Step 3: Add the Server Entry

• At the bottom of the file, add a line with the server’s IP and name. For example:
• 192.168.1.50 QBServer 
• Use a Tab between the IP and the server name. 

Step 4: Save the File

• Save changes (File > Save). If permissions block the save, confirm you launched Notepad as Administrator.

Step 5: Repeat on All Workstations

• Add the same entry to the hosts file on every workstation that needs access to QuickBooks.
• Optional: You can also add workstation details to the server’s hosts file, but this isn’t usually required for QuickBooks. 

Step 6: Test Multi-User Mode

• Open QuickBooks on a workstation and switch to Multi-User Mode.
• If name resolution was the problem, QuickBooks should now connect to the server without showing Error H202.

Method 7: Additional Troubleshooting (If the Above Methods Don’t Work)

If Error H202 still appears after trying the previous fixes, you can try these advanced steps:

Recreate the Network Data (.ND) File

• On the server, open the folder where your company file is stored.
• Locate the file with the same name as your company file, but ending in .ND (e.g., MyCompanyFile.qbw.nd).
• Rename it to MyCompanyFile.qbw.nd.old.
• Open QuickBooks on the server and re-open the company file in multi-user mode. This will generate a fresh .ND file.
• Try accessing the file again from a workstation.

Move the Company File to a New Folder

• Create a new folder on the server (e.g., C:\QBFiles\Shared).
• Share the folder with full permissions.
• Copy your company file (.QBW) and related files (.ND, .TLG) into the new folder.
• Open the file in QuickBooks from this new location, then test multi-user mode.

Run the QuickBooks Connection Diagnostic Tool (Older Versions) 

• For QuickBooks 2016 and earlier, use the Connection Diagnostic Tool (Intuit’s older utility, replaced by File Doctor in newer versions).
• This tool checks firewall ports and network connectivity and may help pinpoint the issue.

Consult IT or QuickBooks Support

• If none of the above steps work, the issue may be rooted in a deeper network or Windows settings.
• At this stage, it’s best to contact your IT administrator or QuickBooks Support for advanced troubleshooting.

Best Practices to Prevent H202 and Multi-User Issues

• Use only one host computer; the server should host multi-user access while all workstations keep hosting turned off.
• Keep the QuickBooks Database Server Manager updated whenever you update or install a new QuickBooks version.
• Set proper folder permissions by giving the QBDataServiceUser and authorized users full control of the company file folder.
• Configure firewalls and security software to allow QuickBooks programs and ports, ideally right after installation.
• Use a reliable local network; wired Ethernet is recommended for the server and workstations instead of Wi-Fi or VPNs.
• Reboot and update regularly to clear caches and apply the latest Windows and QuickBooks patches. 
• Watch for alternate hosting mode on workstations and disable it immediately if detected.
• Backup your company file often and run Verify/Rebuild Data to maintain file health and prevent errors.
• Consider a dedicated server or hosting service to improve stability and reduce interruptions. 

Final Thoughts

QuickBooks Error H202 is a common obstacle in multi-user setups, typically resulting from configuration, permissions, or network connectivity issues. By following the methods outlined above, you can quickly resolve the QuickBooks H202 error with minimal downtime. However, maintaining a reliable multi-user QuickBooks environment can be challenging if you’re relying on local servers and networks.

By hosting QuickBooks Desktop in the cloud with us, you gain uninterrupted access to your accounting data and unlock dedicated support designed to keep your business moving forward without errors or delays.