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Rectify QuickBooks Error H202 When Running Multi-User Mode

• 
• By Jonathan Browns
• Oct 07, 2025
• Accounting
• 7 min read

Is QuickBooks Error H202 stopping you while switching to multi-user mode? This error means that something is preventing the multi-user connection to your server. Other factors that trigger this issue include incorrect hosting settings, internet issues, firewall blockage, and problems with services such as QBCFMonitorService and QuickBooksDBXX. Therefore, it is necessary to resolve QuickBooks Desktop Error H202 using the solutions discussed in this post. Let’s get a deep dive into this blog.

What Do You Mean By QuickBooks Error Code H202?

Most often, users experience a series of errors in QuickBooks, such as QuickBooks Error H202, QuickBooks Error H303, and QuickBooks Error H505, while accessing multi-user mode. However, when this error emerges, it reflects the warning message stating:

“This company is on another computer, and QuickBooks needs some help connecting.”
or
“Problem with multi-user hosting setup. QuickBooks could not open the file in multi-user mode.”

Unfortunately, when the QuickBooks Error H202 occurs in multi-user mode, it may prevent users from performing ongoing business tasks.

What Causes QuickBooks Multi-User Mode Error H202?

The following are the root causes that trigger QuickBooks Multi-User mode error H202.

• Inappropriate settings of the Windows Firewall or third-party security application.
• An uninterrupted internet connection may also prevent users from working in multi-user mode.
• QuickBooksDBXX and the QBCFMonitorService required to operate QuickBooks are not running properly.
• Users don’t have enough permissions to run QuickBooks in multi-user mode.
• Damaged or corruption in your company file may also trigger this issue.
• Incorrect hosting settings may also interrupt users from working in a multi-user environment.

How to Fix Error H202 In QuickBooks Desktop In Easy Ways?

Once you understand the possible causes, let’s move on to the troubleshooting part to resolve Error H202 in QuickBooks Desktop.

Solution 1: Verify The Services On Your Server

Important Tip: If you are accessing the full version of QuickBooks on a server PC, then turn on the multi-user hosting.

1. For that, launch QuickBooks on the Server PC. Tap on File > Utilities > Host Multi-User Access option.

The users must verify that the QuickBooks services like QuickBooksDBXX and QBCFMonitorService are running properly. For that, use the steps instructed below.

• Press the Windows logo key to launch the Start menu on the server PC.
• Insert “Run” in the search area and launch the Run window.
• Now, type services.msc in the Run window and hit the OK button.

• Start locating the QuickBooksDBXX from the list of options and double-tap on it. Herein, the XX represents the version of QuickBooks you are using.
• Verify that the Service status is selected as Running or Started. If none of the options is chosen, go with the Start option.

• Thereon, choose the Recovery tab.
• Now, tap on the Restart the Service beside the following drop-down menus:
  • First Failure
  • Second Failure
  • Subsequent Failure

• When changes are done, tap on Apply and then click OK.
• Resume the same steps for QBCFMonitorService.
• Once you are all set, launch QuickBooks on every workstation. Then, tap on File menu > Switch to Multi-User Mode. If you are able to launch everything properly, the issue is resolved.

Solution 2: Test Your Internet Connection By Pinging the Server

You must try pinging the server from your workstation to verify the internet connectivity. So, begin pinging the server from each workstation that is facing QuickBooks Error Code H202.

Enable the Network Discovery On the Server Computer and Workstations Having Error H202

• Press the Windows Logo key to bring up the Start menu on your server and workstations.
• Type Network in the search console and access the Network and Sharing Center.

• Choose the Change Advanced Sharing Settings tab.
• Ensure that Turn on Network Discovery is chosen from the Network Discovery and File and Printer sharing sections.

Obtain Your Server Name From the Server

• Press the Windows logo key and then launch the Start menu on your server computer.
• Insert “Run” into the search panel and open Run.
• Now, type “CMD” into the Run window, then hit the Enter key.
• Type “ipconfig/all” into the CMD window, then press Enter.
• Search for the Host Name in the Windows IP Configuration section. You will notice that the server name is mentioned on the right.

At last, note the hostname or copy it to a Word document so you can access it easily.

Return to your Workstation for testing the server

• Launch the Start menu on your Workstation.
• Press the Windows + R keys to access the Run window and type CMD in the search area.
• When you are in the Command Prompt window, type “ping [your server name]” and hit the Enter key.
• Finally, resume these steps for each Workstation that gets Error H202.

If you get a reply for each packet with no loss, it states that your server is working fine.

If there’s packet loss or a very slow reply, stop. You need to connect with an IT expert to get assistance regarding your network.

Solution 3: Verify that QuickBooks is Set to Multi-User Mode

There are times when users may face QuickBooks Error H202 Multi-User Mode if it is set to single-user mode instead of a multi-user environment. So, to resolve the issue, try switching to multi-user mode.

• Launch the QuickBooks Desktop application and hit the File menu.
• Choose the Switch to Multi-User Mode.

• Try reopening QuickBooks application and try hosting the company file in multi-user mode. Then, see if the QuickBooks Error Code H202.

Solution 4: Adding the Database Manager Services to the Windows Admin Group

Follow these instructions to verify that the users have enough Windows admin permissions to run QuickBooks in multi-user mode.

Check that the permissions Are Set Accurately

• Press the Windows Logo key and then start looking for File Explorer.
• By this, File Explorer opens.
• Start searching for the QuickBooks company file folder and right-click on it. Then, opt for the Properties tab.
• Head to the Security tab and choose the Advanced tab.
• Next, choose the QBDataServiceUserXX and then hit the Edit menu.
• You must set the following settings to Allowed:
  • 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

Now, perform the following steps if the permissions are not set correctly:

• You must right-click on the company file folder and then choose Properties.
• Select the Security tab and hit the Edit menu.
• Now, go with the QBDataServiceUserXX, choose Full Control, and then tap on Allow.
• At last, save the necessary changes and then click OK.

Edit the Company File Folder Permissions

• Access the File Explorer on your computer.
• Now, locate the following paths and right-click on each one of them:
  • C:\Program Data\Intuit\Entitlement Client\v8
  • C:\Program Data\Intuit\Entitlement Client\v6.0
  • C:\Program Data\Intuit\Entitlement Client\v5
  • C:\Program Data\Intuit\Entitlement Client\v3
  • C:\Program Data\Intuit\Entitlement Client
  • C:\Program Data\Intuit\QuickBooks Enterprise Solutions X.0 (X = version) or C:\Program Data\Intuit\QuickBooks 20XX (XX = year)
  • C:\Program Data\COMMON FILES\INTUIT
  • C:\Program Data\COMMON FILES\INTUIT\QUICKBOOKS
  • C:\Users\Public\Public Documents\Intuit\QuickBooks\FAMXX (XX = year)
  • C:\Users\Public\Public Documents\Intuit\QuickBooks\Company Files
  • C:\Users\Public\Public Documents\Intuit\QuickBooks\Sample Company Files\QuickBooks Enterprise Solutions X.0 (X = version) or C:\Users\Public\Public Documents\Intuit\QuickBooks\Sample Company Files\QuickBooks 20XX (XX = year)

Furthermore, use the steps below for each of these folders. Also, ensure that you might not have each folder as some are version-specific.

• You must right-click the folder and then choose Properties.
• Choose the Security tab and tap on Everyone option.
• Next, head to the Properties and Sharing. Then, click on Share Add.
• Choose the corresponding of QBDataServiceUserXX for the QuickBooks version you are using.
• Later on, configure the permission level of both admin and other users to Full Control and then Share.

Solution 5: Setting Up Windows Permissions to Access the Data File

Apply the steps below to set the Windows Permissions for opening the company file properly.

• Access the Windows Taskbar at the bottom and tap on the Windows icon.
• Start looking for File Explorer and then open it from the available results.
• Now, start looking for the QuickBooks file folder and right-click on it.
• Next, hit the Properties tab and then choose the Sharing > Share Add option.
• Choose the corresponding service QBDataServiceUserXX for your QB version.
• At last, you must set the permissions level of both users to Full Control and then choose the Share option.

Solution 6: Set the Windows Firewall Settings

Windows Firewall is a security application that blocks access to unidentified apps or links that it considers a threat. QuickBooks accesses numerous executable files to run numerous operations, including accessing the data file. In case the settings of the QuickBooks Desktop aren’t set properly or it is considered a threat, then adjust the Windows Firewall settings. Thus, it ensures that the QuickBooks Desktop is running smoothly.

Solution 7: Start Running QuickBooks Database Server Manager On Your Server

Your server computer is the one that carries your QuickBooks data files. However, other computers that are linked to your network are your workstations.

• Open the QuickBooks Tool Hub on your device and then tap on Network Issues.
• Choose the QuickBooks Database Server Manager option. If you see that QuickBooks isn’t on the server, it will ask you to install it.

• From the QuickBooks Database Server Manager, hit the Start Scan tab when you notice the data file folders. If you can’t find the folder, tap on Browse and start looking for the location of the data file, and hit the Start Scan tab.

• With this, QBDBMgrN begins configuring your firewall permissions automatically. Once the scanning process is completed, choose the Close option.
• At last, launch QuickBooks on every workstation where you see QuickBooks Enterprise Error H202. Then, tap on File menu > Switch to Multi-User Mode. In case you are running a server computer as a workstation, then you must verify it also.

Solution 8: Use the QuickBooks File Doctor Tool

QuickBooks File Doctor is a great utility that helps in diagnosing and addressing network and company file issues, preventing multi-user access. Thus, it also helps you in fixing the H202 error QuickBooks Desktop.

Conclusion

QuickBooks Error H202 is a common problem that might disrupt users from working in a multi-user environment. So, to fix the issue, you must test the internet connection, verify the services running on the server, and ensure proper Windows permissions. Furthermore, if you still require any additional help, feel free to connect with our BizBooksAdvice professionals.

Frequently Asked Questions (FAQ’s):-

1. What is QuickBooks Error H202?

QuickBooks Error H202 is a common issue that might prevent users from working in a multi-user environment. It may be caused by incorrect hosting setup, Windows Firewall issues, or a problem with the internet connection.

2. Can an antivirus cause QuickBooks Error H202?

Yes, the interference of the antivirus software installed in the system might give rise to QuickBooks Error H202. Therefore, to fix the issue, you must configure the antivirus settings properly.

3. Is Error H202 QuickBooks a server or workstation issue?

Error H202 QuickBooks is a server issue that mainly represents that the workstation can’t connect to the server hosting the data file. This issue may appear because of the incorrect hosting settings, corrupt network files, or missing QuickBooks services.

4. How to resolve the QuickBooks multi-user mode not working error?

The users must fix the QuickBooks multi-user mode not working error by applying the following solutions.

• Start running QuickBooks Database Server Manager
• Check that the hosting mode is turned on on all PC
• Resolve the internet connectivity issues
• Recreating the company file folder

5. Can using QuickBooks Tool Hub or File Doctor automatically fix H202?

Yes, QuickBooks Tool Hub, a part of the File Doctor, can scan and address the QuickBooks Error H202, which is associated with data file corruption.