Error H202 occurs when QuickBooks Desktop cannot establish a connection between the host computer (where the company file is stored) and workstations (other users trying to access the file). The error typically appears with messages like:

• "QuickBooks could not open the company file in multi-user mode."
• "The host computer could not be found."
• "There is a problem with the company file. Please try again."

This error is common in networked environments where multiple users access the same QuickBooks company file.

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Causes of QuickBooks Error H202

1. Incorrect Hosting Configuration

• The company file is not properly hosted on the server.
• The QuickBooks Database Server Manager (QBDSM) is not running or configured correctly.

2. Firewall or Antivirus Blocking QuickBooks

• Security software may block QuickBooks from communicating over the network.

3. Damaged or Outdated QuickBooks Installation

• Corrupted program files or an outdated version can cause connectivity issues.

4. Network Permissions Issues

• The host computer does not have proper file-sharing permissions.
• Workstations cannot access the shared folder where the company file is stored.

5. Incorrect Windows File Sharing Settings

• Network Discovery or File and Printer Sharing is disabled.
• The company file is stored in a restricted folder (e.g., Program Files).

6. QuickBooks Database Server Manager Not Working

• QBDSM is not installed or running properly on the host computer.

7. Company File Corruption

• The QuickBooks company file (.QBW) may be damaged.

8. Incorrect Network Configuration

• IP address conflicts, incorrect workgroup settings, or unstable network connections.

How to Fix QuickBooks Error H202

Fix 1: Verify Hosting Settings & Restart QB Database Server

1. On the host computer, open QuickBooks.
2. Go to File > Open or Restore Company File.
3. Select the company file and open it in single-user mode.
4. Switch to multi-user mode (File > Switch to Multi-User Mode).
5. If prompted, confirm hosting the file.

If the error persists:

6. Close QuickBooks.

7. Open QuickBooks Database Server Manager (Start Menu > QuickBooks > Tools).

8. Click "Scan Folders" and add the folder containing the company file.

9. Restart the QB Database Server service.

Fix 2: Check Firewall & Antivirus Settings

1. Temporarily disable firewall/antivirus (Windows Defender, Norton, McAfee, etc.).
2. Add QuickBooks as an exception:

• Go to Windows Defender Firewall > Allow an app through firewall.
• Add QBW32.EXE and QBDBMgrN.exe (found in C:\Program Files\Intuit\QuickBooks\).

1. Re-enable security software and test multi-user mode.

Fix 3: Update QuickBooks to the Latest Release

1. Open QuickBooks and press F2 to check the version.
2. Go to Help > Update QuickBooks Desktop.
3. Install all updates and restart QuickBooks.

Fix 4: Verify Network Sharing Permissions

1. On the host computer, right-click the folder containing the company file.
2. Select Properties > Sharing > Advanced Sharing.
3. Check "Share this folder" and assign Full Control permissions.
4. Under Security tab, ensure "Everyone" has Read/Write access.

Fix 5: Move the Company File to a Shared Location

• Avoid storing the file in Program Files, Desktop, or Documents.
• Move it to a shared network folder (e.g., C:\QuickBooks_Data).
• Update the path in QuickBooks Database Server Manager.

Fix 6: Reinstall QuickBooks Database Server Manager

1. Uninstall QBDSM via Control Panel > Programs > Uninstall a program.
2. Reinstall it from the QuickBooks installation folder or download it from Intuit’s website.

Fix 7: Use the QuickBooks Connection Diagnostic Tool

1. Download the QuickBooks Tool Hub (from Intuit’s website).
2. Open Network Issues > Connection Diagnostic Tool.
3. Follow the prompts to detect and fix network issues.

Fix 8: Rebuild the Company File (If Corrupted)

1. Create a backup.
2. Go to File > Utilities > Verify Data.
3. If errors are found, run File > Utilities > Rebuild Data.

Fix 9: Check Workgroup & Network Settings

• Ensure all computers are on the same network (LAN).
• Verify workgroup names match (Control Panel > System > Change Workgroup).
• Assign static IP addresses to avoid conflicts.

Fix 10: Contact QuickBooks Support

If none of the above solutions work, contact QuickBooks Customer Support for further troubleshooting.

Q&A: QuickBooks Error H202 in Multi-User Mode

Q1. Why does Error H202 occur only in multi-user mode?

This error appears when QuickBooks cannot establish a connection between the host computer and workstations due to network, permission, or configuration issues.

Q2. Can I use QuickBooks in single-user mode if H202 persists?

Yes, but only one user can access the file at a time. Multi-user mode is required for simultaneous access.

Q3. Does Error H202 mean my company file is corrupted?

Not always—it’s usually a network or hosting issue. However, running Verify/Rebuild Data can rule out corruption.

Q4. How do I know if QuickBooks Database Server Manager is running?

• Press Ctrl + Shift + Esc to open Task Manager.
• Check if QBDBMgrN.exe is running under Processes.

Q5. Should I disable Windows Firewall completely?

No—only temporarily disable it for testing. If the error disappears, add QuickBooks as an exception instead.

Q6. Can a VPN cause Error H202?

Yes, VPNs can interfere with local network connections. Disconnect the VPN and retry.

Q7. How do I assign static IPs to avoid network conflicts?

1. Open Command Prompt and type ipconfig /all.
2. Note the current IP, subnet mask, and gateway.
3. Go to Network Settings > Change adapter options > TCP/IPv4 Properties.
4. Enter a manual IP (e.g., 192.168.1.10) and save.

Q8. Why does QBDSM fail to detect my company file?

• The file is in a non-shared folder.
• Permissions are not set correctly.
• QBDSM needs a rescan (open QBDSM > Scan Folders).

Q9. Does QuickBooks Online (QBO) have Error H202?

No, Error H202 is specific to QuickBooks Desktop in multi-user mode. QBO is cloud-based and doesn’t require hosting.

Q10. How can I prevent Error H202 in the future?

• Keep QuickBooks updated.
• Store company files in a shared network folder.
• Regularly verify/rebuild data.
• Ensure QB Database Server Manager is running.

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Conclusion

QuickBooks Error H202 is a common but fixable issue that occurs when switching to multi-user mode. By following the troubleshooting steps above—such as configuring QBDSM, checking firewall settings, and verifying network permissions—you can resolve the error and restore multi-user access.

If the problem persists, QuickBooks Support can provide advanced solutions. Maintaining proper network settings and keeping software updated will help prevent future occurrences of Error H202.