Troubleshooting QuickBooks Error H202: A Step-by-Step Guide

QuickBooks Error H202

QuickBooks is a powerful accounting software widely used by businesses for its robust features and ease of use. One of its key features is the multi-user mode, allowing multiple users to work on the same company file simultaneously. However, users sometimes encounter

QuickBooks Error H202 when switching to multi-user mode

. This article will provide a detailed, step-by-step guide to understand and resolve QuickBooks Error H202, ensuring a smooth transition to multi-user mode.

What is QuickBooks Error H202?

QuickBooks Error H202

occurs when QuickBooks Desktop tries to establish a connection to the company file but fails. This error is commonly seen when you try to run QuickBooks in multi-user mode or when the software cannot open a company file stored on another computer. The error message typically indicates that the multi-user connection to the server is blocked.

Symptoms of QuickBooks Error H202

  1. Unable to switch to multi-user mode.
  2. Error message: "Error code H202: The multi-user connection to the server is blocked."
  3. QuickBooks performance slows down or freezes.
  4. You can’t open a company file located on another computer.

Causes of QuickBooks Error H202

Several factors can cause QuickBooks Error H202. Understanding these can help in troubleshooting the issue effectively:

  1. Incorrect Hosting Configuration Settings: The hosting settings on your server or workstation might be misconfigured.
  2. Damaged Network Data (.ND) Files: These files are essential for QuickBooks to run in a network or multi-user environment.
  3. Improper DNS Settings: Incorrect DNS settings can prevent QuickBooks from accessing the server.
  4. Deleted or Corrupted Host File: The host file, which helps locate the server, might be deleted or corrupted.
  5. Unreadable ND or TLG Files: The Network Data (.ND) and Transaction Log (.TLG) files might be unreadable or deleted.
  6. Company File Not Connected to Server: The company file might not be properly connected.

Additional Tips to Prevent QuickBooks Error H202

  1. Regularly Update QuickBooks: Ensure that you are using the latest version of QuickBooks to avoid compatibility issues.
  2. Maintain Network Health: Regularly check and maintain your network to ensure stable connections.
  3. Regular Backups: Regularly back up your QuickBooks data to prevent data loss in case of errors.
  4. Proper Configuration: Ensure that QuickBooks is properly configured on all workstations and the server.

How to Fix QuickBooks Error H202?

Follow these steps to resolve QuickBooks Error H202 and switch to multi-user mode seamlessly:

Step 1: Run QuickBooks Database Server Manager

  • Download and Install QuickBooks Tool Hub:
      1. Close QuickBooks.
      2. Download the latest version of QuickBooks Tool Hub from the Intuit website.
      3.  Install the tool by following the on-screen instructions.
      4. Open QuickBooks Tool Hub.
  • Run QuickBooks Database Server Manager:
    1. In QuickBooks Tool Hub, go to the Network Issues tab.
    2. Click on QuickBooks Database Server Manager.
    3. If QuickBooks is not installed on your server, you will need to install it.
    4. Scan the folder where the company file is stored.
    5. After the scan completes, close the Database Server Manager.

Step 2: Use the QuickBooks Network Diagnostic Tool

  1. Open QuickBooks Tool Hub:
    1. Go to the Network Issues tab.
  2. Run QuickBooks Network Diagnostic Tool:
    1. Click on QuickBooks Network Diagnostic Tool.
    2. This tool will automatically diagnose and fix network issues.
    3. Follow the on-screen instructions to complete the process.

Step 3: Configure Firewall Settings

  • Open Control Panel:
      1. Go to System and Security > Windows Defender Firewall.
  • Allow QuickBooks through Firewall:
      1. Click on Allow an app or feature through Windows Defender Firewall.
      2. Ensure that QuickBooks is listed and that both Private and Public boxes are checked.
      3. If QuickBooks is not listed, click on Allow another app... and add QuickBooks manually.
      4. Click OK to save the changes.
  • Create Firewall Exceptions:
    1. In Windows Defender Firewall, click on Advanced Settings.
    2. Create a new inbound rule for the specific ports used by QuickBooks.
    3. Create another outbound rule for the same ports.

Step 4: Restart the Base Filtering Engine (BFE) Service

  • Open Services:
      1. Press Windows + R, type `services.msc`, and hit Enter.
  • Locate Base Filtering Engine:
      1. Scroll down and find Base Filtering Engine.
  • Restart the Service:
    1. Right-click on Base Filtering Engine and select Restart.

Step 5: Rename ND and TLG Files

  • Open the Folder Containing the Company File:
      1. Locate the folder where your company file is stored.
  • Rename ND and TLG Files:
      1. Find the files with the same name as your company file but with .ND and .TLG extensions.
      2. Right-click on each file and select Rename.
      3. Add `.OLD` at the end of each file name (e.g., `company filename.nd` to `company filename.nd.OLD`).
  • Restart QuickBooks:
    1. Open QuickBooks and try to access your company file in multi-user mode.


QuickBooks Error H202

can be a significant hindrance when trying to switch to multi-user mode, but following the steps outlined in this guide can help you resolve the issue efficiently. By running the

QuickBooks Database Server Manager

, using the Network Diagnostic Tool, configuring firewall settings, restarting the Base Filtering Engine service, and renaming ND and TLG files, you can ensure a smooth and error-free multi-user mode experience in QuickBooks. Regular maintenance and updates will help prevent this error from recurring, allowing you to focus on your business operations without interruption.