Fix “QuickBooks Multi-user Mode Not Working” Error

by James Antonio

While working on QuickBooks on a single mode, at times, you need to change it to a multi-user mode. When you switch to a multi-user mode, you might face some issues. One of the most commonly cited issues, when you work on a multi-user mode, is that it shows an error and ends up not working.

QuickBooks Multi-user Mode Not Working

This article will help you to understand the causes of this error and how to resolve it easily with the steps involved.

What is QuickBooks Multi-User Mode Not Working Issue?

The QuickBooks Multi-User Mode Not Working error is identified as ‘QuickBooks Error H202’ and is one of the standard issues occurring on QuickBooks. Due to the unusual nature of the error, there is a possibility that directly you might not be facing the error, but gets transferred to the other system of the same server.

This error usually pops when you try to work on a ‘Company file‘ whose location is on another computer and the copy of the same hasn’t yet been received by the server currently present on your computer.

Causes of QuickBooks Multi-User Mode Not Working Error

With the help of QuickBooks multi-user, several users will be able to connect on the same particular QuickBooks, and that also at the same time.

Add to it, the error often hampers the performance of the QuickBooks software itself.

In brief, the QuickBooks multi-user not working error arises due to the following reasons:

  • When QuickBooks cannot find the particular IP address of the system
  • Windows firewall is restricting the connection between the systems
  • Few issues are there with hosting configuration settings
  • The Anti-virus is not allowing access to the system where the company file is saved
  • QuickBooks database server manager is missing and not installed
  • The QuickBooksBDXX service has not initiated
  • The particular.ND file is wrong

How to Repair “QuickBooks Multi-User Mode Not Working” Error?

QuickBooks Multi-User Mode Not Working

‘Multi-User Mode not working’ error can be easily solved with the help of few steps being followed. However, certain pre-requisites need to be kept in mind before proceeding with the repair process.

The foremost thing to keep in mind is to make sure that you have the ‘QuickBooks Database Server’ installed on your computer.

Next to this, as equal to the version of ‘QuickBooks Database Server’, install the ‘Server Manager’. Also, make sure that the ‘Server Manager’ which you have installed must be compatible with the current version of QuickBooks you are using.

When you are done ensuring the pre-requisites mentioned above you can start with the steps below to start the repair process:

Estimated Time: 10 minutes

Step 1: Set the Current Hosting to Local Files

The first step to begin with fixing fix QuickBooks Multi-User Mode working error is to set the current hosting to local files. Here’s how you do it:

Open QuickBooks
Hit F2 which opens Product Info
Locate ‘local server information‘ and make sure that the hosting is set for ‘Local Files

Step 2: Restart Your “QuickBooks Database Server Manager”

After getting done with the hosting being set to local files, restart your “QuickBooks Database server manager”. Here’s how you do it:

Tap on the ‘Window Start Button‘ and select the menu option.
Type ‘services.msc‘ in the search dialogue box.
Do a right-click and choose Start and then shut the window.
A display extension will pop up for ‘known file types.
Now do a right-click once again on the Start Button, after which, choose Explore.
Choose the Tool Menu and Folder.
Hit on the View Tab and erase the Hide Extensions.
Tap on View Tab again and select to show hidden files.
Finish the step by closing the Windows Explorer.

Step 3: Delete the.ND File

Once you have restarted, next you need to delete the.ND file.

Do an extensive search for the .ND file.
Do a right-click on the file and choose Delete.

When you confirm the.ND file to be deleted, recreate new the.ND file.

Hit the ‘Start’ button.
Choose all programs and type QuickBooks.
Locate QuickBooks Database Server Manager.
Hit the option ‘Scan‘.
Hit the Add Folder button and navigate to the company folder.
Choose the ‘Select company file‘ and confirm OK.
Choose to scan and close the tab once completed.

Step 4: Switch Hosting Modes and Must be On

The final step is to make sure that the client systems must not be trying to host the ‘Company File’ and instead it should display off. In case, you find the hosting option to be not OFF, then follow the steps below to switch hosting modes:

Do a Login as the particular administrator of the QuickBooks software.
Choose file menu and click on Utilities.
Select Stop Hosting Multi-user access.
Select ‘Click Yes‘.
This will close the company file and then re-open once again.
For further information hit F2.

Hope this article has justifiably able to help you with how to fix ‘QuickBooks Multi-user mode not working error. So next time, this error pops up, make sure not to panic and follow the steps well-explained above.


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What are the Possible Causes for the “QuickBooks Multi-user mode, not working” issue?

There are might be a couple of reasons for the “QuickBooks Multi-user mode not working” error to take place:

QuickBooks was unable to fetch the IP address for the current system in use.
The Anti-Virus software loaded on your computer is not permitting to the system on which the company file is currently saved.
Communications blocked by Windows Firewall.
Hosting configuration settings might be not corrected.

How can I check whether my Current QuickBooks Version is Compatible with Multi-mode use?

To check and analyze whether your current QuickBooks version is compatible with multi-mode use, you need to download QuickBooks File Doctor and run a scan.

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