How To Fix QuickBooks Error H505: Multi-User And Server Problem

Do you often get QuickBooks error H505 message reading, “You are trying to work with a company file that is located on another computer, but that computer needs additional installation and setup (H505)?” If yes, it’s a common multi-user issue that appears when your QuickBooks Desktop is unable to access the company file saved on another computer, which is the server.
Users commonly encounter this problem when they try to switch to multi-user mode or open the company file over the network. Follow this guide to learn about all the factors that can cause this issue and the quick methods to resolve it.

Common Causes Of Error H505 In QuickBooks Desktop

The error code H505 QuickBooks occurs due to a connection failure between your workstations and the server that is hosting the company file. This issue commonly occurs due to the following factors:

• Incorrect hosting setup is one of the main reasons for getting QuickBooks H505 error message. If the workstations are set to host the file instead of the server, this multi-user issue may arise.
• Improper Database Server Manager installation can prevent you from accessing company files in QuickBooks multi-user mode.
• Firewall or Security settings can block the ports, such as 8019, that QuickBooks needs to run on different computers on the same network, connecting with the server hosting the company file.
• Multiple workstations hosting multi-user connections is another factor that can cause QuickBooks Enterprise error H505. It’s when the Host Multi-user access option is enabled on the computers and not on the server.
• Inactive QuickBooks services on the server can also prevent you from accessing the company file in multi-user mode.
• Incorrect DNS Settings prevent your workstation from resolving the host server’s name and IP address, which further blocks QuickBooks multi-user mode, causing error codes such as H202, H303, or H505.
• Damaged or corrupt .ND files also prevent QuickBooks Desktop from reaching the server, which brings QuickBooks error H505 on the server.
• An outdated QuickBooks Desktop version is one of the common causes, as it damages the multi-user environment, resulting in network disruptions, sluggish performance, and strict hosting communication blocks.

Symptoms Of QuickBooks Error H505 On Server

Recognizing the symptoms of QuickBooks h505 error code early can help identify whether the issue is related to network connectivity, hosting settings, or QuickBooks services.
Some common signs include:

• QuickBooks H505 Error Message Pop-Up

The screen displays error code h505 with a message, “You are trying to work with a company file that is located on another computer, but that computer needs additional installation and setup (H505)”.

• Multi-User Failures

Most commonly, users cannot switch to or access QuickBooks company files in multi-user mode due to the occurrence of error code H505.

• Server Disconnects

One of the common indications is that your workstations lose connection. However, you will see that QuickBooks may still work fine directly on the host server.

• QuickBooks Crashing Or Freezing

Your QuickBooks Desktop will freeze, hang for a long time, or may crash completely when trying to open shared company data files in multi-user mode.

• Unresponsive Windows

Upon the appearance of QuickBooks H505 error code, your open windows, running tabs, or input tools stop responding when trying to access files over the network.

What To Check Before Fixing Error Code H505 In QuickBooks?

Before you troubleshoot error code H505 in QuickBooks, it’s essential to identify how your QuickBooks Desktop multi-user network is configured.
Now, consider the following actions:

• Identify your server computer.
• Create a backup of your QuickBooks company files.
• Check your workstation hosting settings.
• Verify QuickBooks background services, such as QuickBooksDBXX and QBCFMonitorService.
• Review Windows Firewall and Antivirus permissions.
• Make sure you don’t delete your main company data file, which is .qbw.

How To Fix Error H505 In QuickBooks Desktop?

The following solutions can help you fix error H505 in QuickBooks Desktop and restore multi-user access. Carefully follow the step-by-step instructions for the expected results:

Solution 1 – Check Hosting Settings On All Computers
Follow the steps below to check and verify the correct hosting settings on all your workstations:

1. First of all, you need to open QuickBooks Desktopon each of your workstations.
2. (Note – do not open the company file).
3. Next, move to the File tab and choose the Utilities option.
   • Here, if you see Stop hosting multi-user access, choose the Disable hosting option.
   • If you see Host multi-user access, don’t change anything.
4. Now, you need to repeat these steps on all the workstations.

After this, go to the server computer:

1. Open QuickBooks Desktop on the server.
2. Again, move to the File tab > Utilities.
3. Here, if you see Host Multi-User Access, click this option to enable hosting. But if you see Stop hosting multi-user access, it means the server is already hosting the file.
4. After this, you need to test QuickBooks in multi-user mode.
5. Restart QuickBooks on each computer, and try to open the company file in multi-user mode.

Unfortunately, if you still face the same error H505 in QuickBooks Desktop, move to the next method.

Solution 2 – Fix Network Issues Using QuickBooks File Doctor Tool
One of the effective utilities is the QuickBooks File Doctor Tool, which is available in the Tool Hub. This tool can help you fix the network-related issues that are causing error H505.
(Note – You need to first download the latest version of QuickBooks Tool Hub, 1.6.0.8)

• Close all the running tabs and open windows on your computer, and visit the official Intuit website.
• Here, click the link to download the latest QuickBooks Tool Hub 1.6.0.8 version.
• Save the downloaded installer file QuickBooksToolHub.exe on your desktop.
• Next, close the open tabs and double-click the installer file to open it. Within the file, follow the on-screen prompts to install the Tool Hub.
• Agree to the license agreement and begin the installation of the Tool Hub. Once done, click Finish.
• Now, go to the Network Issues tab and click QuickBooks Database Server Manager.
• Locate the company file and click Start Scan. By this, the Database Server Manager will automatically configure Windows Firewall settings and network permissions.
• Once the scan is successfully completed, close the Database Server Manager.
• Finally, test the QuickBooks multi-user mode. Retry accessing the shared company files, and if you again notice the QuickBooks error code H505, run the QuickBooks File Doctor tool in the next step.

Solution 3 – Fix File Corruption Using QuickBooks File Doctor Tool
If running QuickBooks Database Server Manager didn’t fix the problem, try using the QuickBooks File Doctor tool to address company file or network-related issues.

• Close all the open windows and tabs on your computer and open QuickBooks Tool Hub.
• Within the Tool Hub, go to the Company File Issues tab and click Run QuickBooks File Doctor.
• You will be asked to choose the company file causing QuickBooks error code h505.
• Use the Browse option to select the company file. Enter admin credentials and run the tool.
• Click Next, and wait till the tool finishes scanning your company file. Once done, click Finish and close all the tabs.
• Test your QuickBooks in multi-user mode, and if you’re still unable to access the company file in multi-user, move to the next method.

Solution 4 – Ensure Active QuickBooks Services On The Server
As mentioned above, if the required QuickBooks services are inactive on the server, it can cause QuickBooks error H505 in the multi-user setup. Here are the steps to fix it:

• Go to the Server computer and open the Run Window (press Windows + R keys).
• Type services.msc in the search bar and press the Enter key.
• The Services window will appear on your screen. Here, look for QuickBooksDBXX.
• (Note – XX is the version year of QuickBooks Desktop. Also, if you have multiple versions, you may see multiple Desktop services.)
• Double-click the service and then choose Set Startup Type to Automatic.
• If the status is not running, continue to click the Start button. Next, move to the Recovery tab.
• Choose the Restart the Service tab, and click the Apply and OK option.
• Once done, repeat the above steps for QBCFMonitorService. After this, close the Services console and restart QuickBooks on the server.
• Restart QuickBooks on each workstation. Switch to multi-user mode to check the multi-user connections.

Solution 5 – Check And Configure Windows Firewall Settings
Windows Firewall and other security settings on your system can block QuickBooks from connecting with the server over the network, which often leads to H-series errors, such as error H505 in QuickBooks Desktop.

1. If QuickBooks File Doctor fails to fix the network-related issues, continue adding Firewall Port Exceptions for inbound and outbound rules.
2. Press the Windows button on your keyboard to open the Start menu.
3. Here, search for Windows Defender Firewall with Advanced Security and then press the Enter key.
4. Now, select Inbound Rules > New Rule, and choose the Port.
5. Click Next and choose TCP. Here, enter the port numbers for your QuickBooks version:
   • 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
6. Again, choose Next, and then select the Allow the Connection option. Here, if prompted, select all profiles, including Domain, Private, and Public.
7. Now, create a rule name, click the Finish option, and repeat the same steps for the Outbound rules.

Now, you need to add exceptions for QuickBooks executable files:

• Open the Windows Defender Firewall with Advanced Security.
• Move to Inbound Rules and then select New Rules.
• Choose Program > Next. Browse and select each QuickBooks executable file.
  • QBW32.exe
  • QBDBMgrN.exe
  • QBCFMonitorService.exe
  • QBServerUtilityMgr.exe
  • FileManagement.exe
  • Dbmlsync.exe
  • AutoBackupExe.exe
  • If applicable, then IntuitSyncManager.exe
• Next, continue to select the Allow the Connection option.
• Click Next and give each rule a descriptive name, and click Finish.
• Finally, you need to carefully repeat the process for Outbound Rules.

Solution 6 – Repair The Damaged Network Data (.ND) File
The Network Data (.ND) files contain configuration information required to establish a connection between QuickBooks workstations and the server. If these files are missing or damaged, users may face QuickBooks error H505.
Here’s how you can repair or recreate the .ND files:

1. Start this method by first locating the company file (.QBW) in the file folder saved on your server computer.
2. Now, search for a file with the same name as your company file, but ending with .ND extension.
3. Once you find the file, right-click it and choose the Rename option.
4. Here, add .old or .bak to the end of your company file.
5. After this, recreate the file. You have two ways:
   • Use QuickBooks Database Server Manager to scan the file folder with your company file. It will automatically generate a new .ND file.
   • Go to Server and open QuickBooks. Go to File >Utilities > Host Multi-user Access.
6. Done with the above steps? Now, retry switching to the QuickBooks multi-user mode and verify that the resolved QuickBooks error code H505. If the issue still persists, try another method.

Solution 7 – Verify Sufficient Folder Permissions And Sharing Settings
Insufficient permissions to the folders containing QuickBooks company files can cause H-series QuickBooks errors, such as H505. Make sure the QuickBooks Database Server user and all your workstations have read/write access.

1. First, go to the folder that contains the QuickBooks company files.
2. Right-click the folder and choose Properties. From the menu, select Security, then Advanced.
3. Next, choose QBDataServiceUserXX and then click the Edit option.
4. Now, make sure to set the following permissions as 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
5. If any permission is missing or incorrect, go to the Properties tab, choose Security, and select the Edit button.
6. Here, select QBDataServiceUserXX > Full Control > Apply > OK.

Note – these settings must be applied to subfolders and all the files.

1. Now, make the required changes to the permissions in QuickBooks supporting folders.
2. Repeat the steps from 1-6 if it’s on the server, and adjust permissions to the folders below:
   • C:\ProgramData\Intuit\Entitlement Client\vX.
   • C:\ProgramData\Intuit\QuickBooks <version>.
   • C:\ProgramData\Common Files\Intuit.
   • C:\Users\Public\Public Documents\Intuit\QuickBooks\Company Files.
   • \Sample Company Files, etc.
3. Afterward, set Windows sharing permissions. For this, right-click the folder, select Properties > Sharing > Share > Add.
4. Next, continue adding QBDataServiceUserXX, setting the permission level to Full Control.
5. Finally, choose Share > OK.

Preventive Tips To Avoid Multi-User QuickBooks Error H505

Following a few preventive measures can help keep your QuickBooks network stable and reduce the chances of encountering H505 in the future.

• Keep QuickBooks Desktop updated to the latest supported release.
• Use the correct hosting settings and allow only the designated server to host the company file.
• Make sure your QuickBooks Database Server Manager runs properly on the server.
• Configure firewall settings correctly so QuickBooks can communicate across the network.
• Maintain a stable network connection between workstations and the server.
• Check User Account Control settings to avoid interruptions that prevent background database services from starting or communicating properly across a network.
• Avoid storing company files on unsupported NAS devices when using QuickBooks Database Server Manager.
• Create regular backups of your QuickBooks company files to protect your data.
• Check network and hosting settings periodically, especially after Windows or QuickBooks updates.
• Use the latest QuickBooks Tool Hub when troubleshooting network-related issues.

Need Live QuickBooks Assistance?

QuickBooks error H505 can significantly interrupt multi-user access when your workstations fail to connect with the computer hosting the company file. Hopefully, the above-given troubleshooting steps have helped you fix this error. We suggest you immediately check hosting settings when facing any of the H-series errors. Unfortunately, if this problem remains the same, consider seeking live QuickBooks assistance to identify and resolve the fundamental network or hosting problem.
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