A reader wrote in to ask why he had started noticing new files with his Company File Name ending in .sds. He didn't recall seeing them prior to upgrading to QuickBooks 2017 products.
Well, he's absolutely right. This has something to do with the subject I wrote about recently, "Encryption, Security and Passwords."
Prior to QuickBooks Desktop Versions 2017, including QuickBooks Enterprise v17.0, QuickBooks used a file type of *.LGB to store access rights and login details for Apps. In QuickBooks 2017 versions, a pair of files, the *.sds and *.sdu files are used instead of *.LGB files.
These files appear in the same location as your Company file. You'll see the *.sds file written as YourCompanyFileName.sds. This company-file related file within the company file directory serves as a pointer to the companion *.sdu file. All *.sdu files, regardless of the originating windows directory of their companion *.sds files, are stored in one location (by default): "C:\Users\‹username›\Intuit\QuickBooks\‹hash based subfolder name›\‹qbw file name›.sdu".
The *.sdu files are very similar to *.LGB files with the exception of an extra layer of encryption. In contrast to prior versions, the QuickBooks 2017 *.sdu files are easier to locate.
But to make thing worse, the App named "ScheduledReports" is added to .QBW/.SDU records and is given full Admin User data access on every .QBW file startup. This poses yet another security risk.
So, when you see those new .sds and .sdu files, you'll know what they're for.
By the way, you still won't find them within Intuit's list of QuickBooks related file-types.