How To Fix C2404 - Settlement Rule not supported by Event-Based Posting

C2404 - Overview

• Message type: E = Error

• Message class: C2 - Other messages production orders

• Message number: 404

• Message text: Settlement Rule not supported by Event-Based Posting

What causes this issue?

Order &V1& contains a settlement rule for a receiver other than material
and event-based posting is active for this order. Event-based posting is
only supported if the order contains only settlement rules with material
as receiver.

System Response

Saving the order is not possible.

How to fix this error?

Delete any settlement rules with receivers other than material in the
order or, if you are currently creating the order, change the result
analysis key to one without event-based posting.

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

C2404 - Details

• The SAP error message C2404, "Settlement Rule not supported by Event-Based Posting," typically occurs in the context of project systems or internal orders when there is an attempt to settle costs using a settlement rule that is not compatible with event-based revenue recognition or posting.
  
  Cause:
  
  Settlement Rule Configuration: The settlement rule defined for the order or project may not be compatible with event-based posting. Event-based posting is used for recognizing revenues and costs based on specific events rather than at the end of a period.
  Incorrect Settlement Type: The settlement type defined in the settlement rule may not support event-based postings. For example, certain types of settlement (like periodic) may not be allowed.
  Missing or Incorrect Settings: The settings for event-based revenue recognition in the project or order may not be properly configured, leading to incompatibility with the defined settlement rules.
  
  
  Solution:
  
  Review Settlement Rules: Check the settlement rules defined for the project or order.