How To Fix KD031 - Receiver categ. &1 is not allowed by settlement prof. &2 for this sender

SAP Error Message - Details

• Message type: E = Error

• Message class: KD - CO Settlement

• Message number: 031

• Message text: Receiver categ. &1 is not allowed by settlement prof. &2 for this sender

What causes this issue?

The settlement profile specifies which receiver categories you can
settle a sender to. Receiver category &V1& is not allowed by settlement
profile &V2& for this sender.

How to fix this error?

You can do the following:
Assign a settlement profile to the sender, that implements the required
receiver category &V1&.
Choose "Goto -> Settlement Parameters".
Specify another receiver for distribution rule &V3&. If you already
used this rule for a previous settlement, enter a valid-to period. Then
enter a new rule for the next settlement with a receiver category. This
category must be one that is allowed by settlement profile &V2&.

Procedure for System Administrators

If necessary, maintain a suitable settlement profile.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KD031 - Receiver categ. &1 is not allowed by settlement prof. &2 for this sender ?

  The SAP error message KD031 indicates that there is a mismatch between the receiver category and the settlement profile for a sender in the context of controlling (CO) and internal order management. This error typically arises when you attempt to settle costs from a sender object (like an internal order or cost center) to a receiver object (like a cost center, internal order, or profitability segment) that is not allowed by the defined settlement profile.
  Cause:
  
  Settlement Profile Configuration: The settlement profile assigned to the sender object does not allow the specified receiver category. Each settlement profile defines which receiver categories are permissible for settlement.
  Receiver Category: The receiver category you are trying to use (e.g., cost center, internal order, etc.) is not compatible with the sender's settlement profile.
  Sender Object Type: The sender object type may not be configured to settle to the specified receiver category.
  
  Solution:
  
  
  Check Settlement Profile:
  
  Go to the configuration of the sender object (e.g., internal order or cost center) and check the assigned settlement profile.
  Verify the settings of the settlement profile to ensure that it allows the intended receiver category.
  
  
  
  Modify Settlement Profile:
  
  If the receiver category is indeed valid and should be allowed, you may need to modify the settlement profile to include this category.
  This can be done in the SAP configuration under the controlling module (transaction code: OKO7 for settlement profiles).
  
  
  
  Change Receiver:
  
  If modifying the settlement profile is not an option, consider changing the receiver to one that is allowed by the current settlement profile.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP CO module expert to understand the implications of changing settlement profiles and receiver categories.
  
  
  
  Related Information:
  
  
  Transaction Codes:
  
  OKO7: To maintain settlement profiles.
  KOB1: To display line items for internal orders.
  KSV5: To analyze settlement rules.
  
  
  
  SAP Notes: Check for any relevant SAP Notes that might address specific issues or bugs related to this error message.
  
  
  Testing: After making changes, perform a test settlement to ensure that the error is resolved and that the settlement process works as expected.
  
  
  By following these steps, you should be able to resolve the KD031 error and successfully perform the settlement process in SAP.