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