How To Fix KD109 - Settlement to cost center or general ledger not allowed

KD109 - Overview

• Message type: E = Error

• Message class: KD - CO Settlement

• Message number: 109

• Message text: Settlement to cost center or general ledger not allowed

What causes this issue?

You want to settle the order to a cost center or a G/L account and use
the settlement fields in the order master to do this. The chosen
receiver is not allowed, however, according to settlement profile &V1&.

How to fix this error?

You have the following options:
Enter a different settlement profile in the parameters for the
settlement rule. To do this, first delete your entries in the
settlement fields (settlement cost element, cost center or G/L account.
Then enter a settlement profile by choosing "Goto-> Settlement rule" in
the settlement rule maintenance, and choose "Goto-> Settlement
parameters".
Enter a settlement rule to a receiver that is permitted according to
the settlement profile. Choose "Goto-> Settlement rule" to access the
settlement rule maintenance. Choose the value field (F4) on the
"account assignment category" field (or "Cat") to see the possible
settlement receivers according to the settlement profile.
Change the settlement profile &V1&, so that the cost center or G/L
account are allowed as receivers. You can go to Customizing from this
message by choosing F5. This change is only effective when you next
"create" or "change" an order.
Enter a different settlement profile in your order type. You can then
go to Customizing from this message by choosing F5. This change is only
effective for new orders created with this order type.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KD109 - Settlement to cost center or general ledger not allowed ?

  The SAP error message KD109, which states "Settlement to cost center or general ledger not allowed," typically occurs during the settlement process in SAP Controlling (CO) when you attempt to settle costs from a cost object (like an internal order or a project) to a cost center or general ledger account that is not configured to accept such settlements.
  Causes of KD109 Error
  
  
  Settlement Profile Configuration: The settlement profile assigned to the cost object may not allow settlements to cost centers or general ledger accounts. This can happen if the profile is set up to restrict certain types of settlements.
  
  
  Cost Center or GL Account Settings: The cost center or general ledger account you are trying to settle to may not be configured to accept settlements. This could be due to settings in the master data or the account assignment.
  
  
  Settlement Type: The type of settlement you are trying to perform may not be