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

SAP Error Message - Details

• 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 compatible with the target cost center or GL account. For example, certain types of costs may only be settled to specific types of accounts.
  
  
  Authorization Issues: There may be authorization restrictions preventing the settlement to the specified cost center or GL account.
  
  
  Solutions to KD109 Error
  
  
  Check Settlement Profile:
  
  Go to the configuration of the settlement profile used for the cost object.
  Ensure that the profile allows settlements to cost centers or GL accounts.
  
  
  
  Review Cost Center/GL Account Configuration:
  
  Check the master data for the cost center or GL account to ensure it is set up correctly.
  Make sure that the cost center is active and that the GL account is configured for the type of transactions you are trying to settle.
  
  
  
  Adjust Settlement Type:
  
  Verify that the settlement type you are using is appropriate for the cost object and the target account.
  If necessary, change the settlement type to one that is compatible.
  
  
  
  Authorization Check:
  
  Ensure that the user performing the settlement has the necessary authorizations to settle to the specified cost center or GL account.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific configuration settings related to your organization's setup.
  
  
  
  Related Information
  
  Transaction Codes: You may need to use transaction codes like KO88 (for order settlement) or CJ88 (for project settlement) to perform the settlement and check for errors.
  SAP Notes: Check SAP Notes for any known issues or patches related to the KD109 error.
  Custom Development: If your organization has custom developments or enhancements, ensure that they are not interfering with the standard settlement process.
  
  By following these steps, you should be able to identify the cause of the KD109 error and implement the necessary solutions to resolve it. If the issue persists, consider reaching out to your SAP support team for further assistance.