How To Fix KD135 - Cross company settlement is not supported (&1/&2)

KD135 - Overview

• Message type: E = Error

• Message class: KD - CO Settlement

• Message number: 135

• Message text: Cross company settlement is not supported (&1/&2)

What causes this issue?

You are trying to settle a sender with company code &V1& to a receiver
with company code &V2&.

System Response

The system does not allow a settlement between two different company
codes.

How to fix this error?

Change the settlement rule accordingly.

Procedure for System Administrators

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.

KD135 - Details

• The SAP error message KD135 "Cross company settlement is not supported (&1/&2)" typically occurs in the context of controlling (CO) when you are trying to perform a settlement process that involves multiple company codes. This error indicates that the system does not support the settlement of costs across different company codes.
  
  Cause:
  
  Cross-Company Code Settlement: The primary cause of this error is that the system is configured to prevent cross-company code settlements. In SAP, each company code is treated as a separate legal entity, and certain processes, including settlements, are restricted to within the same company code.
  Configuration Settings: The configuration settings in the controlling area or the settlement profile may not allow for cross-company code transactions.
  Master Data Issues: The master data for the cost objects involved may not be set up correctly to allow for cross-company code transactions.
  
  
  Solution:
  
  
  Check Configuration:
  
  Go to the configuration settings in the SAP system (Transaction SPRO).
  Navigate to Controlling >