How To Fix KD220 - Settlement profile & : "Can be settled" -> Enter settlement rule

KD220 - Overview

• Message type: E = Error

• Message class: KD - CO Settlement

• Message number: 220

• Message text: Settlement profile & : "Can be settled" -> Enter settlement rule

What causes this issue?

Sender settlement profile &V1& specifies that <LS>actual costs / cost
of sales can be settled</>
If this indicator is set, you can settle the actual costs and the cost
of sales for the sender, but this is not a requirement.
If you did not enter a distribution rule for the sender, and attempt to
settle the sender, then the system displays error message KD205,
stating "Enter the settlement rule for the sender"
If the balance of the sender is not zero, and you attempt to close the
sender, or set the deletion flag, then the system displays a warning.
You can close the sender with a balance. (This is not possible if the
"Actual costs / cost of sales to be fully settled" indicator is
activated.)

How to fix this error?

To settle the sender, enter a settlement rule. If required, note the
long text for message KD205: "Enter the settlement rule for the
sender".
If you do not want to settle the actual costs and cost of sales for the
sender, activate the <LS>Actual costs / cost of sales not for
settlement </> indicator in settlement profile &V1&.
This leads to the following:
The actual costs and the cost of sales are no settled, even if
settlement is triggered for the object.
Error message KD205 is no longer displayed.
WiP and variances can still be settled.
When you close the sender, or when you set the deletion flag, the
system does not display a message if the balance of the object is not
zero.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KD220 - Settlement profile & : "Can be settled" -> Enter settlement rule ?

  The SAP error message KD220, which states "Settlement profile & : 'Can be settled' -> Enter settlement rule," typically occurs in the context of internal order settlement or project settlement in SAP. This error indicates that the system has identified that the specified settlement profile allows for settlement, but there is no settlement rule defined for the order or project in question.
  
  Cause:
  
  Missing Settlement Rule: The most common cause of this error is that the internal order or project does not have a settlement rule defined. Settlement rules are necessary for the system to know how to allocate costs to the appropriate cost objects (like cost centers, projects, or other internal orders).
  Incorrect Settlement Profile: The settlement profile assigned to the order may not be configured correctly, or it may not be appropriate for the type of settlement you are trying to perform.
  Order Status: The order or project may not be in