How To Fix KD506 - Define a settlement cost element for receiver type &

SAP Error Message - Details

• Message type: E = Error

• Message class: KD - CO Settlement

• Message number: 506

• Message text: Define a settlement cost element for receiver type &

What causes this issue?

In allocation structure &V2& (controlling area &V3&), you did not
define which cost element should be used when settling costs/revenues
of the sender. Nor did you define receiver type &V1&.

How to fix this error?

Assign a different allocation structure to the settlement sender (->
Master data -> Settlement rule -> Goto -> Settlement parameters), or
maintain allocation structure &V2&.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KD506 - Define a settlement cost element for receiver type & ?

  The SAP error message KD506, which states "Define a settlement cost element for receiver type &," typically occurs in the context of controlling (CO) when you are trying to settle costs from one cost object to another, such as from an internal order or a project to a cost center or another internal order.
  
  Cause:
  The error arises because the system requires a settlement cost element to be defined for the specific receiver type you are working with. The receiver type could be a cost center, internal order, or any other object that can receive costs. If the system cannot find a defined settlement cost element for that receiver type, it will trigger this error.
  
  Solution:
  To resolve this error, you need to define a settlement cost element for the relevant receiver type. Here are the steps to do this:
  
  
  Access the Configuration:
  
  Go to the SAP Easy Access screen.
  Navigate to the following path: SPRO ->