How To Fix KD553 - Settlement by cost element not possible due to secondary cost element

KD553 - Overview

• Message type: E = Error

• Message class: KD - CO Settlement

• Message number: 553

• Message text: Settlement by cost element not possible due to secondary cost element

What causes this issue?

You want to settle the secondary cost element &V1& by cost element to
an asset or G/L account, which is not allowed.

How to fix this error?

Extend your allocation structure &V2&, so that secondary cost elements
are not settled by cost element, but with a settlement cost element.

Error message extract from SAP system. Copyright SAP SE.

KD553 - Details

• The SAP error message KD553, which states "Settlement by cost element not possible due to secondary cost element," typically occurs during the settlement process in controlling (CO) when there is an attempt to settle costs that involve secondary cost elements. Here’s a breakdown of the cause, potential solutions, and related information:
  
  Cause:
  
  Secondary Cost Elements: The error arises because the settlement process is trying to use a secondary cost element. Secondary cost elements are used for internal allocations and are not meant to be settled to other cost objects or accounts.
  Settlement Configuration: The configuration of the settlement process may not allow for the use of secondary cost elements, which are typically used for internal cost allocations rather than external reporting.
  Cost Object Type: The type of cost object being settled (e.g., internal orders, projects) may not support the use of secondary cost elements in the settlement process.
  
  
  Solution:
  
  Check Cost Elements: Review the cost elements