How To Fix KO840 - Settlement profile &1 with settlement of parallel ledgers not supported

KO840 - Overview

• Message type: E = Error

• Message class: KO - Master data for CO orders

• Message number: 840

• Message text: Settlement profile &1 with settlement of parallel ledgers not supported

What causes this issue?

The settlement of parallel ledgers is activated in settlement profile
&V1&. Because of the order category (&V2&) of order type &V3&, the use
of this settlement profile is not supported.

System Response

The settlement profile cannot be used in this order type.,,

How to fix this error?

Choose a settlement profile in which the settlement of parallel ledgers
is not activated.
In production scenarios, the functionality 'Event-Based Work in Process'
enables processing by parallel ledgers.

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.

KO840 - Details

• The SAP error message KO840 indicates that there is an issue with the settlement profile being used for a particular cost object (like an internal order or a project) in relation to parallel ledgers. This error typically arises when the settlement profile is not configured to support the settlement of parallel ledgers, which is a feature that allows for the management of multiple accounting principles (like IFRS and GAAP) within the same system.
  
  Cause:
  
  Settlement Profile Configuration: The settlement profile assigned to the cost object does not support parallel ledger settlements. This can happen if the profile is set up for single ledger use only.
  Cost Object Type: The type of cost object (e.g., internal order, project) may not be compatible with the parallel ledger settings in the current configuration.
  System Settings: The overall system settings for parallel accounting may not be properly configured, leading to this restriction.
  
  
  Solution:
  
  
  Check Settlement Profile:
  
  Go to the configuration of