How To Fix MN172 - Settlement type &1 not allowed (function module &2)

SAP Error Message - Details

• Message type: E = Error

• Message class: MN - Message class for subsequent settlement (Purchasing)

• Message number: 172

• Message text: Settlement type &1 not allowed (function module &2)

What causes this issue?

Valid settlement types are:

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

0 - credit-side settlement at plant level (supplier billing document)
1 - credit-side settlement at purchasing organization level (supplier
billing document - up to Release 4.0D, also credit memos from
Invoice Verification)
2 - debit-side settlement at plant level (customer billing document)
3 - debit-side settlement at purchasing organization level (customer
billing document)
The affected rebate arrangement is &V3&.

System Response

Contact your system administrator. It will probably be necessary to
alter the program (internal program error).
The error occurred in function module &V2&.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message MN172 - Settlement type &1 not allowed (function module &2) ?

  The SAP error message MN172, which states "Settlement type &1 not allowed (function module &2)," typically occurs in the context of settlement processes in SAP, particularly when dealing with internal orders, projects, or cost centers. This error indicates that the specified settlement type is not permitted for the operation being performed.
  Cause:
  
  Invalid Settlement Type: The settlement type specified in the transaction is not valid for the particular function module being executed. This could be due to configuration settings or the nature of the transaction.
  Configuration Issues: The settlement type may not be configured correctly in the system. This could involve settings in the controlling area or the specific order type.
  Business Rules: Certain business rules or restrictions may prevent the use of specific settlement types for certain transactions or objects.
  
  Solution:
  
  Check Settlement Type: Verify the settlement type being used in the transaction. Ensure that it is appropriate for the context of the operation.
  Review Configuration: 
  
  Go to the configuration settings in SAP (Transaction SPRO) and check the settings for the relevant controlling area, order type, or project type.
  Ensure that the settlement type is allowed for the specific object you are working with.
  
  
  Consult Documentation: Review the SAP documentation or help files related to the specific function module mentioned in the error message. This may provide insights into the allowed settlement types.
  Adjust Business Rules: If applicable, consult with your business process owner or SAP consultant to determine if the business rules need to be adjusted to allow the desired settlement type.
  Testing: After making any changes, perform a test transaction to ensure that the error is resolved.
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like KO02 (Change Order), KO03 (Display Order), or CJ20N (Project Builder) to check the settings related to the order or project.
  Function Module: The function module mentioned in the error message can provide additional context. You can use transaction SE37 to look up the function module and understand its parameters and logic.
  SAP Notes: Check the SAP Support Portal for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  
  If the issue persists after following these steps, it may be beneficial to engage with your SAP support team or a consultant who can provide more in-depth analysis and assistance.