How To Fix MN220 - Settlement type &1 not allowed (settlement partner "debtor")

MN220 - Overview

• Message type: E = Error

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

• Message number: 220

• Message text: Settlement type &1 not allowed (settlement partner "debtor")

What causes this issue?

Settlement type &V1& is valid in principle, but is not permitted for
settlement by a settlement partner with type 'Debtor'.
Rebate arrangements with 'Debtor' as the settlement partner are usually
used in Pooled Payment for subsequent settlement by a customer.
As a result, only customer supplier billing documents are defined as
settlement documents.
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.

2 - debit-side settlement at plant level (customer billing document)
3 - debit-side settlement at purchasing organization level (supplier
billing document)
The arrangement concerned is &V3&.

System Response

How to fix this error?

Contact your system administrator, as a program adjustment is probably
needed (internal program error).
The error occurred in function module &V2&.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

MN220 - Details

• The SAP error message MN220, which states "Settlement type &1 not allowed (settlement partner 'debtor')", typically occurs in the context of settlement processes in SAP, particularly when dealing with internal orders, projects, or other cost objects that require settlement to a specific partner.
  
  Cause:
  The error is triggered when the system encounters a settlement type that is not compatible with the specified settlement partner, which in this case is a "debtor." This can happen due to several reasons:
  
  
  Incorrect Settlement Type: The settlement type being used is not configured to allow settlements to a debtor. Each settlement type has specific rules regarding which partners it can settle to.
  
  
  
  Configuration Issues: The configuration settings for the settlement types or the settlement partners may not be set up correctly in the system.
  
  
  Master Data Issues: The master data for the cost object or the debtor may not be correctly maintained, leading to inconsistencies.
  
  
  Business Process Misalignment: The business