How To Fix MN420 - Billing document type & not relevant to "subsequent settlement"

MN420 - Overview

• Message type: E = Error

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

• Message number: 420

• Message text: Billing document type & not relevant to "subsequent settlement"

What causes this issue?

Billing document type &V1& is not relevant to "subsequent
(end-of-period rebate) settlement".
Billing document type &V1& has been assigned to arrangement type &V3&
("subsequent settlement") via sales document type &V2& for partial or
final settlement purposes.

System Response

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

How to fix this error?

Choose one of the following options:
Set the indicator <LS>Subject to volume rebate</> for billing document
type &V1&.
Assign a suitable sales document and billing document type to
arrangement type &V3&.
Note that you can store a sales document type and a billing document
type under the arrangment type for both partial/interim and final
settlements.
INCLUDE 'NA_CUST_MAINTAIN' OBJECT DOKU ID TX

<DS:SIMG.SIMG_CFMENUOLSDVOFA>Define billing document types</>
<DS:SIMG.SIMG_CFMENUOLSDVOV8>Define sales document types</>
<DS:SIMG.SIMG_CFMENUOLMEOMHD>Define arrangement types for subsequent
settlement</>
ENDIF

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message MN420 - Billing document type & not relevant to "subsequent settlement" ?

  The SAP error message MN420 indicates that the billing document type specified is not relevant for "subsequent settlement." This typically occurs in the context of billing processes, particularly in industries like utilities or project management where subsequent settlements are common.
  
  Cause:
  
  Billing Document Type Configuration: The billing document type you are trying to use is not configured to allow subsequent settlements. This could be due to settings in the configuration of the billing document types in the SAP system.
  Incorrect Document Type: The document type being used may not be intended for subsequent settlement processes. Each document type has specific purposes and functionalities.
  Business Process Misalignment: The business process being executed may not align with the document type's intended use, leading to this error.
  
  
  Solution:
  
  
  Check Configuration:
  
  Go to the SAP Customizing Implementation Guide (SPRO).
  Navigate to Sales and Distribution > Billing > Billing Document > Define Billing Document Types.
  Verify the settings for the billing document type in