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

SAP Error Message - Details

• 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 question. Ensure that it is configured to allow subsequent settlements.
  
  
  
  Use Correct Document Type:
  
  If the document type is not meant for subsequent settlements, identify the correct document type that supports this functionality and use it instead.
  
  
  
  Review Business Process:
  
  Ensure that the business process you are executing is appropriate for the billing document type. If necessary, adjust the process or the document type being used.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP functional consultant to understand the implications of the billing document type settings and how they relate to subsequent settlements.
  
  
  
  Related Information:
  
  Subsequent Settlement: This is a process where adjustments or additional charges are applied to a previously issued billing document. It is commonly used in industries like utilities, where actual consumption may differ from estimated billing.
  Billing Document Types: Different billing document types in SAP serve various purposes, such as standard invoices, credit memos, or debit memos. Each type has specific configurations and functionalities.
  SAP Notes: Check for any relevant SAP Notes that may address this error or provide additional guidance on configuring billing document types for subsequent settlements.
  
  If the issue persists after checking the configuration and using the correct document type, it may be beneficial to engage with your SAP support team or a consultant for further assistance.