How To Fix NAA127 - Cust. billing type &1 not of categ. 'Credit memo' (customer arrangement)

SAP Error Message - Details

• Message type: E = Error

• Message class: NAA - Subsequent settlement (Purchasing)

• Message number: 127

• Message text: Cust. billing type &1 not of categ. 'Credit memo' (customer arrangement)

What causes this issue?

Customer billing type &V1& does not have sales document category 'O'
(credit memo).
However, arrangement type &V2& is used for subsequent settlement for
customers (contact person is a customer). Credit memos are generally
created in settlement accounting for customers.

System Response

You can make the assignment (warning only).

How to fix this error?

INCLUDE ISR_CHECK

Procedure for System Administrators

You can copy billing document types BM1 and BM3 (for supplier rebate
arrangements), but you may have to adjust the sales document category.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message NAA127 - Cust. billing type &1 not of categ. 'Credit memo' (customer arrangement) ?

  The SAP error message NAA127 indicates that there is an issue with the billing type being used in a customer arrangement. Specifically, it states that the billing type you are trying to use is not categorized as a "Credit memo." This error typically arises in the context of billing documents, particularly when dealing with customer arrangements or agreements.
  Cause:
  
  Incorrect Billing Type: The billing type specified in the transaction is not set up as a credit memo in the system.
  Configuration Issues: The billing type may not be properly configured in the system to be recognized as a credit memo.
  Data Entry Error: There may be a mistake in the data entry where the wrong billing type is selected.
  
  Solution:
  
  
  Check Billing Type Configuration:
  
  Go to the configuration settings in SAP (Transaction code: SPRO).
  Navigate to the relevant section for billing types (usually under Sales and Distribution > Billing > Billing Types).
  Verify that the billing type you are using is indeed categorized as a credit memo.
  
  
  
  Use Correct Billing Type:
  
  If the billing type is incorrect, select the appropriate billing type that is categorized as a credit memo for the transaction you are processing.
  
  
  
  Review Customer Arrangement:
  
  Ensure that the customer arrangement you are working with is set up correctly and that it allows for credit memo billing types.
  
  
  
  Consult Documentation:
  
  Review any relevant documentation or guidelines provided by your organization regarding billing types and customer arrangements.
  
  
  
  Contact SAP Support:
  
  If you are unable to resolve the issue, consider reaching out to your SAP support team or consulting SAP Notes for any known issues related to this error message.
  
  
  
  Related Information:
  
  Billing Types: In SAP, billing types are used to categorize different types of billing documents (e.g., invoices, credit memos, debit memos). Each billing type has specific settings that determine how it behaves in the system.
  Customer Arrangements: These are agreements or contracts with customers that may include specific terms for billing, pricing, and other conditions.
  SAP Documentation: Refer to SAP Help Portal or SAP Notes for detailed information on billing types and configurations.
  
  By following these steps, you should be able to identify the cause of the error and implement the necessary changes to resolve it.