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

NAA127 - Overview

• 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.

NAA127 - Details

• 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